Committee forwards $10.5M in MCPS categorical transfers; employee-benefit plan remains a focus

The Education and Culture Committee on Oct. 9 forwarded two fiscal-year 2025 categorical-transfer resolutions from Montgomery County Public Schools to the full Council, sending an operating transfer of $7,200,000 and a grant-funded transfer of $3,300,000 for further consideration.

Council staff told the committee the districtended FY25 with a $24.2 million fund balance, up from $18.8 million at the end of FY24, and projected a beginning FY26 balance of $22.0 million after assigned funds and other adjustments. Staffsaid nine state categories ended FY25 with surpluses (including maintenance of plant and textbooks and instructional supplies) while four ended in deficit, notably student transportation and instructional salaries.

The committee heard a detailed staff summary of the districtcategory-by-category balances and 10-year trend data before members asked MCPS finance staff about the employee benefit plan (EBP), which has shown a multi-year deficit. MCPS staff described a three-year plan to reduce the EBP shortfall and said they had renegotiated terms with the districtinsurance provider and worked with consultant Aon on updated projections. "My expectation right now based on the projectionsis that we're going to start seeing a decrease," MCPS finance staff said during questioning.

MCPS acknowledged the instructional-salaries category shifted to a deficit in FY25 after the system reduced roughly 200 positions earlier in the year and then added two school days that required hourly pay for paraeducators and other hourly employees. Staff said that mix of position reductions, scheduling changes and the resulting payroll for hourly staff contributed to the year-end deficit in instructional salaries.

With no objection, Chair Vice President Joando directed that both resolutions be transmitted to full Council for consideration. The committee did not take a final vote on the transfers; forwarding to full Council was handled by unanimous consent.

What happens next

The two transfer resolutions will appear on a forthcoming full-Council docket for action. MCPS staff told the committee that the EBP will continue to be monitored and addressed in the coming budget cycles; it is expected to remain a multi-year priority for the school system.

Councilmember questions and staff followup

Committee members pressed staff for more detailed follow-up materials, including the analytic tables that accompany the staff report and additional context on the planned EBP savings and how those savings are expected to materialize in the next three years. Council staff indicated those details are in the meeting packet and available to members.

Speakers

Vice President Joando, Chair, Montgomery County Council Education and Culture Committee (first reference at 22:55). Miss Cummings, Council staff (presented fiscal tables). Miss Alfonso Winter, MCPS staff (discussed EBP and category balances).