PGCPS projects FY27 costs to outpace revenue; staff recommend reallocations and stakeholder engagement

Prince George's County Public Schools staff provided an early framing of the fiscal 2027 budget on Oct. 15, saying preliminary projections show expenditures growing faster than revenues and that the district will need to reallocate existing dollars rather than rely on new funding.

"Our initial projections, based again on very high level assumptions, are showing that our costs or expenditures are increasing, over 6 and a half percent from '26 to '27, which is rapidly outpacing the projected revenue growth of less than 5%," Javonne Smith, director of budget and management services, told the committee. Smith said projected revenue growth was nearer 4.5% and that relatively flat enrollment, negotiated salary increases and federal funding uncertainty were the primary drivers of the gap.

Smith said staff do not anticipate new investments for FY27. Instead, the district plans to identify strategic reductions or "divestments," reallocate underspent base funds, and examine long‑term vacancies for possible deletion to free recurring dollars. She said the budget office will work with department chiefs to analyze persistent vacancies and program performance before bringing recommendations to the board. "If we are able to reduce positions that does allow us to have it does free up funding that we can then reallocate," she said.

Smith and Chief Howe emphasized an outreach plan to engage stakeholders early and often, particularly in November and December, and said the board will receive invitations to participate in outreach activities and review community survey input related to FY27 priorities. No formal votes were taken by the committee on the budget framing.