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Montgomery County schools present $739 million FY2026 budget; officials flag enrollment losses and benefit cost pressures
Summary
Montgomery County Public Schools outlined a proposed FY2026 operating budget totaling roughly $739 million across funds, with a $295 million general fund, a required local foundation match of $36,000,001.87, and reserves of about $35 million; presenters warned declining enrollment and rising benefits will affect staffing and spending.
Pamela Watkins, presenting the Montgomery County Public Schools proposed operating budget on Sept. 9, said the district’s total revenues across all funds are about $739,000,000 and total expenditures are budgeted at roughly $680,000,000. The district’s general fund — the focus for most operating decisions — is budgeted at about $295,000,005.60.
Watkins said the state funds roughly 67% of the district’s general fund revenue and local sources account for about 32%. “The foundation program match this year is $36,000,001.87,” she told the board, noting that local property and sales taxes provide the local portion of the match the district must supply to receive full state foundation funding.
Watkins highlighted a recent three‑notch credit rating upgrade to A+ and said the district has set aside about $35 million in reserves for capital, technology, security and vehicle replacement. She said maintaining multi‑month reserves helps the district demonstrate financial stability as it approaches possible bond market activity.
Officials warned about revenue pressures. Watkins reported the district is funded for 25,226 students for FY2026, down roughly 125 students from the prior year. That enrollment decline, she said, reduces state funding and resulted in the loss of approximately 8.6 funded units—teaching and support positions the state previously supported.
Watkins laid out the five fund groups included in the budget: general, special revenue (federal grants such as Title I–IV and child nutrition), capital projects, debt service and fiduciary funds. She said special revenue totals about $54 million and is governed by federal spending rules, while capital and debt funds support construction and bond service tied to projects including the new Percy Julian high school.
Board members thanked staff and opened a public‑question period. A JAG High School teacher raised concerns about promised rebranding and building conditions; district staff responded that some work, including painting, is scheduled for the current year. The board set a second required public budget hearing for Sept. 11.
Next steps: the budget hearing is the first of two required public hearings; Watkins said the second hearing is scheduled for Thursday, Sept. 11 at 4 p.m., after which the board will consider the FY2026 budget adoption timeline.
