PGCPS officials warn of $150 million FY27 budget gap; identify $102 million in savings and seek remaining $48 million

Prince George's County Public Schools officials told the board Dec. 18 that the district is facing a projected $150 million budget gap for fiscal year 2027 and outlined steps to close it.

Doctor Joseph, the superintendent, introduced the district's 'Dollars & Decisions' session and framed five priorities, including special education, multilingual learners, early literacy and organizational culture. Chief Howell said the district closed fiscal 2025 with an operating budget near $2.9 billion and an opening fund balance of about $374 million; that balance declined to roughly $217 million after planned spend-downs. Howell said the combination of negotiated salary increases, fringe costs and lower-than-expected salary lapse created the roughly $150 million shortfall for FY27.

Budget Director Siobhan Smith told the board the district has identified $102 million in reductions to date and is still working to locate an additional $48 million in districtwide savings. Smith said the district gave division chiefs targets focused on discretionary spending and overtime; identified savings have been bucketed into seven categories: general operating support, technology and communications, facilities and maintenance, instructional and student supports, business process optimization, specialized school programming and contracted services. She said the district intentionally held special education and charter school funding "harmless" in the current reduction work.

Chief Howell added that the majority of district spending—about 87%—is directed to schools and student supports and that the hiring freeze and nonessential spending pulls (nonlocal travel, catering, registrations) are among steps already taken to reduce costs.

Board members pressed for operational detail. Board member Brown asked whether cuts will affect class sizes or extracurriculars and Howell said principals had been engaged in planning and cluster-level meetings were planned so principals could align school performance plans to budgets. Board member Walker asked whether enrollment declines are concentrated among high-need students; Howell and Joseph said total enrollment is relatively flat but that pre‑K and multilingual learner counts are down while special education counts have crept up—changes that affect per-pupil allocations.

Officials also flagged a separate revenue risk tied to Maryland State Department of Education (MSDE) reporting. Dr. Moss said the district could lose roughly $60 million because of a change in how certain students (a "firm student" count linked to family certification) are captured unless the legislature or MSDE adjusts the requirement. Chief Howell described the change as a forms/verification requirement that could reduce counts and the resulting funding, and characterized that $60 million as a contingent risk that would exacerbate the $150 million gap.

Siobhan Smith reviewed next steps and deadlines: the proposed FY27 budget will be presented Jan. 22, 2026; the budget book will be posted Jan. 29; public hearings and work sessions begin in February with board adoption in February so the budget can be transmitted to the county. Smith said the district will hold virtual Budget Advisory Committee meetings (dates announced for January and February) and urged public comment during the hearings.

Community members who spoke during public comment urged clearer, earlier line-item transparency and raised concerns about mid-year reallocation of discretionary school funds, special education staffing stability, transportation app reliability and building maintenance. Administration said the discretionary pulls targeted non-instructional accounts (conference travel, catering, registration) and that an exception process exists for schools to request restoration if funds were used for instructional needs.

The board and administration emphasized advocacy as part of their strategy to protect revenue, urging parents and community members to attend Annapolis events and contact state legislators to defend Blueprint and other funding sources. Dr. Moss said the district will publish an advocacy newsletter for the upcoming 90‑day legislative session.

The board will review the detailed proposed budget on Jan. 22; that presentation will include the line items the district proposes as reductions and provide additional opportunities for public comment through February.