Superintendent presents FY27 recommended $307.1M budget, asks county for $146.9M local support

St. Mary's County Public Schools Superintendent presented a recommended FY27 operating budget with recurring spending of roughly $300.6 million and recommended revenues of $307.1 million. The superintendent said the district is requesting $146.9 million in local support, an increase of $9.5 million (6.9%). The board will review the budget in weekly January work sessions before a public hearing and final adoption schedule.

The presentation identified negotiated agreements and employee compensation as primary budget drivers. Instructional salaries and wages were listed at $107.2 million, representing a requested increase of $3.4 million (3.3%); special education had a recommended increase of about $1.6 million (6.5%). Presenters said health insurance, pension increases, transportation contract adjustments and other fixed charges also contributed to the increase.

Staffing adjustments included a net reduction of 5.51 unrestricted fund positions overall, a reduction described elsewhere as 6.5 teacher FTEs and four paraeducator positions tied to enrollment decline, the addition of three athletic-trainer FTEs, and a reallocation of 2.5 FTEs to special education. The presenter said the district included a $535,000 turnover credit in payroll calculations to reflect vacancies and expected turnover.

Textbooks and instructional supplies were budgeted at $26.2 million (a $744,000 increase), including $79,000 for state-mandated social-studies curriculum changes for sixth- and seventh-grade materials. Technology refresh and a $3 million allocation were identified for grade-level device refreshes, and the recommendation includes use of E-Rate funds to offset network upgrades.

Transportation remains a significant gap between state support and local cost. Presenters said the state provides about $9.3 million for transportation, while the actual locally incurred cost to operate transportation was described as $25.6 million, leaving an approximate local delta of $16.3 million. The budget includes $26.7 million for student transportation (a $1.0 million increase), and a $1.2 million bus-driver retention stipend funded from fund balance was proposed along with several bus replacements.

The superintendent described increases in state aid projections (net +$1.6 million) but said some state grant lines are decreasing or being eliminated by statute (including a transitional supplemental instruction grant). The presentation also noted nonrecurring fund-balance use of about $6.4 million (including $3.0 million for technology, $1.2 million for the bus retention stipend and $2.0 million for OPEB) and a capital outlay request of $1.1 million reflecting a drop from prior one-time funds.

Presenters emphasized enrollment decline as a primary driver of budget pressure: K-12 enrollment declined from about 16,370 to 16,050 (a drop of roughly 320 students), which affects the state foundation calculation and per-pupil allocations. The district explained how the three-year rolling average is used for state aid and how the blueprint program funding complicates categorical accounting.

Next steps: the district will hold weekly budget work sessions through January, a public hearing scheduled for Jan. 20 evening, a direction/decision meeting Jan. 28 (morning), final board adoption anticipated Feb. 4 and submittal to county commissioners, who will hold their public hearing Apr. 21 and finalize the county operating budget by May 12. The board is scheduled to adopt its final budget on May 20.