CFO warns of tightening finances; district eyes additional $10 million from county
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Summary
Anne Arundel County Public Schools’ CFO presented the governor’s recommended budget and district analysis, flagging enrollment declines, higher health‑care and retirement costs, rising utility exposure and a projected need to request an additional ~$10 million from county government to address fiscal 2027 gaps.
Anne Arundel County Public Schools’ chief financial officer briefed the Board of Education on Feb. 4 about the governor’s recommended budget and the district’s revised fiscal outlook, warning of tightening finances that will require difficult choices.
The CFO told the board the administration’s initial analysis projects roughly $612.9 million in state aid for the district — a year‑over‑year increase just under 3.1% — but noted enrollment declines and other factors that limit per‑pupil revenue growth. The district’s combined per‑pupil revenue ranked 14th in the state, driven by an 8.2% rise in local wealth per pupil and a smaller enrollment decline than the state average.
Key cost pressures the CFO highlighted include higher health‑care claims (the health‑care request was increased from $10 million to $20 million), an expected increase in retirement contributions (an additional $3.5 million), modest changes in targeted education funding and potential utility rate increases tied to the regional purchasing consortium. Depending on the timing of a regional utility rate vote, the district estimates it may need roughly $1.7 million more for utilities.
Combining projected adjustments, district staff said they will request an additional $10 million from county government as part of upcoming budget amendments; if county funding remains at previously assumed levels, that request would increase the projected county‑district funding gap. The CFO cautioned that state and federal figures are not final until the General Assembly and federal appropriations processes conclude and said staff will continue to monitor DLS releases and federal allocations.
Board members asked for additional materials and slide decks; staff agreed to share links and to refine estimates as new state information becomes available.
The board will consider proposed amendments at its Feb. 18 meeting and submit final positions to the county executive and council as required by the budget calendar.