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MSDE reports PowerSchool is live; some LEAs underbudget school‑level funding for multilingual learners and compensatory education
Summary
MSDE said PowerSchool is collecting fiscal‑year data to let AIB measure compliance with the Blueprint's minimum school funding rule; while special education met thresholds statewide, the agency reported several LEAs budgeted less than half of required funding for compensatory education and multilingual learner programs.
MSDE presented an update on LEA reporting and early analysis of progress toward the Blueprint’s minimum school funding requirements, saying the PowerSchool reporting system is live and that LEAs submitted full fiscal 2025 data and are reporting monthly for fiscal 2026.
CFO Donna Gunning said the joint board/AIB policy uses 2025 as a baseline: LEAs must reduce by half the number of students attending schools that did not meet minimum school funding in 2026 and meet full compliance in 2027. MSDE explained the rule covers 10 programs (most require 75% of per‑pupil program funds to be allocated and spent at the school level; concentration of poverty funds require 100%).
Gunning described MSDE’s interim analytic approach: because expenditure data through November is partial for the fiscal year, the agency analyzed budgets to classify schools by program into 'meets' or 'not met' and then subdivided 'in progress' cases (50–75%, 60–75%, 75–95%) while treating ≥95% as 'meets' for the purposes of the report. She said that reporting at school‑level categories represented a significant lift for LEAs and that turnover among LEA CFOs and leaders has complicated implementation.
On findings, MSDE told the board that all 24 LEAs met the special education funding requirement. However, Gunning noted concern areas: five LEAs budgeted less than 50% of the required funding for compensatory education (comp ed) and three LEAs budgeted less than 50% of the required funding for multilingual learners at the school level. She described AIB progress‑monitoring conferences and contracts with partners who have helped LEAs on resource allocation methodology.
MSDE outlined next steps including technical assistance sessions for LEAs, sharing of best practices and continued progress monitoring with AIB; the agency plans to present the prepared January report to AIB using November‑closed fiscal data. When asked whether MSDE can identify how many schools trigger the joint policy targets, Gunning reiterated the baseline and AIB‑set '26 targets and said LEAs have specific reduction targets based on the '25 baseline.
Following the report, the committee adjourned to an executive session to discuss MSDE’s FY27 budget proposal. A motion to adjourn to executive session under section 3‑305(b) of the General Provisions Article of the Annotated Code of Maryland was moved by Dr. Michael, seconded by Miss Medina and approved by voice vote.
