Charles County school leaders warn fund balance is shrinking as board approves $10M FY26 increase
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Summary
Superintendent and finance staff told the Board of Education that rising health care, special‑education and transportation costs require a $10 million draw from fund balance; the board approved the FY26 increase and a $4.5 million inter‑category transfer and directed further public advocacy to county commissioners.
Charles County Public Schools officials told the Board of Education on April 14 that the district is facing multi‑year fiscal pressure and will need to draw on reserves to cover this year’s overruns.
During the superintendent’s update and a subsequent finance presentation, district staff said health insurance, special‑education contracted services and student transportation are the primary drivers of the shortfall. The district requested a $10,000,000 increase to the FY26 operating budget to cover those costs, to be taken from the fund balance if approved. Staff also presented an inter‑category budget transfer of $4,500,000 to align spending with current year actuals.
The board voted to approve both measures during the meeting. Officials described the decisions as stopgap steps to maintain operations while the district finalizes an FY27 budget request to county government. Superintendent Doctor Navarro asked the public and labor partners to rally at the county commissioners’ public hearing on April 29 so the system’s FY27 ask will be fully funded.
Board members repeatedly emphasized the speed at which the district’s fund balance has declined: several members said the district used roughly $20 million from reserves last year and could see another $10 million drained this year if the request is approved. Members asked finance staff for clearer projections on how—and how quickly—the fund balance could be rebuilt if county funding does not fully cover the FY27 ask.
Union and community speakers during the public forum echoed the urgency. Veronica Golden, vice president of the Education Association of Charles County, urged transparency about where money is spent and demanded that the district both ask for full funding and account for how funds are used. Will Lewis, representing union stakeholders, urged an honest, data‑driven budget ask and community organizing to secure the dollars the schools need.
What happens next: the district will proceed under the approved FY26 adjustments while preparing its FY27 budget request to the county. The superintendent said board and district leaders will prioritize advocacy and further analysis of structural cost pressures in the coming weeks.
Votes and actions: the board approved the FY26 budget increase request and the inter‑category transfer as presented and approved minutes and personnel items earlier in the meeting. The district’s finance staff noted the board will present the budget ask publicly at the county hearing on April 29.
