Howard County school board approves FY2027 budgets, votes to use $6.8M in fund balance after split votes

The Howard County Public Schools Board of Education on May 21 approved its fiscal 2027 operating and capital budgets and a revised long-range master plan, and voted to use $6.8 million in fund balance to close a remaining gap after the county council’s allocation.

Brian Hall, the district’s chief financial officer, told the board the superintendent’s proposed operating budget was $1,278,000,000, the board had requested $1,285,000,000, and the county council allocated $871,500,000. Hall said proposed technical amendments totaling roughly $600,000 leave a remaining budget gap of $6,800,000 that the board must address.

"After we include the $600,000 in proposed technical amendments, the budget gap sits at $6,800,000," Hall said. He described options including program changes or the limited use of one-time funds or fund balance to balance the budget.

Cornell Brown, chief operating officer, said recent action by state capital authorities added about $6,000,000 in state funding for a set of projects, which allowed the district to advance some Build to Learn projects into FY27 and free roughly $5,000,000 to address shortfalls on projects such as Faulkner Ridge and gym AC work.

Board debate focused on whether to cover recurring personnel costs with one-time funds. Board member Miss Watts argued against relying on fund balance for recurring expenses, saying it risks repeating shortfalls in future years. "My concern though is that when we use one-time money for recurring expenses, we'll find ourselves in the same position next year," she said.

Several motions proposed trimming proposed staffing additions — including the removal of 3 FTE athletic trainers and 6.6 FTE school and culture safety assistant positions — but those motions failed on recorded votes. The board then voted 5–2 to adopt the superintendent’s recommendation to use an additional $6,800,000 of fund balance to close the FY27 gap.

Votes at a glance - Adopt county council allocation (budget resolution): Motion carries 6–0–1. - Approve Board operating budget ($1,670,503,652): Motion carries 5–2. - Approve FY2027 capital budget ($160,636,000): Motion carries 6–1. - Approve FY2027–2036 long-range master plan ($1,408,310,000 / revised to $1,408,177,000 later): Motion carries 5–2. - Adopt superintendent recommendation to use $6,800,000 of fund balance: Motion carries 5–2. - Approve revised Board operating budget to submit to county ($1,692,542,271): Motion carries 5–2. - Approve tuition rates and capital budget modifications: motions carried (see meeting record for dollar details and tallies).

Why it matters The board’s decisions set the district’s spending priorities for schools, capital projects and personnel for FY27 and determine how much of the district’s one-time fund balance will be used to close the year’s deficit. Board members who opposed using fund balance argued it reduces the district’s financial cushion; supporters said the district’s current financial health and state capital funding made the approach reasonable for this year.

What’s next Staff will submit the revised budget documents to the county executive and county council for supplemental appropriation and categorical transfers as directed by the board. The board adjourned after completing the budget votes.