Montgomery County supervisors approve $3.52 million to cover school budget overage

The Montgomery County Board of Supervisors voted unanimously June 30 to approve a $3,516,770 general‑fund appropriation and transfer to the school operating fund to cover a year‑end spending overage reported by Montgomery County Public Schools (MCPS).

The appropriation passed on a roll‑call vote, recorded as seven ayes. The board took the measure at a special meeting after county and school finance staff said MCPS would exceed its appropriated budget when payroll and other year‑end expenditures were processed.

Angie Hill, Montgomery County's county administrator, told the board staff initially estimated the overage at "approximately $4,100,000" while the final figure presented for appropriation was $3,516,770. She said county finance staff worked with MCPS to identify expenditures that could be deferred to July and to prioritize ensuring all MCPS employees would receive their June 30 pay.

"The Code of Virginia prohibits the school board from expending funds in excess of its appropriated budget," Hill said, noting that state law also requires advertisement and a public hearing before amending the budget when appropriations exceed 1% of the total budget.

Dr. Gimple, superintendent of Montgomery County Public Schools, apologized to the board and the community for the timing of the notification. "We made a mistake... we take full ownership over it," he said, adding that no funds were missing and that the district would engage an independent reviewer. He said the overage amounts to roughly 1.5% of the district's $138 million budget and that he has contracted Craig Meadows to conduct a full audit and help set up oversight committees and online transparency measures before the start of the school year.

MCPS finance staff provided a breakdown of reimbursements and timing that will reduce the net need. Staff said roughly $1,000,000 in grant and reimbursement revenue was in process and expected in July, including about $389,000 outstanding on a GoTech grant, roughly $400,000 across Title grants, approximately $201,000 tied to a VDOE school improvement grant, about $12,000 from Perkins, roughly $10,000 from a special‑education grant, and a state advancing computer‑science grant in the range of $17,000. Staff said those reimbursements plus $2.4 million in additional unappropriated revenues would offset part of the shortfall.

Board members pressed for details on forecasting and controls. Supervisor Kits asked whether existing monitoring tools in the district's Munis financial system were used and whether a more rigorous threshold for notifying both governing bodies would be appropriate. MCPS staff said they had monitored expenditures but acknowledged a communications breakdown in late April and early May and said they will pursue better forecasting tools and more frequent coordination with the county.

The board also discussed purchase orders and carryover. Staff said most open blanket purchase orders had been closed and that roughly $604,000 (discussed in the meeting as both $604,000 and $610,000) in school operating costs — largely insurance — will be expended against the next fiscal year, to be managed within the self‑funded insurance account.

After discussion the board approved the appropriation. The superintendent's audit engagement, the promised monthly liaison updates to the board, and delivery of a detailed list of the grants and reimbursements in process were recorded as the next steps.

The special meeting adjourned after the unanimous vote.