PGCPS warns declining enrollment and contracts will force deep choices, possibly staff cuts

Superintendent Dr. Shawn Joseph and CFO Lisa Howell told the committee that steady declines in enrollment and a diminished fund balance are squeezing the school system's ability to absorb negotiated compensation increases and rising operating costs.

"If we give our employees ... the 3% raise that's proposed, we're gonna be at another $100,000,000 cut needed at least," Dr. Joseph said, warning that "we have no additional room to cut services" and that without new revenue the district could face substantial personnel reductions next year. Lisa Howell told the committee funded enrollment will be used to build school budgets for September 2026 and that staff composition is shifting toward higher‑cost groups (special education and students qualifying for free and reduced‑price meals).

Committee members pressed for comparative context: one member noted Montgomery County's larger budget and asked for the state's 'effort index' to clarify how the county's contribution compares with peers. PGCPS staff agreed to look up and provide that index. Joseph urged early, collective planning with unions and other stakeholders to avoid a year‑end crisis.