Prince George’s County Public Schools faces a $37 million budget shortfall for the 2026 fiscal year as the state and federal government plan to reduce their contributions, officials said during a county school board meeting Thursday.

PGCPS’ proposed budget is $2.9 billion for the 2026 fiscal year, according to the proposal. The school system will lose $77.6 million in federal funding for the next fiscal year due to the expiration of several grants issued under the American Rescue Plan, an economic stimulus bill passed during the COVID-19 pandemic, according to the proposed budget.

Most of the proposed PGCPS budget — $1.72 billion — comes from the state government, according to the budget proposal.

In January, the Maryland General Assembly introduced legislation to delay and reduce funding from Blueprint for Maryland’s Future, the state’s education reform plan passed in 2021, due to the state government’s $3 billion budget deficit.

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The school system uses the Blueprint funding to help cover its “core operations,” including maintenance, student services and salary increases for teachers, according to PGCPS chief financial officer Lisa Howell.

“The challenge with that, however, is that our base foundation funding is already not sufficient enough to cover some of the items that I just referenced,” Howell said during the meeting. “So now to have that [funding] delayed even further, it has a direct impact on all of our operations of the district.”

If the bill passes, PGCPS will see $22 million in lost revenue for the next fiscal year and about a $1 billion loss across the next eight years, Howell said.

The Blueprint plan aims to enhance educator quality by raising licensure standards for teachers, raising salaries, promoting diversity efforts and expanding professional development opportunities, according to the program’s website.

A delay in Blueprint funding would result in insufficient funds to cover raises for teachers who achieve National Board Certification, according to PGCPS chief human resources officer Kristi Murphy Baldwin.

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“How do we say to our educators in [Blueprint] Pillar 2 that these funds will actually be there for these educator raises and to continue to fund national board certified teachers?” said District 3 Prince George’s County Board of Education member Pamela Boozer-Strother.

Howell said most of the school system’s federal funds are anticipated to continue without disruption. But there is some uncertainty over federal reimbursements for food services as PGCPS officials have yet to receive confirmation on what the reimbursements will look like in the future, she added.

PGCPS superintendent Millard House II said he is confident the school system will be able to close the budget deficit.

“Am I nervous? No, I think this is where we roll up our sleeves and do the work,” House said. “We’re going to get there, and we’re going to ensure that while we get there, we serve the needs of our children in the manner that we need to.”

The school board is scheduled to approve PGCPS’ final budget on Feb. 27.