Prince George’s County Public Schools faces uncertainty with its 2026 proposed budget after experiencing effects of the Maryland budget deficit and federal funding changes.
The school system proposed a 2026 budget of $2.9 billion to Prince George’s County Council education and workforce development committee on Monday. But the proposed budget is expected to change since figures for state and county contributions have shifted dramatically after the budget’s initial release in January, according to the budget report.
“I know we spent a lot of money on education, and so there’s this responsibility, especially from our constituents, to ensure that the money is spent properly,” District 7 council member Krystal Oriadha said.
The proposed budget shows an increase from the 2025 fiscal year approved budget due to cost-of-living changes, labor contract step increases and mid-year adjustments.
The county’s contributions to the school district are estimated to increase by about $15 to $20 million, according to Arian Albear, director of the education and workforce development committee.
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PGCPS has also been impacted by the Maryland General Assembly’s passed legislation that will delay and cut some funding for Blueprint for Maryland’s Future — the state’s education reform plan passed in 2021 — due to the state’s $3 billion budget deficit.
The state legislation also paused the element that would provide teachers with more out-of-class time — where teachers can collaborate and plan lessons — until 2029, Albear said. Funding will continue to remain at $163 for each student for the 2026 fiscal year, according to the budget report.
The largest decrease in next year’s funding is due to the expiration of COVID-19 relief grants, according to Lisa Howell, PGCPS chief financial officer.
Federal aid is proposed to be more than $141 million, a 2.5 percent decrease from the previous budget and represents about 5 percent of total funding, according to the budget proposal. The school district is uncertain if funding will be provided similar to past years for grants regarding Title I, food services and more, Howell said.
Howell added that PGCPS was able to reduce its budget deficit to $23 million compared to the original $37 million the district projected in February.
“We have a path to be able to close this budget,” Howell said. “We are still in the thick of a very delicate and challenging budget cycle.”
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The school system is monitoring the current economic environment to revisit the impact of higher tariffs, Howell added.
District 1 council member Thomas Dernoga questioned the origin of the fund balance money given the yearly increase in the budget size over the past years.
Fund balance is non-recurring money unspent from previous budget years that is reserved to cover unexpected expenses or bridge budget gaps. The recommended level for the balance is two months of regular funds, according to the proposal, which can help PGCPS cover expenses that are not expected.
PGCPS proposed to use $95 million of its fund balance as a revenue source for next fiscal year, a 20 percent decrease from the previous year’s amount, according to the budget.
“We’re still below that two month minimum. I know it’s viewed as having a cushion, but we are not purposely not trying to spend our budget,” Howell said. “A lot of it is due to salary and other changes in priorities that you plan for that did not materialize.”
