The Montgomery County Board of Education (BOE or Board) consists of seven publicly elected members for a four-year term; one student member elected by secondary school students for a one-year term; and the Superintendent of Schools, who is appointed by the Board of Education and is responsible for the administration of the school system. The vote of the Superintendent is not counted for capital and operating budget appropriations. Montgomery County Public Schools (MCPS) operates and maintains a Countywide system of public schools for students from pre-kindergarten through high school (including special education, interagency, and alternative programs) and also...

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AGENCY DESCRIPTION

The Montgomery County Board of Education (BOE or Board) consists of seven publicly elected members for a four-year term; one student member elected by secondary school students for a one-year term; and the Superintendent of Schools, who is appointed by the Board of Education and is responsible for the administration of the school system. The vote of the Superintendent is not counted for capital and operating budget appropriations. Montgomery County Public Schools (MCPS) operates and maintains a Countywide system of public schools for students from pre-kindergarten through high school (including special education, interagency, and alternative programs) and also provides adult education services. At the start of the 2025-2026 school year, 156,541 students were attending 211 separate public educational facilities. (See table at the end for MCPS historical and projected enrollment data by school type).

PROGRAM DESCRIPTION AND OBJECTIVES

The Board's FY27-32 Capital Improvements Program request consists of 7 new and 30 ongoing projects including sub-projects with expenditures in the six-year period. Included within the ongoing projects are two master projects with 7 sub-projects: Major Capital Projects - Elementary, and Major Capital Projects - Secondary.

Three additional projects are included for technical reasons. The State Aid Reconciliation project includes State aid funding assumptions not yet allocated to specific projects, as well as bond funding reductions assumed from this State Aid. The MCPS Funding Reconciliation project includes School Impact Tax, Recordation Tax, and Recordation Tax Premium funding assumptions not yet allocated to specific projects, as well as bond funding reductions assumed from these funding sources. The MCPS Affordability Reconciliation project adjusts total expenditures and funding to conform to the Executive's recommended MCPS funding levels which are affordable within the CIP.

The section following this narrative only shows the project description forms (PDFs) for which the Executive recommends changes to the BOE's request. The complete BOE request can be found on the MCPS web site at:

Capital Improvements Program/Master Plan - Montgomery County Public Schools, Rockville, MD | Montgomery County Public Schools | Rockville, MD (montgomeryschoolsmd.org)

PROGRAM CONTACTS

Contact Donald Connelly of the Montgomery County Public Schools at 240.740.7768 or Eva Acevedo of the Office of Management and Budget at 240.777. 2763 for more information about this agency's capital budget.

CAPITAL PROGRAM REVIEW

Board of Education Request

The Board's FY27-32 capital program request for MCPS totals $2.8 billion, the largest request ever received, a $1.0 billion or 58.8 percent increase over the Approved Amended FY25-30 CIP of $1.8 billion. The Board's request reflects increases of $83.8 million, $176.5 million, $294.9 million, and $308.7 million in FY27, FY28, FY29, and FY30, respectively.

County Executive Recommendations

Despite of the size of this historical request and significant reductions in key County construction funding sources such as Schools Impact Tax, lower expectations for traditional State aid funding levels ($42 million - $45 million a year), nominal increases in Recordation Tax and cost increases across all categories and subcategories in the CIP due to inflation, the County Executive recommends $2.1 billion over the six-year CIP, a $380.0 million increase over the prior approved CIP. This is the largest ever recommended CIP for the school system. The recommendation equals 76.6 percent of the Board's request and 87.2 percent of MCPS' request supporting academic facilities.

The Recommended CIP increases funding by $300.5 million in the first four years of the CIP (FY27-FY30) when funding for projects underway or ready to begin is most urgent. In comparison to last approved estimates, in the first four years of the CIP (FY27-FY30), the Recordation Tax and Recordation Tax Premium (MCPS) estimates have increased by $8.4 million (7.0 percent), and the Schools Impact Tax estimate has decreased by $37.5 million (48.4 percent).

Local funding, consisting of General Obligation Bonds, General Obligation Bond Premium, Current Revenue, Recordation Taxes, Recordation Tax Premium, and School Impact Taxes, represents $1.8 billion or 82.3 percent of the recommended budget. The recommended CIP also assumes $378.0 million in State Aid (17.7 percent). This includes traditional State Aid from the Interagency Commission on School Construction (IAC) Capital Improvement Program and the Supplemental Capital Grant Program for Local School Systems with Significant Enrollment Growth or Relocatable Classrooms (EGRC), and funding from the Built To Learn (BTL) Act of 2020. Since funding from the Built To Learn Act of 2020 has been mostly allocated into projects, the State Aid assumed in the recommended CIP reflects a return to traditional State funding levels ($42 million - $45 million a year).

The graph below reflects a comparison between the Board of Education's request, the County Executive's (CE) Recommended CIP, and the County Council's (CC) approved CIP in the last 10 years to highlight how in most years the BOE's request exceeds the ability of the executive and the legislative branches to fully fund this budget. In years when the BOE's request was fully funded, increases in GO Bonds, impact or recordation taxes, or State Aid revenues were assumed.

Highlights of County Executive Recommendations

• Allocates $2.1 billion to support school construction - the County Executive's highest priority. This is the largest MCPS CIP ever recommended. MCPS represents 32.3 percent of all spending in the CIP.

• The MCPS CIP recommendation assumes $378.0 million in State Aid for school construction which includes approximately $326.1 million in traditional State Aid and EGRC, $50.4 million from the Built To Learn Act program, and $1.5 million in other state funding.

• Despite construction cost increases, significant revenue reductions in the first four years of the CIP (FY27-FY30), and a return to traditional State Aid funding levels ($42 million - $45 million a year), the recommended MCPS CIP increases FY27-FY30 funding by $300.5 million.

• Supports the Blueprint for the Maryland's Future to expand full-day Pre-K education. If funded, MCPS' request would renovate the Emory Grove Center to make it the permanent location for the Upcounty Early Childhood Center.

• Supports funding for MCPS' Countywide infrastructure and systemic projects such as Heating, Ventilation and Air Conditioning (HVAC), Roof Replacement, Planned Lifecycle Asset Replacement (PLAR), ADA Compliance, Emergency Replacement of Major Building Components, as well as others.

• Supports funding for Sustainability Initiatives as it is in alignment with the County's Climate Action Plan and it will contribute to the reduction of greenhouse emissions, resiliency, and building energy and utility efficiency.

• Other County and agency CIP projects which benefit MCPS' programs include: Pedestrian Safety Program, Transportation Improvements For Schools, Fibernet, Ballfields Initiatives, Kennedy Shriver Aquatic Center Building Envelope Improvement, Child Care Renovations (now 3 different projects: Facility Replacement, ADA Remediations, and Playgrounds), High School Wellness Centers, School Based Health & Linkages to Learning Centers, and the MCPS Bus Depot and Maintenance Relocation.

PROGRAM EXPENDITURES

The County Executive reaffirms his commitment to preparing children to live and learn.

Individual Schools and Countywide Projects

The Board's requested capacity-related projects include seven elementary schools, two middle schools, and four high schools including one high school reopening. The Board of Education request includes the creation of one new capacity project at Sligo Middle School and adds increased capacity to the Eastern Middle School Replacement project to accommodate students from the proposed closure of the Silver Spring International Middle School. In addition, the Board's request includes:

• The renovation and expansion of the Carver Educational Services Center to create a Central Office Headquarters housing multiple central offices and services in one space for parents and MCPS staff;

• The renovation of the Emory Grove Center to become the permanent location for the Upcounty Early Childhood Center;

• The renovation of the Spring Mill Center to become the permanent location for the Alternative Education Program; and

• The construction of a new, centralized warehouse.

For the FY27-32 CIP, MCPS used a new CIP prioritization framework to make decisions about capital investments across the school system. Key factors include the facility condition index (FCI), the extent to which the facility supports modern instructional practices and program requirements, the specialized needs of the student populations, and the facility utilization. The physical condition of the facility and its major systems, as measured by the FCI, served as the primary driver in project prioritization.

Since the onset of the COVID-19 pandemic during the 2019-2020 school year, MCPS, like many other school districts around the country, has entered a period of declining enrollment. In response to these changing conditions, the Board's request represents a transition from primarily capacity-driven projects to an approach centered on renovation, renewal, and operational efficiency.

The Board's FY27-32 request for the Major Capital Projects - Elementary project is for $272.0 million to address major capital work in four elementary schools, including two new sub-projects at Burning Tree Elementary School and Highland View Elementary School. The request for the Major Capital Projects - Secondary project totals $415.8 million to address major capital work in two middle schools and one high school, including one new sub-project at Sligo Middle School.

The Board's FY27-32 CIP request includes funding for nineteen Countywide level of effort and compliance projects totaling $1.1 billion, including ADA Compliance; Asbestos Abatement; Building Modifications and Program Improvements; Design and Construction Management; Early Childhood Center; Emergency Replacement of Major Building Components; Facility Planning; Fire Safety Code Upgrades; Heating, Ventilation, and Air Conditioning (HVAC); Improved (Safe) Access to Schools; Outdoor Play Space Maintenance; Planned Life-Cycle Asset Replacement (PLAR); Relocatable Classrooms; Restrooms Renovations; Roof Replacements; School Security Systems; Stormwater Discharge & Water Quality Management; Sustainability Initiatives; and Technology Modernization. The County Executive continues to view maintaining the current MCPS infrastructure as a priority to extend the life of existing facilities.

The Board's FY27-32 CIP request includes $5,350,000 and $1,850,000 in additional funding for FY27 and FY28 respectively for Technology Modernization. These costs must be cash funded and as such must be considered in the context of the FY27 Operating Budget.

Items not supported in the County Executive's recommendation include the Central Office Headquarters project, artificial turf fields, inflation for level of effort projects, additional seats at Eastern and Sligo Middle Schools, and the Sligo Creek Elementary School Replacement project.

The Central Office Headquarters project as proposed requires $223.3 million in County funds in the six-year period, though the Board of Education is exploring a public-private partnership to offset this cost. Funds are included in the Facility Planning project for an advisor to determine if any MCPS capital projects would be good candidates for this type of financing model. In addition, commercial office properties are currently available in the area at reduced cost due to a shift in demand related to remote and hybrid work. The Board of Education should fully explore both options before dedicating local resources to this project.

Funding for artificial turf in the Outdoor Play Space and Athletic Infrastructure project is removed from the County Executive's recommendation due to risks associated with concussion, knee and ankle injuries, heat-related illness, as well as the impact on the environment. The long-term cost in the health and well-being of MCPS students and the impact on the environment outweigh the immediate benefits of lower maintenance costs and increased field availability. Funding to replace those fields with natural grass remains in the project.

For level of effort projects, the CIP holds aside capacity for inflation in projects funded with General Obligation bonds. Programming inflation for level of effort projects as requested by the Board would duplicate capacity already reserved for these projects.

The County Executive's recommendation excludes funding to raise capacity at Eastern Middle School to 1,516 students. This number of seats significantly exceeds the preferred number of students for middle schools which ranges between 750 to 1,200 students. Similarly, funding is excluded for additional seats at Sligo Middle School which would grow to 1,208. The County Executive agrees with the Board of Education's decision to pause the proposed closure of Silver Spring International Middle School. A decision must be made with full community engagement and transparency, following the Board's prescribed process.

Finally, the County Executive recommends that site selection and replacement of Sligo Creek Elementary School wait until the planned countywide elementary school boundary study is completed so that all available options to balance enrollment across the system are understood and considered.

PROGRAM FUNDING

The recommended MCPS capital program is funded using $853.8 million in County General Obligation bonds and $903.7 million of other local resources including General Obligation Bond Premium, Current Revenue, Recordation Tax, Recordation Tax Premium, and Schools Impact Tax. The CIP also assumes $378.0 million of State Aid.

County General Obligation Bonds

The Board's request includes large increases in General Obligation bond expenditures throughout the six-year program. The County Executive recommends bond funding of $853.8 million over six years, which reflects the resources available within the CIP. In FY27, the recommended bond funding for MCPS is $125.5 million.

Other County Resources

Within the six-year CIP, the County Executive recommends $10.1 million in General Obligation Bond Premium, $180.4 million in Current Revenue, $451.7 million in Recordation Tax, $201.5 million in Recordation Tax Premium, and $60.0 million in School Impact Tax revenue.

State Support for Schools

Once the Built to Learn State Aid is fully allocated, State Aid is assumed to return to prior annual funding levels of $42 million - $45 million per year.

The MCPS CIP recommendation assumes over $378.0 million in State Aid for school construction which includes approximately $326.1 million in traditional State Aid and funds from the Supplemental Capital Grant Program for Local School Systems with Significant Enrollment Growth or Relocatable Classrooms, as well as $50.4 million from the Built To Learn program and $1.5 million in other state funding. Total State Aid over the six-year period assumes a $40.7 million decrease in State Aid from the prior approved CIP as funding from the Built to Learn program concludes. To ensure adequate funding amid statewide enrollment declines, additional State Aid and reforms to the state funding formula are essential.

Montgomery County Public Schools has requested $48.8 million of State funding for FY27 for the balance of construction for one project that includes BTL funding, one project with add-on funding, and 15 systemic renovation projects.

The State's Interagency Commission on School Construction made a preliminary recommendation on December 18, 2025 to the State Board of Public Works (BPW) of State Aid related to Montgomery County's request for FY27. The table below shows details by project for the IAC Staff 75% Recommendation. The BPW will make final allocations in the spring of 2026 after the end of the Maryland General Assembly session.

The following table compares the annual amount of State Aid requested by MCPS to the final amount approved by the Interagency Commission on School Construction under three programs: the Capital Improvement Program, the Enrollment Growth or Relocatable Classrooms grant program, and the Built to Learn program.

Growth and Infrastructure Policy

The Growth and Infrastructure Policy (formerly known as the Subdivision Staging Policy) developed by the Planning Department and approved by the County Council is the mechanism used by the County to ensure public facilities, such as schools and transportation, keep up with development. This policy is updated every four years and requires an annual infrastructure test for adequacy.

The Utilization Premium Payment (UPP) was introduced in the Growth and Infrastructure Policy of 2020, and it requires developers to make a surcharge payment if the results of the school adequacy test indicate that projected school utilization in the fourth fiscal year will exceed certain thresholds.

The annual school test of facility adequacy is based on the latest enrollment forecast produced by MCPS and the latest Capital Improvement Program approved by the County Council. The test is divided into three tiers and evaluates every public school facility that serves students living in a specific area. For the test, Montgomery Planning pairs some elementary schools where students attend grades K-2 at one location and grades 3-5 at another location and considered them as one service area.

The annual school test measures capacity utilization in two ways: by the utilization rate and by seat surplus or deficit. The utilization rate is calculated by dividing the enrollment projection at the fourth fiscal year by the capacity of the school and the seat surplus or deficit is calculated by subtracting the enrollment projection at the fourth fiscal year from the capacity of the school. Results of the test determine the adequacy standard of a school or the UPP Tier in which the school falls.

The UPP is a fee paid by developers in areas where schools exceed the adequacy levels established by the Montgomery County Planning Board as a condition of preliminary plan approval. The fee is calculated by applying the appropriate UPP factor to the impact tax rate applicable to a residential unit.

The tables that appear at the end of this chapter present the utilization rate and seat deficit standards used to determine which tier schools fall into. Schools with larger capacity deficits must pay a larger UPP fee (calculated as a percentage of the School Impact Tax rate) to move forward. These funds must be used for capital projects adding capacity at either the school for which they were collected or an adjacent school.

Operating Budget Impact

Operating budget impacts measure resources needed to maintain or operate new or modernized facilities. They include such elements as salaries for administrators, new teachers for new school construction, building service workers, and the cost of energy. MCPS CIP operating budget impacts on Montgomery County Government include the debt service generated by the issuance of government bond funding required for MCPS' capital projects.

According to MCPS standards and using FY26 dollars, each new 740 student elementary school will require approximately $3.2 million in additional annual operating costs. These costs include salaries and employee benefits for 20.70 work-years of non-classroom positions. Each new 1,200 student middle school will require approximately $5.0 million in additional annual operating costs. These costs include salaries and employee benefits for 36.25 work-years of non-classroom positions. A new 2,000 student high school is estimated to require approximately $9.6 million in additional annual operating costs. These costs include salaries and employee benefits for 67.83 work-years of non-classroom positions. The estimated new school cost represents base funding only and does not include special programs or additional resources for highly impacted schools.

STATUTORY AUTHORITY

Titles 3, 4, and 5 of the Education Article, Annotated Code of Maryland, govern the establishment of county boards of education, local school administration, and financing. Each county board is to maintain throughout its county a reasonably uniform system of public schools that is designed to provide quality education and equal educational opportunities for all children. Subtitle 3 of Title 5, State Aid for School Construction, provides for payment of certain public school construction and capital improvement costs by the State through its Public School Construction Program. The CIP review process for the public schools is governed by laws and regulations of the State of Maryland, the Montgomery County Charter, and the Board of Education's Policy on Long-Range Educational Facilities Planning.