Budget Overview
The County Executive's role in the MCPS budget process is to present to the County Council a recommended total budget. The total FY27 Recommended Budget is $3,785.3 million, an increase of $189.8 million or 5.3 percent over the FY26 Approved Budget of $3,595.6 million. The County Executive's recommended budget fully funds the Board of Education's (BOE) request.
This recommended budget includes $2,518.2 million in County funding, an increase of $179.6 million over the FY26 Approved Budget, exceeding the State's Maintenance of Effort (MOE) requirement by $202.8 million.
In order to support this level of spending, the County Executive's budget assumes a property tax rate increase of 6.3 cents. State law (§5-104 of the Education Article) permits counties to increase the property tax rate above the rate authorized under the county's charter for the sole purpose of funding the approved budget of the county board of education. All revenue generated under a supplementary school funding property tax must be allocated to schools and may not supplant local appropriations, two restrictions with which the County Executive's budget complies.
The recommended County contribution of $2,518.2 million represents 66.5 percent of all recommended funding. State aid and grants total $1,051.3 million (27.8 percent); Federal grants and aid total $98.7 million (2.6 percent); and tuition, fees, and private grants total $22.6 million (0.6 percent). The recommended appropriation for the fee-supported Enterprise Fund is $93.1 million (2.5 percent) and for the Special Revenue Fund is $1.4 million (0.04 percent). There are no assumed carryover funds from prior-year appropriations.
In addition to funding MCPS's budget, $27.2 million will be provided by the County from the Consolidated Retiree Health Benefits Trust for the purpose of paying retiree health claims in FY27.
The County also supports operations of the school system through expenditures in other budgets. For example:
- School health services, childhood wellness, mental health services, and Linkages to Learning programs are provided by the Department of Health and Human Services;
- High speed internet service is provided by the County's FiberNet program;
- Research and internet resources are made available in the Montgomery County Public Libraries budget;
- Crossing guards are provided by the Department of Police;
- Sports academies for youth are sponsored by the Department of Recreation;
- Reimbursements for classroom and school sports field rentals by residents and organizations are provided by Community Use of Public Facilities; and
- The Maryland-National Capital Park and Planning Commission provides maintenance of MCPS's ballfields.
In addition to the recommended total in the operating budget for public schools, the MCPS Capital Improvements Program (CIP) requires County funding. Approximately $9.6 million in FY27 Current Revenue: General, $70.9 million in Recordation Tax, and $31.5 million in Recordation Tax Premium are recommended in the FY27-FY32 CIP (including March amendments). The Debt Service requirement for the MCPS capital program is estimated at $162.8 million in FY27.
The following table summarizes the contributions to MCPS that are appropriated in other departments or agencies.
Tax-Supported Funding for the Public Schools
The total tax-supported portion of the County Executive's recommended budget (excluding grants, enterprise funds, fund balance, and special revenue funds) is $3,546.9 million, an increase of $192.2 million or 5.7 percent from FY26 tax-supported spending, driven by increases in the County contribution and State funding. The recommended County contribution of $2,518.2 million represents 71.0 percent of FY27 tax-supported spending.
Maintenance of Effort (MOE) is a State law that requires local jurisdictions to fund their local school systems at the same or higher per-pupil level as in the previous year, ensuring consistent local investment for public education. The minimum required level of local funding increases or decreases relative to changes in enrollment. MOE only impacts local funding and does not consider other funding sources. Any increase to the County contribution of new funding above MOE adds to the base calculation for the next year and increases the per-pupil funding level.
MOE is calculated using the prior-year local appropriation and the greater of either the previous year's actual enrollment or the average actual enrollment of the previous three years. This per-pupil funding amount is then multiplied by the greater of the current year actual enrollment or the average actual enrollment of the past three years. For FY27, the MOE minimum funding level is $23.2 million less than the FY26 local appropriation due to a decline in enrollment. With a recommended County contribution increase of $179.6 million in FY27, the County Executive's budget exceeds MOE funding by $202.8 million.
Fiscal Summary
The County Executive's total recommended budget, from all funding sources, is $3,785.3 million and funds 100 percent of the BOE request. The County Executive relies on the BOE to determine the most appropriate manner to deliver educational services within the recommended budget allocation.
Spending Affordability
In February 2026, the Montgomery County Council approved FY27 Spending Affordability Guidelines (SAG) of $3,352.8 million for the tax-supported portion of the MCPS budget. Both the BOE's request and the County Executive's recommended budget include $3,546.9 million in tax-supported funds, exceeding the SAG guideline by $194.0 million.
Additional Budget Details
The County Executive affirms the authority of the BOE to establish educational policy and determine the allocation of appropriated funds in support of the mission of the public school system. Complete information regarding the MCPS budget request is available in the FY27 Operating Budget tentatively adopted by the BOE in February 2026. Copies of that budget are available at Montgomery County libraries, on the MCPS website, and upon request from the school system.