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 Recommended FY26 Budget is $3,621.1 million, an increase of $298.8 million, or 9.0 percent over the FY25 Approved Budget of $3,322.3 million. In response to the Board of Education's (BOE) requested budget, an increase of $332.9 million, the County Executive's recommended budget funds 99.1 percent of the Board's request. This recommended budget exceeds the amount required by the State's Maintenance of Effort (MOE) law by $256.0 million.
Separately, 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 FY26.
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 the Community Use of Public Facilities; and
- The Maryland-National Capital Park and Planning Commission provides maintenance of MCPS's ballfields.
In addition to the total recommended in the operating budget for public schools, the MCPS Capital Improvements Program (CIP) requires County funding. Approximately $28.8 million in FY26 Current Revenue: General, $56.4 million in Recordation Tax, and $23.1 million in Recordation Tax Premium are recommended in the FY25-FY30 CIP (including March amendments). The Debt Service requirement for the MCPS capital program is estimated at $154.4 million in FY26.
The table below summarizes the contributions to MCPS that are appropriated in other departments or agencies.
The recommended budget includes the County's contribution of $2,378.6 million (65.7 percent of all recommended funding). There are no carryover funds from prior-year appropriations. State aid and grants total $1,020.9 million (28.2 percent); Federal grants and aid total $107.3 million (3.0 percent); and tuition, fees, and private grants total $22.0 million (0.6 percent). The recommended appropriation for the fee-supported Enterprise Fund is $90.8 million (2.5 percent) and for the Special Revenue Fund is $1.4 million (0.04 percent).
Tax-Supported Funding for the Public Schools
For FY26, the total tax-supported portion of the County Executive's recommended budget (excluding grants, enterprise funds, fund balance, and special revenue funds) is $3,380.2 million, an increase of $274.3 million, or 8.8 percent from the FY25 tax-supported spending, driven by increases in the County contribution and State funding. The tax-supported portion of the recommendation includes the FY26 local contribution of $2,378.6 million. The local contribution represents a $250.0 million increase from the prior-year appropriation.
Maintenance of Effort is a State requirement that local jurisdictions fund their local school systems at the same per-pupil funding level as the prior year at minimum in order to receive additional State Aid. 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 amount is then multiplied by the greater of the current year actual enrollment or the average actual enrollment of the past three years. The MOE-required level of funding increases when enrollment grows and decreases when enrollment declines. For FY26, MOE allows for a reduction of $6.0 million in the County contribution compared to FY25. With a recommended County contribution increase of $250.0 million over FY25, the County Executive's budget exceeds the MOE-required level of funding by $256.0 million.
Fiscal Summary
The County Executive's total recommended budget, from all funding sources, is $3,621.1 million and funds 99.1 percent of the BOE request. The County Executive relies on the BOE to determine the most appropriate manner to deliver educational services within its recommended budget allocation.
However, §5-102 (c)(2) of the Education Article requires Montgomery County to "indicate in writing which major categories of the annual budget of the county board have been denied in whole or reduced in part and the reason for the denial or reduction," a law that pertains only to counties whose "governing body... consists of a county executive and county council," §5-102 (c)(1).
The County Executive recommends increasing the County contribution by $250.0 million. Amid the State's projected budget deficit, uncertainty remains surrounding potential cuts to education funding. Once the Maryland General Assembly concludes its actions on the State's budget, the County Executive intends to submit budget amendments to the County Council that will fully fund the Board's FY26 request. The County Executive's ability to do so will ultimately depend on actions taken in Annapolis.
Spending Affordability
In February 2025, the Montgomery County Council approved FY26 Spending Affordability Guidelines (SAG) of $3,124.2 million for the tax-supported funds of MCPS. The BOE requested $3,414.2 million in tax-supported funds, exceeding the SAG guideline by $290.0 million. The County Executive's recommendation is $256.0 million above the SAG guideline.
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 FY26 Operating Budget tentatively adopted by the BOE in February 2025. Copies of that budget are available at Montgomery County libraries, on the MCPS website, and upon request from the school system.