Council President Stewart’s Statement on Preliminary FY26 Budget Agreement with Montgomery County Public Schools
For Immediate Release: Tuesday, May 13, 2025
From the Office of Council President Kate Stewart
Montgomery County Council President Kate Stewart made the following statement today on the announcement of a preliminary agreement regarding the Fiscal Year (FY) 2026 Operating Budget for Montgomery County Public Schools (MCPS).
“I want to thank Superintendent Dr. Thomas Taylor, Montgomery County Public Schools Board of Education President Julie Yang and the entire School Board, and my colleagues on the Council for coming together to support a plan that will fund our public schools and essential County services. When things get tough we come together.
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“Through an unprecedented level of openness and collaboration, we have developed a path forward with the MCPS that funds 99.8 percent of the total fiscal year 2026 MCPS’ Board of Education request for funding and allows a path forward for no tax increase. This agreement will provide MCPS with the resources it needs in the fiscal year ahead.
“Under this plan, the County contribution to MCPS for FY26 would be $210 million over the required maintenance of effort level. In addition, the plan would allow MCPS to receive $50 million ($25 million in both FY25 and FY26) by increasing the school system’s annual draw down from the retiree health benefit trust for current healthcare needs. This use of one-time funds will assist MCPS in meeting its payments for retiree benefits, address cash flow issues, and make other funds available to MCPS to address needs as it takes action on its three-year plan to address escalating health care costs.
“This has been a particularly difficult budget for the County. Actions of the federal government and the White House, coupled with the financial struggles faced by the state has made balancing the needs of Montgomery County government and MCPS challenging.
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“We need to prepare for the future as we are budgeting for today. We know that investing in public education has always been a key driver of our collective success as a thriving community and a driver of our economic development.
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“Because of the tough decisions and reductions this Council has made to the County budget the last few weeks, we have a way forward to pass a budget without a tax increase and fund our schools and essential services to address housing and food insecurity and many of our other critical social services.
“The Council’s actions this week will continue Montgomery County’s steadfast support for Montgomery County Public Schools, ensuring that we can meet the needs of our families, provide students with the resources needed to succeed, and put the County and MCPS in a better position moving forward.”
View the full press conference .
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Release ID: 25-165
Media Contact: Cecily Thorne 301-910-0610
Categories: Kate Stewart
For updates and link to press release, see here: http://www2.montgomerycountymd.gov/mcgportalapps/Press_Detail.aspx?Item_ID=47049