Dollars & Decisions — A Tough Budget Year Ahead💵

October 31, 2025

This is the first installment of Dollars & Decisions — a weekly series charting the path ahead toward the FY 2027 budget.

A Tough Budget Year Ahead & How We Got Here

The FY27 budget will be one of our most challenging in more than a decade.

Three factors are driving this: 

• Declining enrollment
• A shrinking fund balance
• Limited new revenue

How We Got Here

Student enrollment has leveled off across Maryland, including in Prince George's County Public Schools (PGCPS).

Because Blueprint funding is based on per-pupil counts, fewer students mean fewer dollars.

At the same time, our fund balance (the district’s savings account) dropped 42% from FY24 to FY25 and continues to decline. Those reserves helped sustain negotiated raises and essential services, but aren’t a long-term solution.

“This is the first year enrollment has dipped since the pandemic, and we need to ensure we’re operating responsibly within that new reality. We’re resetting our budget to reflect what could be a lasting shift in student enrollment." 

-Chief Financial Officer Lisa Howell

A Changing Financial Landscape

PGCPS operates within a broader economic and political environment that remains uncertain.

✅The state’s Blueprint for Maryland’s Future now accounts for nearly 90% of our revenue — stable but tightly restricted in how it can be used.

✅The County provides the state-mandated minimum contribution, leaving little room for new investments.

✅Federal funding for key programs, from special education to school meals, face potential cuts, which could shift more costs to districts.

These realities mean we must use every available dollar strategically — to accelerate progress, not just preserve it.

Why Not Use the Fund Balance Again?

With uncertain revenues, rising costs, and shrinking federal support, using the fund balance to cover salaries and operations is no longer sustainable. Continuing to draw on reserves would weaken our financial position and limit our flexibility for the future.

Looking Ahead

We realize the budget process can feel distant, but the decisions made this year will shape classrooms, offices, and communities for years to come.

As we build the FY27 plan, we’ll stay focused on:

✅Protecting student services

✅Meeting Blueprint requirements

✅Sustaining our ‘Big Rocks’ and strategic priorities

This year’s budget process will require transparency, discipline, and collective effort to keep PGCPS strong and focused on what matters most!

Stay tuned weekly as we break down the choices ahead and keep you informed.