With the Prince George’s County Board of Education’s approval of the proposed FY27 operating budget, the process now moves to the Prince George’s County Council, which will hold public hearings on April 28 and May 4 to gather community input on the Prince George’s County Public Schools (PGCPS) portion of the County budget.
Where Things Stand Now
PGCPS is currently working to close a remaining budget gap of approximately $17 million for essential operations. This gap reflects the difference between:
- $181 million in required costs, including employee compensation and benefits, as well as day-to-day operations such as transportation, utilities, textbooks and technology
- $164 million in identified funding, including budget reductions and revenue adjustments
To help bridge the gap, the district requested $50 million in additional County funding. To date, $20 million has been committed, leaving a remaining shortfall to resolve.
Several factors are putting pressure on the FY27 budget:
- Declining student enrollment, which reduces funding
- Changes in state funding formulas, including early childhood (PreK) eligibility adjustments
- Rising costs, especially for:
- Employee pay and benefits
- Special Education services
- Transportation, fuel, and utilities
Special Education remains a significant and necessary investment. These services are legally required, and costs continue to increase due to staffing needs, contracted services and compliance requirements.
What We’ve Done So Far
To address the shortfall, the district identified approximately $146 million in reductions and adjustments, including:
- Central office and operational efficiencies (such as reduced contracts, hiring freezes, and lower discretionary spending)
- Strategic realignment of programs and funding sources
- School-based adjustments, including proposed program changes and staffing shifts
The district is also maximizing grant funding and shifting some costs (like building repairs) to other funding sources where possible.
What This Means for Schools and Students
As planning continues, families can expect:
- Continued focus on core instruction and required services
- Prioritization of resources for Special Education and student supports
- Potential adjustments to some programs or staffing, based on enrollment and funding
What Happens Next
With the Board-approved budget now under County review, the process continues through several key phases:
April–May
- Schools finalize their budgets in coordination with central offices
- State funding levels and grant awards are confirmed
- Key assumptions, such as enrollment and compensation, are revalidated
Ongoing discussions continue with the County regarding additional funding
- The Prince George’s County Council holds public hearings on April 28 and May 4. Details and speaker registration are available here.
- Updated revenue and cost projections provide a clearer financial picture
- The district works to close any remaining gap ahead of final approvals
June
- Final budget decisions are made in preparation for the new fiscal year
- Schools and offices plan for implementation, including staffing and program adjustments
July 1 and Beyond (Start of FY27)
The new fiscal year begins, but budget adjustments may continue based on:
- Final enrollment
- Staffing changes
- Updated funding or grant awards
- Program or organizational shifts
The FY27 budget reflects a challenging financial environment, but the district remains focused on meeting student needs, maintaining required services and making thoughtful, strategic decisions.
While much of the budget will be set before July 1, this is an ongoing process. PGCPS will continue to monitor conditions and make adjustments throughout the year to ensure resources remain aligned with student needs and available funding.
