The start of the new year means state and local governments will also begin honing in on budgets for the next fiscal year, which begins this summer. In Maryland it won鈥檛 be easy.
The state is looking at a multibillion dollar budget deficit, and county governments are also trying to figure out how to handle increased costs with a declining amount of revenue. Prince George鈥檚 County Public Schools Superintendent Millard House II told the school board last month the next budget will be a challenge.
鈥淚n addition to the uncertainty to the economy and changes in the federal government, we鈥檙e planning for the impact of a few different things,鈥� House said.
That includes a reduction in federal funding after a big infusion of COVID relief money earlier this decade.
鈥淭he state facing substantial gaps between spending commitments and ongoing revenue鈥� will have an impact on school systems statewide, House said.
Another big impact comes from a telecommunications tax revenue stream that used to go directly to the school system, but is now part of the county鈥檚 contribution to the Blueprint for Maryland’s Future funding requirements.
Instead of the county鈥檚 contribution on top of that additional revenue stream, the county will now get credit for it. In return, the county has promised to take on more of the cost of constructing new schools in the future.
For most taxpayers, a dollar is a dollar, but in this case, the capital budget is separate from the operating budget being discussed here, hence the budget gap.
Overall enrollment in the county has started holding steady, but it鈥檚 less than what it was before the pandemic, and the number of students who didn’t grow up with English as their primary language is increasing, which requires more services.
In all, House said the priorities for the upcoming budget will be investments in literacy among young students, mental health and other social services, and students with disabilities, as well as continued enhancements to transportation.
At the same time, the costs associated with running a school system are going up. Those expenses include everything from salaries to building maintenance, as well as new technology used by the school system.
鈥淕iven the financial constraints that we鈥檙e facing, my executive leadership has been challenged,鈥� House said. 鈥淓ven with the limited program enhancements that we鈥檙e facing, the budget deficit, due to the mandatory obligations and the rising cost of doing business 鈥� will require further cuts.鈥�
A few million dollars have already been cut from the budget, but in the coming months the school system will try to find another $37.3 million in savings. And school leaders admitted this isn鈥檛 just a one-time deficit the school system will be facing 鈥� and the county will need to 鈥渓ook at really resetting our budget鈥� in the future.
In the meantime, the school system will be holding multiple budget work sessions and public hearings during January and February to solicit more feedback from county residents.
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