HCPSS Presents Fiscal Outlook for FY 2027 Operating Budget

September 30th, 2025

During the Thursday, Sept. 25 Board of Education meeting, Executive Director of Budget, Darin
Conforti, presented the fiscal outlook for the Fiscal Year 2027 (FY27) Operating Budget. This
presentation is the first of many discussions with the Board and other stakeholders that will
continue over the next few months prior to the presentation of the Superintendent’s Proposed
Operating Budget in January 2026.

As the report recalls, recent budget cycles have presented significant challenges. While funding
increases from the State and County have reached historic levels, expenditure growth has
consistently outpaced revenue growth. As a result, the school system has been in the difficult
position of reducing services to partially fund necessary growth.

Despite the FY26 Operating Budget including significant new investments, it marked the second
consecutive year that those investments were accompanied by reductions in services and staff,
as funds were reallocated to cover the rising costs required to maintain a high-quality public-
school education. Two main factors, the Blueprint for Maryland’s Future and the lasting impacts
of the COVID-19 Pandemic, have driven the cost of delivering education upward since 2019.

For several years, the gap between revenues and expenditures was masked using fund balance
and other one-time revenues, but those resources are no longer available at the same levels.
This reality became starkly visible beginning with the FY25 budget, which had to be reduced by
$31 million. Similarly, in FY26, the budget had to be cut again by $9 million, despite record
funding from the County and robust revenue growth from the state. In total, more than $40
million and 296 positions have been cut across the past two years to help pay for the
burgeoning budget needs.

The FY27 budget will continue to face significant expenditure demands to sustain existing
service commitments, meet employee compensation and benefit commitments, and advance
strategic priorities. Expenditure pressures for FY27 could easily match or exceed the growth
experienced in the past two years to meet the needs of the school system.

Developing the FY27 budget will require a measured and prioritized approach. Every additional
cost added to the budget will require a corresponding decision about what the school system
can continue to provide—or may no longer be able to afford. This process will require balancing
the highest-priority new expenditures with an attainable County funding level, while
strategically reallocating existing resources to meet critical needs.

Next Steps

The Superintendent’s Proposed FY2027 Operating Budget will be developed throughout the fall
and presented to the Board of Education in January. Following that presentation, there will be
several Board work sessions and public hearings prior to the adoption of the Board’s Requested
Budget in March.

More information will be provided on the HCPSS website throughout the process.