Montgomery County Councilmembers and Montgomery County Public Schools staff worked together to create a Fiscal Year 2026 budget plan that doesn’t include a real estate or income tax hike. And it still funds the schools for 99.8% of the requested amount.
“We have developed a path forward” in what Council President Kate Stewart called a very challenging budget year. “We have all come together.”
Tuesday morning, nine of 11 councilmembers and Montgomery County Public Schools Superintendent and Board of Education president explained what they called “a shared path” to making the budget work.
The proposal calls for a one-time withdrawal of $50 million from a county fund designed to for future retiree benefits. The county has that money in a trust for future use but will use it now – $25 million now and $25 in Fiscal Year 2026 – in an effort to balance the proposed FY26 budget.
The budget must be approved by the County Council and Executive Marc Elrich before it is adopted.
According to the proposal, the county would fund much of the MCPS $3.6 billion request – falling short by $8 million.
Superintendent Dr. Thomas Taylor thanked the council for its “creative problem solving,” adding, “We recognize this is one time funding.”
He admitted that MCPS’s problems with funding health and other benefits for its staff were “self-inflicted.”
“We are deeply grateful to County Council President Kate Stewart for her leadership and to the County Council for this solution, which reflects creative problem-solving, collaboration, and commitment. This outcome shows what’s possible when we work together to meet the moment with necessary focus and do the right thing for our students and employees,” Taylor said.
Nine councilmembers from the 11-member board attended Tuesday’s press conference, showing their support for the proposal.
Councilmember Will Jawando was not at the press conference but issued a statement that expressed his support, but with reservations.
The proposal “provides near-term stability, helping MCPS avoid immediate cuts to classrooms, staffing, and essential student services,” Jawando stated.
“That said, I am concerned that this is not a sustainable solution. Redirecting retiree health benefit funds may help us close the gap this year, but it creates added pressure on future budgets and postpones critical decisions about long-term funding,” he added.
“This short-term fix may provide what we need right now, but our students, educators and families deserve more. Moving forward, we must identify responsible and equitable ways to raise the revenues necessary for the County to meet its obligations and invest in the future and make Montgomery County one of the best public school systems in the nation.”
