What is the MCPS Operating Budget and how is it funded?
The MCPS operating budget funds the day-to-day operation of the school system: the largest component is teacher salaries. It also includes most other salaries (including administration), utilities, building upkeep, transportation, and educational materials. There is a separate budget, the Capital Improvement Plan (CIP), for capital items such as buildings, buses, and the like, which runs parallel. MCPS does not have its own, independent funding source. The total level of funding for the MCPS budget is appropriated by the Montgomery County Council and signed into law by the County Executive. Primary funding comes from general Montgomery County tax revenues; funding from the state, the federal government, and other grant sources is also part of the total budget appropriated to the schools by the County government.
The State of Maryland provides most of its school funding for local governments, including MCPS, according to a formula involving the County's wealth, population, and various other factors. For the current, 2010-11 school year, approximately 63% of MCPS funding came from Montgomery County tax revenues, 23% came from the State of Maryland, 6% came from federal grants, and the rest (4%) from enterprise funds and other grants.
Most of the funds that come from the state are determined according to a formula involving the County's wealth, population, and various other factors. One of the "other factors" is a required "Maintenance of Effort" ("MOE") by County governments on school funding. For any given school year, the MOE requires that the County government spend at least as much per student as it did in the prior year. The consequence of the County failing to meet its MOE requirement is that the State of Maryland can reduce the formula-determined amount of funding it is required to provide. For several years, while the economy was booming, Montgomery County provided more than the MOE in its share of school funding. However, for the fiscal year 2010 and 2011 (school years 2009-10 and 2010-11) budgets, Montgomery County provided less than an MOE level of funding for MCPS. For both years, MCPS was able to obtain a waiver of the state penalty. A possible factor contributing to this waiver for past years was that a condition of federal stimulus funding for the state was that the state maintain school funding.
For the fiscal year 2012 budget (the major focus of our current budget advocacy), additional federal stimulus funding is not expected, thus removing one of the possible incentives for a waiver of the state fine. This also means that MCPS will not get new federal stimulus funds for fy2012. (Stimulus funding for fy2011 was $53 million.) MCPS estimates that the state fine for Montgomery County government failing to meet the FY 2012 MOE requirement would be approximately $27 million.
Because MOE is calculated per pupil, MCPS enrollment is increasing, and the state MOE requirement is based on slightly higher fy2010 funding levels, the County government would need to provide approximately $82 million more local funds to MCPS in fy 2012 than it did for fy 2011 in order to meet the state MOE requirement. Some members of the County Council have indicated that they don't think such an increase will be possible.
On December 15, Superintendent Weast presented his recommended Operating Budget for Fiscal Year 2011-2012 (FY12). He recommends the Montgomery County Council provide funding at a "Maintenance of Effort" (MOE) level. This MOE is mandated by state law in order to ensure a minimum county investment in public schools. The Council has indicated that they will not fund an MOE budget due to poor fiscal conditions in the county. But they need to consider:
* Overall enrollment is increasing as is special education and English as a Second language populations.
* MOE funding by the County is a state mandated, legal requirement. Not meeting MOE jeopardizes funding of $27 million.
* MCPS is highly regarded across the nation and that status should be protected.
* High quality teachers in a high quality school system - attracting high quality teachers requires incentives and continual professional development
* The County must fund a wide range of agencies and services for our citizens, but education must be a priority. Schools are the centerpieces of our communities.
* Our children are one of the most vulnerable populations and they are the future of our County - it is a crucial investment.
* Montgomery County can not slip into mediocrity during this time of national discussion on education.
What are the potential consequences to our families?
* Larger class sizes
* Less one-on-one help for struggling or accelerated students
* Fewer or no after school activities to include (again, potentially) middle school sports
* Fewer staff and resources needed to maintain our schools
* Older equipment including computers, school buses, etc.
* Teachers who do not receive updates, training, and development on the changing curriculum that will result from adoption of Common Core Standards
* Overall, less assistance to those most at risk, resulting in greater stress on other County agencies
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