Montgomery County Public Schools (MCPS) is required to send to the Montgomery County Council two letters each year on State Budget Category 12, Fixed Charges. One letter due March 31, provides the following: (1) estimate of employer contributions to the MCPS pension fund for the next five fiscal years (FYs); (2) major factors that affect the estimated pension fund contributions for the next five years; (3) the Board’s current strategy in achieving a desired funding level; (4) a comparison of the current FY budgeted versus actual revenue and expenditures for the Group Insurance Funds; and (5) the projected end of year balance for the Group Insurance Funds. The committee will receive an update on the status of the March 31 letter.

The second letter is due September 30 and provides an end of FY report on Category 12 expenditures.

Following the release of the County Executive’s recommendations for the Montgomery County Public Schools FY 2022 Operating Budget on March 15, 2021, staff will provide an update on the County Executive’s recommendations and how they compare to the budget that the Board of Education tentatively adopted on February 23, 2021.

The County Code requires any agency requesting more funding in the operating budget than the County Council’s Spending Affordability Guidelines (SAG) allocation must submit by March 31 a prioritized list of expenditure reductions to bring the budget within the SAG allocation. The presentation will explain why Montgomery County Public Schools will not be required to submit a list of reductions because the tax-supported budget that the Board of Education tentatively adopted on February 23, 2021, plus additional state aid funding and fund balance puts us in compliance with the SAG allocation.