Montgomery Co. Public Schools loses out on $39M in funding due to a submission error

MONTGOMERY COUNTY, Md. — Montgomery County Public Schools has lost more than $39 million in funding due to a submission error, according to a letter from Superintendent Dr. Thomas Taylor.

The 288-page letter outlines a recommends a capital budget for Fiscal Year 2026 and includes ground on how the district can make up for the huge loss in state aid. 

The multi-million dollar loss was due to an error in the Montgomery County Public School submission for aid in the Charles W. Woodward Project. 

"MCPS has been informed that we will not be receiving $39.3 million in State Aid that was expected due to errors in calculating prevailing wage and bid award across the multiple phases of the project," the letter reads. 

Taylor added that the district is working with the Interagency Commission and the Maryland Stadium Authority to determine whether a portion of that $39.3 million can be awarded.

The letter then details what projects funding can be pulled from in order to make up for the large state aid gap. Those projects include:

"By transferring the $17.7 million from these prior projects, we are able to reduce the funding gap from $39.3 million to $21.6 million," Taylor's letter reads. "Together with the other CIP project reallocations previously identified, the Superintendent's Recommended FY 2026 Capital Budget and Amendments to the FY 2025-2030 Capital Improvements Program requires only $21.6 million in local revenues to address the State Aid gap and keep major projects intact and on schedule."