To the Contrary: BCPS Picks an Unnecessary Fight and Undercuts Its Own Arguments

Having both practiced and taught Public Budgeting and Financial Administration, allow me to share a couple of observations related to the current debate about Baltimore County Public Schools’ (BCPS) most recent Budget Allocation Transfer (BAT) request.

Background: The $2 billion BCPS FY22 budget, proposed by Baltimore County Executive John Olszewski, Jr. and unanimously approved by the Council last year, represented the largest single increase ever in school funding and was $32 million higher than the prior year. In fact, the school system received more than it requested, including money for salary increases. The BCPS FY23 budget also provides record funding, for the fourth year in a row. The new FY23 budget for schools is $2.3 billion, again proposed by the County Executive and unanimously approved by the County Council.

The school system’s spending is below the budgeted amount by about $50 million. BCPS wants to avoid having to return this “surplus” to the county. Some version of this situation happens with almost every public agency. There can be a scramble at the end of the fiscal year to spend what money has been appropriated but not yet spent (a) to address other needs, (b) so the agency doesn’t “lose” the money, and © to maintain as high a ‘baseline’ as possible as part of the justification for subsequent budget requests.

Recent History: In June, a BCPS BAT request of $32.9M was rejected by a bipartisan vote of the Council. The transfer of money was to be used for “textbooks, digital materials, and display boards; technology-related items (e.g., prepayment of equipment financing and software license fees); maintenance of plant; Board of Education training and legal fees; and the realignment of expenditures in schools.” In terms of budget categories, the transfers were to go to Administration ($10.5M), Instructional Textbooks & Supplies ($15.7M), and Maintenance of Plant & Equipment ($6.6M). (The remaining $8.7M was to be applied to the category of “Fixed Charges”.) See the June 6, 2022 Fiscal Note, p. 7–10.

Seemingly, faculty and staff raises were not viewed as a concern in June.

The $32.9M was to come from Instructional Salaries & Wages ($12.6M), Special Education ($6M), and Student Transportation Services ($5.5M). Aren’t these the very areas where needs are the greatest? So why was BCPS willing to take money from these categories?

From June to August, the BCPS budget surplus estimate has grown from $32.9M to about $50M. Again, this happens. But this time, BCPS has made salaries THE talking point.

The latest BAT request seems basically a repackaging of the June request using updated budget surplus numbers and a more “salable” justification to rally support and gain approval — the $50M transfer request is “to fund faculty and staff raises for the next several years” (for 3 years, I’m told). All sides agree that our teachers and staff must be fairly and competitively compensated. Raises and cost-of-living increases have been proposed and approved. Why is BCPS turning this important subject into a brawl?

While public agencies should, and many do, plan several years out, they do not typically “bank” future years’ spending ahead of time. As if there is a BCPS savings account in a local bank somewhere. Is that what the school system is proposing? Is such “carry-over funding” or “advance appropriations” over multiple years even legal, let alone fiscally responsible? Fair questions for the County Executive and members of the Council to ask.

With school violence increasing in Baltimore County schools (versus Baltimore City and Prince George’s County, where school violence has decreased), I might have thought a BAT request would have included more school counselors, more investment in staff and student de-escalation training and the like. And/or initiatives to address the hundreds of shortcomings identified in last year’s comprehensive, $600,000, 759-page Public Works LLC efficiency report. Given the known needs, one might think BCPS would want more, not less funding for Special Education. More, not less money for Student Transportation Services.

Perhaps the new BAT request does address these things — the Fiscal Note for the latest BAT request is not included in the Council work session agenda posted 8/26/2022 on the Council’s website. Perhaps the matter was discussed at the Tuesday, August 23, 2022 School Board work session (6pm)? And at the County Council’s work session on Tuesday, August 30, 2022 (4pm)? Both meetings are open to the public. Subject to Board of Education and Council rules, members of the public may also ask to speak.

The County Executive has met with the School Board and the Administration to try to resolve this matter. Olszewski has said he will use roughly $14 million of the school board’s latest $50M BAT request to fund a full year cost-of-living adjustment for school employees that would take effect immediately. What concessions has BCPS offered? None that I have seen.

I wish the Board of Education was getting better advice from the BCPS Administration.

Peta N. Richkus
Towson Resident

former Secretary, MD Department of General Services
former Commissioner, Port of Baltimore, MD Port Administration
MD Representative, President Obama’s US Trade Representative’s Office
former Senior Vice President, Buchart-Horn, Inc., Engineers, Architects and Planners,
MBA, University of Baltimore (Summa cum Laude)
former elementary school teacher and teachers’ union member