Talbot Schools Open Fiscal 2028 Budget Talks Facing Lower Enrollment and a State Deficit

EASTON, MARYLAND — Talbot County Public Schools has started building next year's budget with fewer students expected, state education money in question and most of its spending already locked into payroll.

Chief Financial Officer Sarah Jones and Assistant Superintendent Helga Einhorn brought the first fiscal 2028 budget presentation to the Board of Education's Oct. 12 work session; the title slide also lists Sharon Pepukayi, Ed.D., Superintendent of Schools. The slides, posted with the board's meeting materials, say enrollment counts are not final but appear to be decreasing overall, and that projected Blueprint revenue, which follows enrollment, will change. They also warn that Blueprint funding could be reduced in the next legislative session to help close Maryland's projected $3 billion budget deficit.

For families, the biggest number is payroll. Salaries and benefits total $73.6 million in this year's budget, 87% of the unrestricted operating budget, covering 700 full-time-equivalent positions. Each 1% raise for staff costs about $540,000, and health insurance increases, historically 3% to 6%, would add $300,000 to $600,000.

New costs are also lined up. Maryland's paid family leave program, known as FAMLI, begins providing benefits in January 2028. The district's slides estimate a six-month cost of $125,000 to $650,000. The Marathon Health Center, paid by a grant this year, is expected to cost $900,000 in 2028. The slides note that other post-employment benefits for retirees, known as OPEB, were not budgeted this year and that the district must fully meet Maryland's minimum school funding requirement in fiscal 2028.

Other pressures listed: grants fund 31 full-time-equivalent positions this year; federal E-rate money, which covers 80% of internet connection and related hardware costs, is at risk; the inflation figures in the slides show energy costs (gas, fuel and electric) up 16%; and safety and security costs could grow beyond the $400,000 in one-time money the district received this year. Summer school instructors cost about $900 a week.

The presentation ends with questions for the board: Should the district freeze positions? Should the budget be limited to projected revenue, or to half a percent, 1% or 1.5% above it? Should any fund balance be used?

The board's next work session is Monday, Nov. 9, at 5:30 p.m.