MCPS Budget 101
Two distinct budgets fund Montgomery County Public Schools:
- Operating budget
- Capital budget
The operating and capital budgets are approved in the same manner: the Montgomery County Council ultimately needs to approve both.
Operating Budget: Funding Sources
Per MCPS, the operating budget “supports the day-to-day operations of the school system, including funds for teachers and other staff, supplies and materials, and other operational needs of schools and offices.”
Local property and income taxes, as well as state and federal dollars, fund MCPS’s operating budget. Local tax dollars, specifically property taxes, fund the lion’s share of the operating budget. The MCPS operating budget for the 2025-2026 fiscal year is $3.6 billion.
Capital Budget (Capital Improvement): Funding Sources
The capital budget funds major school and related facility projects, specifically supporting MCPS’s Capital Improvement Plan. Capital budget funding could also be directed towards school building remediation and upgrading facilities.
Unlike the operating budget, which is funded by taxes, the County issues bonds (assumes debt) to fund capital projects. The MCPS capital budget for the 2026 fiscal year is $1.85 billion.