Finance

Legislative Requirements

Federal and state legislation continues to shape public education in Maryland. Programs such as the Bridge to Excellence in Public Schools, No Child Left Behind, and Race to the Top established requirements for highly qualified educators, expanded pre-kindergarten access, updated teacher and principal evaluations, enhanced student data systems, and improved support for struggling schools. These initiatives, along with technology needs for statewide online assessments, have increased operational and financial demands on school systems.

School Funding

Allegany County Public Schools receives most of its funding from the State of Maryland, with additional support from Allegany County. State funding is based primarily on student enrollment and local wealth, while county funding is subject to Maryland's Maintenance of Effort law. Changes in enrollment, local wealth, and state funding formulas can significantly affect available resources.

Teacher Pension Costs

Maryland shifted a portion of employer teacher pension costs from the state to local school systems, increasing financial responsibility for counties. Although supplemental state aid initially helped offset these costs, long-term funding challenges remain, particularly in Allegany County, where limited local wealth restricts the ability to generate additional revenue.

Facilities and Capital Improvements

The school system has completed long-range planning for secondary school facilities, including studies that led to prioritizing the construction of a new Allegany High School. The State of Maryland has approved the project and will fund up to 93% of eligible construction costs, with the remaining expenses covered locally. Ongoing capital improvements continue to support safe, modern learning environments for students.

recommended building updates and renovations across all five schools. A feasibility study followed, and the Board of Education made the construction of a new Allegany High School its top building priority. A site within Cumberland city limits was secured at no cost. The state has approved the project and will cover 93% of eligible construction costs, with the remaining costs funded locally.

Current Fiscal Year Documents:

• Adopted Operating Budget FY Ending 6.30.26 (PDF)

Finance Archives:

• FY 2024 Financial Audit (PDF)
• FY 2024 Single Audit (PDF)
• FY 2025 Full Budget (PDF)

Payroll Direct Deposit (PDF)

Form W-4 (Fed W/H)

Form MW507 (MD W/H) (PDF)

PA Withholding (PDF)

WV Withholding (PDF)

Maryland POS Option (PDF)

Evidence of Insurability (PDF)

ACH Authorization (PDF)

Funding Sources

Allegany County Public Schools relies primarily on state and local funding to support daily operations. State aid is largely determined by enrollment and local wealth, while county funding depends on the local economy. Additional operating and capital funding is provided through federal and state grants.

Budget Development

The school system operates on a fiscal year from July 1 through June 30 and is required by state law to adopt a balanced budget. Budget planning begins each November with input from central office staff, department leaders, and school principals. After approval by the Board of Education in the spring, the budget is submitted to the Allegany County Commissioners for final approval.

Budget Management

The Current Expense Fund is organized into state-mandated expenditure categories, including instruction, administration, transportation, facilities, special education, food services, and capital outlay. Budgetary control is maintained at the category and department levels, with Board and County approval required for transfers between expenditure categories.

Fiduciary Responsibilities

The school system serves as trustee for the School Activity Fund and the Retiree Insurance Benefit Plan Fund. These fiduciary funds are maintained separately to ensure assets are used solely for their intended purposes and are not available to support general school operations.