PRESS RELEASE
CMIT funding update: what’s changing, what it means, and what happens next
Dear CMIT families,
I want to share a clear update on the finances of CMIT North and CMIT South, and what we are doing right now to protect our programs.
What changed at the state level
In December, the State Board adopted a regulation that allows districts to increase the administrative fee by up to 5% and to apply up to 10% toward a Special Education adjustment. This is a major change from the long-standing 2% administrative fee.
What PGCPS is doing next year
In December, PGCPS told charter leaders they would keep us at 2% for administrative fees. The district is keeping that promise for next year, with an important caveat: they are not willing to commit to 2% beyond next year.
More importantly, PGCPS is changing how special education is applied to charter budgets. In prior years, the district withheld only a portion of special education overages. For next year, the district’s current approach reflects the full special education overage in our budgets, even though CMIT does not receive special education revenue and does not manage special education programs centrally the way the district does.
Where does this put CMIT North and CMIT South
Over the last two years, CMIT schools have already lost roughly 6% to 10% in funding due to Blueprint funding changes. At the same time, costs have increased sharply, especially staffing costs that track district agreements and are largely outside our control. We also receive no facilities funding, which means we pay for buildings and major maintenance from operating budgets.
With Blueprint reductions plus the increased special education withholding, our projected combined deficit for CMIT North and CMIT South next year grows from roughly $3.5 million to nearly $4 million.
The bottom line
Our schools will remain open next year. We have reserves, and we will continue operating and serving students. However, this trajectory is not sustainable long-term. If the current approach continues and we do not secure stability, we may not be able to sustain our high school programs beyond 2027.
What must happen to keep programs whole
We are working on two paths that can stabilize the situation:
The Maryland charter facilities bill, being voted on this week
If the Senate restores the facilities amount to $800 per pupil, we have a clear path forward to keep programs whole and protect classroom resources.A local agreement with PGCPS through our charter contracts
This week, we are expecting a response to our contract proposal. Our position is straightforward:
If PGCPS does not agree to (a) implement the Board-approved enrollment increases and (b) cap total withholdings (administrative fee plus special education adjustment) at no more than 5% for the contract term, then the only responsible plan for CLF is to phase out both high school programs beyond 2027 to preserve the elementary programs.
Two scenarios
• If the facilities bill passes at $800 per pupil, we have a path forward to keep programs whole.
• If the facilities bill passes at $200 per pupil but PGCPS honors the enrollment increases and accepts the 5% cap, we still have a path forward to keep programs whole.
Without a 5% cap, any improvement will only buy time. It becomes a stopgap rather than a solution, because the district can increase withholdings again in future years, and we cannot plan our way out of deficits.
A note on the mixed messages we are receiving
I am hearing supportive statements from some district leaders, but the finance discussions and contract negotiations to date have not produced a workable solution. Enrollment increases have not been implemented, and the district has not committed to a 5% cap. That is why we are communicating clearly now and preparing responsibly for all outcomes.
An additional step we may ask of families
To help us explore every responsible option to protect programs, we will send a short parent survey soon. The survey will ask whether families would be willing to support an annual suggested donation of $1,000 (about $100 per month), beginning this summer, and will also ask for other input on budget priorities and cost-saving ideas. We recognize that not every family can contribute, but this information will help us plan realistically and fairly.
How you can help
If we need advocacy support this week on the facilities bill and on our local contract terms, we will send a Quorum link for parents to contact key legislators and district leaders. Parent voices have made a real difference in this process, and we may need that support again.
Thank you for your trust and for standing with our schools. We will keep you updated as soon as we have clarity from the Senate vote and from the district’s contract response.
With appreciation,
Yilmaz Z. Ak, Ed.S.
Chief Executive Officer
Chesapeake Lighthouse Foundation