By Adam Pagnucco.
Three days ago, the Parents Coalition of Montgomery County reported that MCPS had signed and the school board had approved a 10-year lease for a warehouse costing roughly $3 million a year. However, the building required $13 million in renovations, which MCPS included in its requested capital budget. The county council did not appropriate this funding, leaving MCPS stuck with lease payments for a building that is not ready for use. The revelation comes as MCPS is getting ready to trim positions as its adapts to the county council’s approved operating budget, which came in $36 million below the district’s request.
Now MCPS is responding to this report, stating: “MCPS is extremely disappointed and frustrated that funds were ultimately not provided to fulfill this lease agreement.” The district claims that it engaged in “a clear and transparent process” and explained “the implications of removing funding” to the council.
MCPS’s statement about the warehouse mess, sent to me earlier today, is printed below.
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The agreement for MCPS to lease a comprehensive warehouse facility was not a surprise event. Elected officials from the City of Rockville, the County Council, and the County Executive, as well as local advocates, have requested for many years that MCPS identify an alternative location to remove all warehouse and materials management functions from the current Board of Education owned location on Stonestreet in Rockville. The facility condition of our existing warehouse is one of the worst in the school system, constructed from reclaimed materials from World War II. The current warehouse was also constructed when the school system was half its current size, forcing MCPS to use several alternative locations for storage and distribution, reducing efficiency.
The Superintendent presented information on the warehouse in multiple public capital budget presentations and requested funding for the warehouse in both the operating and capital budgets. Prior to entering into this arrangement, elected and non-elected stakeholders were aware of this pending lease opportunity, and the forthcoming need for funding. It is equally frustrating to hear that some in our community are surprised by such a clear and transparent process.
On October 30, 2025, the Board of Education approved the lease in a public document at a public business meeting, with the lease becoming effective the next day on November 1, 2025.
MCPS is extremely disappointed and frustrated that funds were ultimately not provided to fulfill this lease agreement. Nonetheless, we understand the fiscal constraints that the Executive and Council faced that resulted in their reductions to both capital and operating funds for MCPS. The warehouse lease and the implications of removing funding were discussed in public in County Council budget work sessions. In light of these budget reductions, we will work with the property owner to evaluate our options.