By Brian Shane

Staff Writer

(March 26, 2026) More than $17 million in projected new spending for fiscal year 2027 is putting Worcester County’s operating budget $3 million short of what it would collect in revenue.

Budget officer Kim Reynolds last Tuesday told the Worcester County Commissioners that the county’s projected operating budget for FY 2027 is $299 million, a 6% increase.

Proposed spending comes to $302 million, which is an increase of $20.6 million, or 7% over last year.

Two-thirds of projected revenue, or $200 million, would come from property taxes. Another $53 million, or 17% of revenue, comes from income taxes.

Other projected revenue comes from a combination of other taxes, state and federal grants, permitting, service charges, and interest on accounts.

Officials are required to adopt a balanced budget. To reconcile any revenue shortfall, the commissioners can make cuts to projected spending, increase taxes, or tap into budget stabilization funds.

Education is the county’s largest outlay, representing about 45% of total expenditures. Last year, the county gave the school board a record $113.8 million in funding.

For this year, the Worcester County Board of Education is asking the county for $126 million, including a $2.7 million more for healthcare costs and salary increases of $6.6 million.

That payroll bump would go toward a $4,000 raise for teachers and support staff, as well as a step increase for eligible employees.

Teacher raises were a huge point of contention in last year’s budget process, with some commissioners butting heads over whether to account for raises in a fully funded school budget.

Raises are part of the school board’s obligation to meet a state-mandated $60,000 salary minimum, based on the state’s education reform legislation known as the Blueprint for Maryland’s Future.

Debt service on school construction and other projects, totaling $7.7 million, is calculated separately from the school’s operating budget.

Overall, the school board’s projected FY 2027 budget of $157.4 million is a total of state, county, grants, and other funding.

Other requested county expenditures by department include $22.2 million for the sheriff’s office, $16 million for the county jail, and $10 million toward the health department. Another $15.3 million is budgeted for grants to volunteer fire companies.

Notably, the county still has not released the final tally on its budget surplus from fiscal 2026, a figure estimated in the millions thanks to the revenue spike.

Last year’s round of property tax assessments grew the county’s assessable base by more than $4 billion, leading to $11.7 million in new revenue.

Along with increases from income tax and fees, the county’s FY 2026 windfall prompted the commissioners to lower the property tax by three cents. They also lowered the homestead property tax credit from 3% to 0%, which will take effect July 1.

Moving forward, additional budget hearings are scheduled for April and May. The commissioners will hold a public budget hearing May 5 at 6 pm in the county government building in Snow Hill. A budget must be approved by June 2.