Caroline County administrator proposes FY '26 budget with tax rate increase

Caroline County's proposed budget for fiscal year 2026 has sparked significant discussions among the Board of Supervisors, particularly regarding a planned increase in the real estate tax rate and funding allocations for public services. The proposed budget includes a 2-cent increase to the real estate tax rate, which has already been approved, with tax bills expected to be mailed out shortly.

The total general fund budget is set at $75,879,421, reflecting a 5.18% increase from the previous fiscal year. However, the overall budget across all funds is projected to decrease by approximately $7 million, primarily due to a reduction in capital expenditures. This budget aims to maintain the county's bond rating by avoiding general fund transfers, a strategy emphasized by the county administrator.

Key expenditures in the budget include the addition of new positions, such as a full-time sheriff's sergeant and a building inspector, to address increased workloads. The budget also proposes a 3% pay increase for constitutional officers and a 4% increase for other county employees, alongside a 1.5% bonus for certain positions.

In terms of education funding, the proposed budget allocates $18 million to Caroline County Public Schools, marking a $1.27 million increase from the previous year. This funding is above the required local effort, allowing for growth in student enrollment. However, the county's proposed budget reduces the school board's funding request by nearly $1.7 million, which may lead to adjustments in school funding categories.

The budget also addresses social services, with an increase of $267,656 to support growing needs in youth services. Other funds, such as the tourism and library funds, will see slight increases, while the detention facility fund is set to decrease due to fixed monthly contract obligations.

Overall, the proposed budget reflects Caroline County's commitment to balancing fiscal responsibility with the need for essential public services, setting the stage for further discussions and adjustments as the budget process unfolds.