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Lobbyist reports budget wins and new taxes after Annapolis session; county wins middle‑school funding
Summary
Greenwill Consulting briefed Kent County commissioners on the Maryland legislative session, reporting a balanced $67 billion budget and new revenue measures including a 3% IT services tax, while confirming a targeted $4 million‑per‑year allocation for the county’s middle‑school project in FY26 and FY27.
Greenwill Consulting updated Kent County commissioners on the Maryland General Assembly’s recent session and the notable budget and policy outcomes that could affect local government.
Jonathan Cartman of Greenwill said the legislature closed a $67 billion, balanced budget after starting the session facing a roughly $3 billion structural shortfall. Cartman highlighted several revenue actions in the final package: a new 3% tax on certain digital/IT services, a $5 tire fee, and adjustments to income‑tax brackets for higher earners. Implementation details for the 3% IT tax remained unclear at the time of the briefing; Cartman said the firm has requested guidance from the Comptroller’s office.
Cartman noted that lawmakers restored funding to the K‑12 Blueprint that the governor initially cut and that counties consider the program an unfunded mandate. He also reported a specific appropriation the county sought for its middle‑school project: $4 million allocated in FY26 and another $4 million in FY27 for a $8 million total commitment contained in the enacted budget language. Greenwill said the language is in the budget and that staff will follow up to confirm how reimbursement or allocation will be administered.
Commissioners asked whether the $4 million maintenance and subsequent $4 million commitment will be direct allocations or reimbursements and whether there are use‑it‑or‑lose‑it deadlines; Greenwill said they would get details, including whether the funds will be reimbursed and how long the county has to obligate them. Commissioners also discussed the possibility that the legislature could return in a special session if federal actions affect Maryland’s budget and that state budget cuts remain a continuing concern.
Greenwill identified several bills the firm opposed that did not pass and praised wins such as blocking proposed credential mandates for finance officers and defeating an annexation restriction. The consultants emphasized continued tracking of implementation rules and guidance on new taxes for municipalities and counties.
