Anne Arundel County proposes $2.401 billion FY26 general fund; property tax rate trimmed, parking tax raised

Chris Trumbauer, the county budget officer, presented an overview of County Executive Stuart Pittman’s proposed fiscal year 2026 operating budget at the Anne Arundel County Council public hearing on May 14, 2025. The proposed FY26 general fund is $2,401,417,800, an increase of $89 million, or about 3.8% from the adopted FY25 budget. "I am pleased to report that the fiscal foundation of Anne Arundel County remains strong," Trumbauer told the council and attendees.

The proposal holds the local income tax rates steady, reduces the proposed property tax rate to 97.7 cents per $100 of assessed value — a 0.7-cent reduction from the current 98.3 cents — and raises the local parking tax from 60 cents per 24 hours to $1 per 24 hours, the first parking tax increase since 1999. The budget office said all recurring expenses are funded with recurring revenues and that the proposed budget is balanced. The county is also holding an additional $10 million in reserve as contingency for potential federal funding impacts.

Why it matters: the spending plan funds county priorities while preserving reserves and maintaining the county’s strong credit standing. Trumbauer noted the county again received triple-A credit ratings from the three major agencies and projects a healthy fund balance at year-end. The proposal includes: $981,200,000 for the Anne Arundel County Public Schools (a reported $52 million increase over last year), funding to meet the school system’s compensation package, expanded public-safety staffing and programs, and continued support for health and human services initiatives transitioned from federal recovery funding.

Most important budget details: the budget office reported combined current-year revenue from local income, property and real estate taxes of about $41.9 million above original estimates and elevated investment income from high interest rates. For FY26 the county projects reduced growth in local income tax revenue while property tax and real estate tax revenue should remain generally consistent with current year growth. The capital improvement program submitted alongside the operating budget stays within the county’s debt affordability guidelines and includes funding for ongoing school construction, infrastructure projects, parks improvements and partnerships to accelerate select community projects.

Supporting details and programs: the proposed budget adds positions and funding across departments — the school system funding covers 63 new positions including special education and community school program staff; public safety funding adds a full shift to the police department’s real-time information center and five new positions for the fire training academy; health and human services items include continued support for programs such as the Healthy Communities program, Health Ambassadors, the Violent Interruption Program, expanded crisis response and $1.5 million of general-fund support for the Anne Arundel County Food Bank. Proposed utility changes include a trash and recycling fee of $426 (up $22, or 5.4%), and water and sewer rate increases consistent with current program plans.

Context and next steps: Trumbauer closed by noting the budget team looks forward to working with the county council and the auditor's office during deliberations. Copies of the full proposed budget were made available on the county budget office website."Copies of the entire budget, including budget highlights, are available on the budget office website at www.aacounty.org," he said.

Ending: The council received the presentation as part of a public hearing that opened and closed the evening of May 14; council deliberations and departmental budget hearings are scheduled to continue in subsequent meetings and virtual sessions as posted on the county website.