Talbot County holds public hearing on $161 million FY26 budget, proposes tax rate slightly above constant-yield

Talbot County Council on May 6 held a public hearing on the proposed fiscal year 2026 budget of $161,052,000 and a proposed real property tax rate of 79.26¢ per $100 of assessed value for properties outside incorporated towns. County officials said the proposed rate is 3.3% above the constant-yield rate of 76.7¢ and would generate $1,428,322 more in property tax revenue from unincorporated areas.

The budget presentation emphasized why the proposal matters. Martha Sparks, Talbot County finance director, said the county faces “significant policy shifts” at the state and federal levels and noted that the state has shifted partial responsibility for teacher retirement costs to counties. “These costs are liabilities of the state of Maryland,” Sparks said, adding that the county cannot use reserves for recurring expenditures such as pensions.

County Manager Stepp told the council the budget reflects conservative practices and attempts to limit recurring spending. He said departments’ capital spending will be reduced to “finish what we’ve started,” that positions in the general fund are frozen and that the county is implementing formal reserve policies to manage risk.

Sparks walked through revenue and spending highlights. The budget continues no change to the county’s income tax rate and maintains relatively modest spending growth; recurring operating expenditures remain heavily weighted toward education. Sparks said school appropriations and school-related debt service will account for roughly 42.9% of recurring operating expenditures and that the county has included $440,000 for teacher retirement costs newly billed to the county by the state. She also said the education supplement mechanism in the county charter can be used to raise limited additional property tax revenue but argued that not using the supplement would leave recurring mandated costs uncovered.

In public comment, representatives of local institutions urged continued support for education and community services. Cliff Coppersmith, identified as a representative of Chesapeake College, told the council federal grant renewals such as Upward Bound and TRIO are uncertain and said the college is preparing for possible cuts. Dana Newman, Talbot County free library director, and Mary Pelicano, the library board treasurer, thanked the council for support of a Saint Michaels branch renovation and asked that library staff be included in any county wage adjustments. Phil Rigen and Charlene Rose, who runs Brooklyn Place senior services, also offered comments praising the county’s clear budget presentation and urging continued support for seniors and local programs.

The council did not adopt the FY26 tax rate at the May 6 hearing; Sparks noted the rate will be adopted as part of the budget ordinance currently scheduled for May 27. The council recessed the hearing and set a second hearing for 7 p.m. the same evening at Easton High School cafeteria to continue receiving public input. The motion to recess passed on a recorded voice vote with Council members answering Aye.

The public remains able to submit written comments until Thursday, May 8. More information and the proposed ordinance were posted on the county website.