Anne Arundel County executive proposes $2.41 billion FY26 budget with record school increase and $10 million federal-impact reserve

County Executive Stuart Pittman on Monday presented a $2.41 billion fiscal 2026 budget proposal to the Anne Arundel County Council that keeps overall taxes flat, lowers the county property tax rate slightly and directs new funding to schools, food security and public-safety staffing.

The proposal, which Pittman asked the seven-member council to review over the next six weeks, would allocate a record $52 million in new county support for Anne Arundel County Public Schools; fund a $1.5 million food-bank grant program; and set aside $10 million in a Federal Impact Reserve to be appropriated by the council only if federal actions reduce county revenues or services.

Pittman said the budget reflects the county’s priorities and a defensive posture against projected federal cuts. "This budget does not raise taxes," he said, adding that the county’s proposed income tax remains lower than other Central Maryland counties and that the countywide property tax rate would fall from 98.3¢ to 97.7¢ per $100 of assessed value. "The fiscal foundation of Anne Arundel County is strong," Pittman said.

Budget Officer Chris Trumbauer provided the administration’s line-by-line numbers and financial context. He said the general-fund expenditure budget totals $2.41 billion, of which roughly $166 million is drawn from fund balance, and that recurring revenues total roughly $2.23 billion. Trumbauer said the administration is proposing a 3% cost-of-living adjustment and merit increases for nonrepresented employees and that tentative contracts with bargaining units have been negotiated.

Key items included in the proposal: - Education: $52 million in new county funding for Anne Arundel County Public Schools to cover step increases, a 3% COLA for bargaining unit employees, 28 special-education positions, 10 English language arts positions, two bilingual facilitator positions, 14 community-school managers and 11 social-emotional-learning positions. The county will also absorb an approximately $9.3 million state shift to local school pension costs noted by Trumbauer. - Social services and nonprofit support: $1.5 million recommended for food-bank operations and recurring funding for health ambassadors and community-led violence-interruption programs. - Housing: Transfer-tax revenue designated for the affordable-housing trust fund is expected to increase about 40%, allowing more administrator and program funding for eviction prevention and moderately priced dwelling unit programs. - Public safety: Continued investments in police and fire staffing, including funding for two new civilian courtroom-coverage positions in the sheriff’s office and five training-academy positions for the fire department. - Animal services and IT: Funding to create a Department of Animal Services with six new positions and a $4.3 million increase for an enterprise IT system upgrade. - Fiscal cushions: The budget proposes continuing the county’s revenue-reserve policy at the maximum 8% and setting aside $10 million for a Federal Impact Reserve; Trumbauer said any disbursement of that reserve would require separate council legislation.

Trumbauer said the administration treated unusually strong revenue items — for example, elevated investment income and certain fiduciary and penalty income — as one-time funds and avoided counting them as recurring revenue. He said the county’s revised FY25 results put it in a stronger-than-expected fund-balance position, leaving roughly $176 million available heading into the FY26 year and allowing the administration to propose sizable one-time and recurring investments without raising tax rates.

Gus Kurtz, chair of the Planning Advisory Board, and David Guppay, chair of the County Spending Affordability Committee, provided advisory commentary on the capital-improvement plan and the operating growth limit. Kurtz said the PAB recommended keeping the six-year CIP within affordability, noting cost escalation on recurring capital projects and flagging specific projects such as library investments and the West County swim center. Guppay said the affordability committee recommended a 4.9% operating-growth limit for FY26 and expressed concern about potential federal workforce reductions and their impact on local income-tax receipts.

The county executive invited the public to review budget materials at acounty.org/budget; Trumbauer said public hearings were scheduled and the council will finalize the budget through its statutory appropriation process.

Ending notes: The council did not vote on the budget at the meeting; Pittman and Trumbauer will appear before the council during the scheduled public hearings. If the council authorizes any use of the $10 million Federal Impact Reserve, that will require separate legislation and a recorded vote.