St. Mary’s County commissioners review revised draft budget; school funding deferred pending state aid figures

St. Mary’s County Board of Commissioners met April 27 in a budget work session to review updated revenue and expense estimates, consider department appeals and realignments, and direct staff on next steps before finalizing the fiscal‑year 2016 draft budget.

The session focused on updated general fund numbers, enterprise fund adjustments, and a still‑uncertain increase in state education aid that commissioners said will affect recurring commitments to schools and labor negotiations. County staff reported a net increase in available funds of roughly $1.4 million in the revised draft as of April 27, driven by adjustments to pension and payroll calculations, restored state shared revenues, and certain revenue corrections.

Why this matters: the board must balance one‑time uses of fund balance against recurring obligations such as steps and healthcare for employees and the school system. Commissioners said they want to preserve a cushion for revenue volatility while funding urgent items raised during public hearings.

County staff presented the revised revenue total and described the main changes: an added HR Medicare drug subsidy, a $387,500 adjustment tied to an excludable Board of Education cost, restored parkland shared revenue, and a net correction to state police aid. On the expense side, staff said reallocation of previously reserved public hearing funds, corrections to payroll and pension rates, and departmental reallocations reduced projected expenses so that draft revenues exceeded expenses by about $1.4 million.

Janet Cudmore, a county staff member presenting the budget, summarized the current status: "So the difference today between the revenues and the expenses, we actually have an increase of 1,400,000 that's available to make changes to and to allocate." Cudmore walked commissioners through line‑by‑line changes in the general fund and the enterprise funds and described a proposed plan for fund balance that preserves a multi‑million dollar cushion for contingencies.

Discussion and key directives

- Education/state aid: Commissioners emphasized uncertainty about final state education aid. The administration reported staff estimates ranging from about $1.2 million to the $1.9 million figure that had been reported to the board; commissioners agreed to defer major school funding decisions until clearer state numbers are available at next week’s work session. The Board of Education had requested a $1.6 million paydown of a lease; staff proposed using fund balance in 2016 if the board approves it.

- Fund balance plan: Staff proposed drawing down several one‑time items (payoffs and nonrecurring purchases) while holding roughly half of the county’s available fund balance as a cushion for revenue risk and disasters. Commissioners reiterated support for keeping a healthy fund balance for credit‑rating and emergency purposes while also exploring options to bring down unusually large enterprise fund balances.

- Compensation and classification: Commissioners reviewed allocation of a previously unallocated $1,024,000 for merit increases and a classification study; staff reported reallocations to departments and elected officials and identified a $277,227 savings from correcting a pension rate setup. The board instructed staff to return with calculations on specific personnel actions, including school bus drivers, correction of sworn officer stipends, and costs to implement step increases for public safety staff.

- ADA study vs. coordinator: Human resources proposed a $14,000 consultant assessment for Americans with Disabilities Act (ADA) compliance and an alternative to classify a permanent ADA coordinator position (grade 7, step 1 plus fringe, estimated at about $57,000). Commissioners placed $57,000 in the draft budget as an earmark for possible conversion to a full‑time ADA coordinator pending further discussion and classification detail (see separate article on that vote).

- Enterprise funds and fees: Staff reviewed enterprise funds (recreation and parks, Wicomico Shores golf, solid waste and recycling, fuel operations and miscellaneous revolving funds). Highlights included a package of proposed expense reductions and accounting realignments at Wicomico Shores Golf that staff said could reduce the golf subsidy request, proposed elimination of interest charges on the golf interfund loan (requiring principal only), and a decision to defer a proposed solid waste fee increase until 2017 to allow further analysis. Commissioners directed staff to review enterprise fees and to consider customer‑facing changes such as online payments to reduce late fees and improve service.

- College of Southern Maryland (CSM): Commissioners signaled support for a request to help fund CSM indirect costs ($262,339 was discussed) and asked staff to identify why enrollment and revenue had declined.

Other actionable directions included staff research on a grant management system, follow‑up on gymnastics center equipment priorities, and more precise calculations for public safety step increases funding and for a possible constant‑yield change to property tax rates.

What was decided

- Staff will return next week with updated state aid numbers, refined cost estimates for school negotiations, and revised capital improvement plan impacts. - The board left $57,000 in the FY2016 draft budget as an earmark related to a possible ADA coordinator (no hiring action executed; see ADA article for vote details). - Commissioners deferred a decision on the Board of Education lease payoff and other school funding allocations until they have final state aid numbers.

Background and next steps

Commissioners scheduled a final round of work‑session updates ahead of a May 12 meeting that is expected to include the board’s first budget action and the setting of tax rates. Staff will supply updated spreadsheets reflecting the directions taken April 27 and will bring back the capital improvement program and any remaining enterprise fund adjustments at the next meeting.

Ending: Commissioners closed the session after confirming next‑week follow up items and thanking staff for the updated draft materials.