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St. Mary’s County commissioners face roughly $11 million operating shortfall as budget work sessions begin
Summary
County staff presented a revised FY 2016 draft that includes capital project changes and updated revenue estimates; commissioners directed staff to remove one major road project from the draft and identified items that could be funded from one-time sources while noting an estimated $11 million recurring gap.
St. Mary’s County officials opened a March 9 work session with revised capital projects and an updated operating budget that shows an estimated $11 million gap between projected revenues and the county’s modified expense requests.
Finance staff told the Board of County Commissioners the modified expense total was about $226.5 million and that “the net difference between the revenues and expenses at this point in time is about 11,000,000 of a shortfall.” The staff overview attributed some changes to updated fringe rates, health insurance premiums and grant adjustments.
The budget presentation combined a review of the capital improvements plan (CIP) and the general fund; staff said the CIP changes reflect direction the board gave at its Feb. 23 session and updated project cost estimates. Commissioners were shown detail schedules for revenues, fund balances, position changes, vehicle replacements and grant-match obligations.
Budget staff recommended using fund balance for some nonrecurring items and cautioned against appropriating expenditures tied to uncertain revolving-fund revenues. “There are several in the 5:30 fund that I think we should revise based on that,” staff said, urging the board not to establish expenditure authority until cash is on hand for some funds.
Commissioners and staff agreed to continue the process across four work sessions (roughly 14–15 hours of meetings) leading to a recommended budget for public hearings in March. Staff said next steps would include consolidating approved changes, updating revenue/expenditure schedules to reflect any program-specific use of fund balance and incorporating any compensation decisions the board makes in later sessions.
Discussion points included the treatment of grant-funded programs, how personnel-cost adjustments (turnover, pension and health benefits) changed the modified request, and the timing of multi-year CIP items that can make year-to-year totals appear to grow when out-years are added to the plan.
The board did not take any formal votes during the session; it directed staff to remove one major highway project from the FY 2016 draft and to notify the planning commission of that change before tonight’s planning commission meeting.
Officials said they will return to the revenue/expenditure gap after elected-official budgets and department reviews are complete and after the board’s discussion tomorrow on compensation. Staff emphasized the difference between one-time fund-balance uses (appropriate for discrete purchases) and recurring operating costs (which require a stable revenue source).
