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Mako warns counties of looming state fiscal pressure and possible cost shifts affecting local budgets
Summary
Mako executive director delivered an annual briefing to Calvert County commissioners detailing state fiscal pressures, possible future cost shifts (including pension-related invoices to counties), education 'Blueprint' funding timing, and energy and housing challenges that may require local responses in coming years.
Michael Sanderson, executive director of the Maryland Association of Counties (Mako), and Mako president Jack Wilson briefed Calvert County commissioners on Oct. 7 about statewide policy trends the association expects to affect counties over the next two legislative cycles.
Sanderson said the state closed a multi‑billion dollar shortfall by combining new revenues and cost shifts, but he cautioned commissioners that a larger fiscal squeeze could reappear in FY 2028 when the state must begin paying more cash for the ‘Blueprint for Maryland’s Future’ education commitments. Sanderson described a pattern in which the General Assembly has used cost‑shift mechanisms that send new or increased obligations to counties (he cited recent pension cost adjustments and other invoiced items as examples) and urged counties to monitor prospective shifts closely.
Mako also reviewed energy and infrastructure topics. Sanderson said capacity and distribution stresses in the regional grid (PJM) and higher demand from data centers and advanced tech facilities are exerting pressure on rates and transmission capacity. He said states and localities are debating siting, transmission, housing and workforce implications tied to energy and data center growth. On housing, Mako warned legislators are likely to renew efforts to accelerate housing approvals and zoning changes to address statewide housing shortages, which could shift planning or approval responsibilities to counties.
Commissioners and Mako staff discussed specific county concerns including energy rates, living shoreline and erosion mitigation, federal and state grants for flood mitigation, and community options to attract or manage economic development. Sanderson said Mako will continue advocacy focused on protecting local control while seeking practical flexibility and state support.
The briefing was informational; commissioners did not take legislative action at the meeting.
