Queen Anne's County proposes FY2026 budget with $8.3M boost for schools and $47.2M in capital projects

Queen Anne's County finance staff presented the county's proposed FY2026 operating and capital budgets at a public hearing in Sellersville, outlining an $8.3 million net increase for the Board of Education and a six-year capital improvement program that totals about $465 million, with $47.2 million budgeted for FY2026.

The presentation said the $8.3 million increase for the Board of Education includes $7.6 million above the county's maintenance-of-effort (MOE) requirement and $644,000 tied to state cost shifts for teacher retirements. Presenter (Finance staff) told the audience that the state has fallen behind the planned funding in the Blueprint for Maryland education plan, leaving counties to shoulder part of the shortfall.

County staff framed the operating budget around continued employee cost-of-living increases, no new county positions next year, and a projected 8.8% increase in total revenues compared with FY2025. The presentation showed property and income taxes each account for roughly 43% of operating revenue, and that the county's current property tax rate is 83 cents per $100 of assessed value and includes a 5% homestead tax credit for owner-occupied homes.

On the expense side, education remains the largest component at 43% of expenses; public safety is listed at 24%. The presentation highlighted planned departmental changes: a reorganization to merge animal control and animal services into a single unit and a split of Community Services into separate departments for Housing & Family Services and Aging & Transportation, with projected annual savings of about $200,000.

Capital spending and projects

The proposed FY2026 capital program in the presentation allocates $16.5 million to general county capital projects, $22.0 million to enterprise and special revenue fund projects, and $8.5 million for Board of Education capital needs, for a total of $47.2 million next year and an approximately $465 million six-year CIP. Specific FY2026 capital highlights presented include:

- $8.5 million for Board of Education projects, including partial roof replacement at Mattapax (Mattapeak) Elementary School, HVAC work at Kennard Elementary, storefront replacement at Bayside Elementary, classroom and IT hardware, furniture replacement and stadium lights. - $455,000 for design of a new Queen Anne's Tech Center building at Chesapeake College (design phase supported by participating colleges). - $4.4 million for Emergency Services (about $3.0 million expected from grants) covering a 911 phone center and voice recording system, a new ambulance, radio subscriber replacements and public safety network upgrades. - $1.25 million toward a county goal of $5.0 million in developer exactions to support a regional hospital under construction in Talbot County. - $200,000 for renovations at five housing authority sites and scattered-site homes; $835,000 for capital projects at nine volunteer fire companies. - $500,000 (grant-funded) for design of the Mid-Shore regional detention center and $3.0 million for planning/design of a pedestrian bridge across U.S. Route 50 on Kent Island to connect the Cross Island Trail and South Island Trail. - Parks and recreation: $3.4 million including continuation of South Island Trail development, playground replacement at Mowbray Park, field maintenance equipment and athletic field work; $2.0 million allocated to begin design and contracting for a new recreation center. - Water and wastewater (enterprise): $8.1 million for Southern Kent Island sanitary sewer phases 3 and 4 (user-fee funded), $4.0 million for a water interconnector to complete the backbone between Grasonville and Kent Island (paid through sanitary user fees), and $250,000 for initial planning of the Marvin Farms/Dominion sewer extension.

The capital funding mix presented was: 40% capital fund balance, 25% bonds, 9% grants, 17% loans (primarily MDE loans for water/sewer projects), 8% other sources (for example, developer exactions) and 1% PAYGO.

State funding pressure and MOE

Presenter (Finance staff) emphasized that the state has not met projected contributions under the Blueprint for Maryland's Future and that the county has exceeded its maintenance-of-effort requirement four times in the past seven years, totaling $24 million above MOE during that span. The presenter said the state is roughly $2.2 million below planned funding for the coming year and about $9.0 million behind over the past five years, and that those shortfalls increase county funding obligations.

Public comment highlights

Several members of the public and local representatives spoke after the presentation. Catherine Brooks, a resident of Deep Landing Road near Crumpton, said she was concerned that proposed small increases for the Health Department (2.5%) and Social Services (6.1%) would not meet rising demand and that federal reductions could reduce state support that then trickles down to the county. "To increase it by $12,000 doesn't seem like that's gonna take care of the increased demand for these type of services," Brooks said.

Resident and former teacher Edward Rent urged attention to infrastructure that attracts businesses and to broadening education offerings to include more trade and career-technical options. He suggested restoring classes such as drafting and carpentry and asked whether studies are under way to anticipate infrastructure needs tied to future technologies.

An individual identified as "Dr. Salins" thanked commissioners for previous capital funding to the school district, listing projects including new high school tracks, paving, stadium lights, roofs and stormwater work, and said the district looks forward to moving into a new central office.

Kathleen Lyons, a trustee of the Queen Anne's County Library, thanked the county for support for staff recruitment and retention, the dedicated substitute fund, archival software (PastPerfect), and library-management software that helps program registration and meeting bookings. Raymond Aaron, chairman of Queen Anne's County Fire & EMS, urged residents to visit local volunteer fire stations, thanked the county for support and noted continued interest in keeping the county's vo-tech program available for students.

Shannon Bent, identified as president of the Board of Education, thanked the county and said there will be "no RIFs, no layoffs, no furloughs" in the coming year and that the system expects to keep staff employed.

Commissioners' remarks and next steps

Multiple commissioners spoke briefly. One commissioner reiterated that Social Services and the Health Department are primarily state functions with county support staff, and stated that recent state legislation limits county zoning control over large-scale solar siting and that House Bill 1037 and Senate Bill 932 create a state-level task force on future energy needs. Another commissioner said the Bay Bridge replacement remains a top infrastructure priority and described recent municipal sewage-treatment assistance the county provided to local towns.

Presenter (Finance staff) said the county plans to present a final budget package to the County Commissioners in June at the Liberty Building in Centreville for consideration and adoption. The hearing closed with a motion to adjourn, which was seconded and approved by voice vote.

The proposed budget and full CIP documents are available on the county finance page at qac.org; finance staff invited further questions from residents.