Howard County executive proposes maintenance operating budget and $2.5 million PAYGO to address possible federal funding cuts

County Executive chief of staff Angela Cabellon told the Howard County Council during a May budget work session that the Office of the County Executive is seeking a maintenance operating budget for fiscal 2026 with a 3.8% increase over FY25, driven mainly by countywide chargebacks such as updated data processing charges. Cabellon said excluding personnel and chargebacks the office's budget rises 0.16%.

Cabellon said the administration is proposing $2,500,000 in one‑time PAYGO funds to respond to emerging federal impacts that could reduce funding for programs such as Head Start, housing assistance and other federally supported services. "We are proposing 2,500,000 in PAYGO funding to be able to address the emerging federal impacts," Cabellon said. Deputy Chief of Staff Felix Bachine and other staff told the council they are monitoring delayed federal payments and contractor impacts and plan to use the PAYGO pool both to respond immediately and to invest strategically.

Why it matters: Council members repeatedly pressed the administration about how the county will track and use one‑time PAYGO funds and whether the amount is sufficient compared with neighboring jurisdictions. Vice Chair Jones and other members highlighted uncertainty in federal budgets and possible cuts to programs that support families, nonprofits and businesses, saying the $2.5 million is intended to provide a flexible bridge as federal decisions unfold.

Cabellon also highlighted non‑budget initiatives linked to economic resilience and youth services. She said the administration chairs an Economic Competitiveness and Opportunity Task Force that is working with the Howard County Economic Development Authority (EDA) on business interventions and cited a newly opened Cyber Howard accelerator as an example of work to expand the tax base. Cabellon described the county's YES (Youth Engagement Strategies) Council as a multi‑stakeholder effort focused on youth engagement and violence prevention; she said the administration has included funding for youth engagement and expects the YES Council and related grant programs to continue.

Council reaction and clarifications: Council members asked staff to explain the drivers of the large chargeback increases; staff said an updated inventory of IT devices after the COVID distribution of laptops revealed more devices assigned to some departments and led to catch‑up charges. Several council members pressed for more detail on how PAYGO funds will be spent if federal cuts materialize, and whether the county will use other reserves in combination with PAYGO. Cabellon said the county will pair immediate flexibility with task‑force recommendations to target supports where needed.

Outlook: The administration characterized the FY26 request as largely maintenance while setting aside one‑time funds to manage fast‑moving federal risks and continuing investment in youth engagement and economic development programs. The council signaled it will press for continuing transparency on how one‑time PAYGO and chargeback changes are tracked and reported.