Washington County holds public hearing on proposed FY26 budget; tax rates unchanged

The Washington County Board of County Commissioners held a public hearing on the proposed fiscal year 2026 operating and capital budget, during which county staff outlined a proposed total budget of about $505 million and said the county will not raise the real property or income tax rates for FY26.

County Administrator Michelle Gordon opened the presentation and said the proposed real property rate will remain at 92.8¢ per $100 of assessed value and the proposed income tax rate will remain at 2.95%. "This fiscal year was particularly challenging as we were faced with unexpected cost shifts and revenue reductions from the state of Maryland," Gordon said, identifying several specific state funding changes and mandates that the county says affected the FY26 planning.

The county's chief financial officer, Kelsey Mace, presented the operating and capital details. She said the proposed operating budget totals approximately $394.2 million and the proposed capital budget totals $110.7 million, for a combined total the presentation described as roughly $505 million. The general fund is budgeted at $323,115,430, and taxes are the largest single revenue source across operating funds.

Why it matters: county officials said state-level changes — reduced highway user revenues, shifts in assessment-administration costs and pension responsibility, and the state "Blueprint" funding formula for schools — materially affect Washington County's revenue and expenditure forecasts for FY26. Those shifts have driven larger allocations to schools and public safety and shaped the county's capital plan.

Major budget details presented

- Tax rates: The county proposes no change to the real property tax rate (92.8¢ per $100 of assessed value) or the income tax rate (2.95%). - Total proposed budget: Presentation materials list the combined operating and capital budget at roughly $505…