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 million (operating ~$394.2 million; capital ~$110.7 million). - General fund: $323,115,430; property tax revenue estimated at $164.2 million (about 51% of the general fund); income tax estimated at $130 million (about 40% of the general fund). - State revenue shifts called out by county staff: a $3,000,000 estimated reduction tied to changes in standard deduction amounts used to compute taxable income; $543,830 in reductions tied to assessment and taxation administrative costs shifted from the state to the county; an estimated $10,000,000 reduction in highway user revenues tied to historical state funding changes. - Education and public safety: Combined represent about 71% of the general fund budget (~$228.2 million). Washington County Public Schools (WCPS) was listed as the single largest expenditure at $122.8 million (38% of the general fund). The county stated the overall increase to WCPS funding from FY25 to FY26 is $12.7 million (about 11.5%), citing a combination of state-mandated "blueprint" funding and pension cost shifts. - Personnel and benefits: The proposed budget includes a 1% cost-of-living adjustment (COLA) and a 2.5% step increase for employees, a 1% COLA for retirees, and salary-scale decompression funding for civilian staff. - Debt and capital: The FY26 capital budget is $110.7 million and the 10-year plan totals $880.9 million. The presentation assumed issuing $14 million in tax-supported bonds and $8.3 million in self-supported bonds for FY26. County staff highlighted major capital projects including a replacement elementary school on Downsville Pike, Eastern Boulevard and Wright Road improvements, continuation of pavement maintenance, renovations at 540 Newnan Parkway for patrol administrative services, detention center facility improvements, the next phase of the public safety training center (including a tactical village and indoor firing range), water/wastewater plant upgrades, airport terminal and air traffic control tower projects, and landfill cell construction and partial capping. - Enterprise funds and user fees: The county described five enterprise funds (airport, transit, BlackRock Golf Course, solid waste, water quality) with a combined proposed budget of $44.9 million and noted proposed user-rate increases: 5% for water, 3.5% for sewer, and various increases to permit, tipping and administrative fees. - Bond rating: County staff said all three rating agencies (Fitch, Moody's and Standard & Poor's) have affirmed an AA+ rating on Washington County debt, and county presenters linked that rating to the county's fiscal practices and reserves.

Public comment highlights

The hearing moved to public comment after the staff presentation. Speakers included union and nonprofit leaders, civic advocates and candidates. Their remarks reflected praise for some county allocations and criticism on others.

- Billy Woods, identified in his remarks as a vice president of a local firefighters' organization, thanked the commissioners for continued public safety funding and described recent fundraising and charitable activity by local firefighters.

- Curtis Ray, introduced himself as a candidate for county commissioner for 2026, criticized the budget presentation and the use of bond financing. "We're taking out credit card debt," Ray said, arguing that repeated bond issuances shift costs to future generations and expressing skepticism about the county's AA+ rating and budget presentation.

- Carol Mallon, president of the Washington County Teachers Association, urged the commissioners to treat school employees as partners in county infrastructure and to consider unmet needs in schools including overcrowding, deferred maintenance and unfilled positions. She noted that the Blueprint law requires increased local funding for schools and asked the board to consider using any FY26 surpluses to support school staffing and facilities.

- An unnamed speaker raised concern about the citizens' guide to the budget being reduced from 24 pages in prior years to a 12-page document and asked the county to restore the longer format to aid public understanding and comparison across years.

- Ed Lowe, president of the Washington County Commission on Aging, thanked the county for sustained funding and invited commissioners to the commission's annual meeting.

- Ethan Love (identified in remarks as Ethan Love) placed the local budget conversation in the context of what he described as an emerging state budget shortfall, referenced the state "Blueprint" school funding package and urged the public and local officials to hold state leaders accountable for funding decisions that shift costs to counties.

Actions and outcome

The session was a public hearing; the transcript records no formal adoption or vote on the FY26 budget or tax rates during the hearing. At the end of the public comment period the board moved to adjourn; the motion and second were not named in the transcript and a verbal "Aye" was recorded when the chair called for the vote.

Context and next steps

County staff said the FY26 proposed budget was presented as balanced under the proposed tax rates and reflected the county's assessment of state-imposed cost shifts and local priorities. The public hearing is part of the statutory process and public input will be part of the board's subsequent budget deliberations and any formal vote to adopt the budget and set tax rates.

Sources: presentation and staff remarks by Michelle Gordon (county administrator) and Kelsey Mace (chief financial officer); public comments from Billy Woods, Curtis Ray, Carol Mallon, Ed Lowe, Ethan Love; county budget materials referenced during the public hearing.