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Howard County projects 4.9% general‑fund growth for FY26 but warns of federal exposure and one‑time revenue decline

3198469 · May 5, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

County budget staff on Monday outlined a proposed FY26 general‑fund budget that would grow 4.9% (about $71.7 million) from the prior year but relies in part on one‑time and volatile revenue sources and faces downside risk from possible federal workforce reductions that could hit local income tax receipts.

Howard County budget officials told the County Council on Monday that the proposed FY26 general‑fund budget totals about $1.6 billion and represents a $71.7 million, or 4.9%, increase over the prior year.

Holly Sun, the county’s budget administrator, said the proposal does not assume any property‑tax increase. "The final proposed budget for general fund is $1,600,000,000 once excluding use of fund balance," Sun told council members, adding later that the net increase of $71,700,000 is intended to support the base budget for public services and locally funded education costs.

Sun and council members spent much of the session discussing the forecast’s assumptions and the risks behind them. The administration is relying on a mix of mostly recurring revenues (property and income taxes), a $0.75 per‑line monthly increase in the 9‑1‑1 fee (expected to…

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