County environment department warns of large enterprise fund deficits; committee questions service cuts

The Prince George's County Department of the Environment (DOE) presented its proposed fiscal 2026 budget to the Transportation Infrastructure Energy Environment Committee and outlined a series of structural funding challenges the agency says will require service prioritization and program cuts.

"The proposed budget for the Department of the Environment for fiscal year 2026 is $265,200,000," Alex Hertel, the county's legislative budget and policy analyst, told the committee. Hertel said that represents a $5.6 million increase over the prior year and that enterprise funds make up roughly 94.6% of the department's funding. He also told members the department requested a $571,900 supplemental for FY2025 for overtime at the animal shelter and other costs.

Hertel and DOE staff described three enterprise funds with pressure: solid waste, stormwater and local watershed protection. Hertel said the combined enterprise funds for those services are "expected to exceed a combined deficit of $327,000,000 in fiscal year 2026," a figure he and other officials said is driven by higher operating costs, landfill maintenance and uncertain federal and state grant revenues.

Committee members asked detailed questions about how solid waste services are funded and about possible impacts to curbside collection. Hertel explained the solid waste fund draws on a system benefit charge paid by residents and additional fees for curbside collection; commercial haulers and some curbside contractors pay tipping fees at the landfill, though Hertel said the county negotiated waivers for some haulers in exchange for expanded curbside services.

"Our rate right now is still lower than most area jurisdictions," Hertel said of tipping fees, noting a $77-per-ton rate instituted in January and a planned increase to $85 per ton on July 1.

Stormwater funding drew repeated committee attention. DOE officials said the fee structure currently in place (a rate described in the meeting as roughly five-and-a-half cents per $100 for most of the county, lower in a southern portion) is inadequate to cover long-term stormwater capital needs. Committee members were directed to forthcoming stormwater fund briefings planned by the administration and task force.

The department also told the committee it will pause the rain-check rebate program in FY2026 to redesign the program for better uptake. Director Early (county executive's office/DOE administration) said roughly $300,000 is currently budgeted for that program and typical annual expenditure has been about $175,000 to $200,000. The pause, department leaders said, is designed to allow retooling of the program with partner Chesapeake Bay Trust and to shift contractor work rather than lay off county staff.

Committee members pressed DOE for progress on landfill methane capture and monetization. DOE staff said they are preparing to negotiate with the top three bidders for a methane collection and monetization facility at the Brown Station Road landfill and hope to begin negotiations within weeks, with an award possible in the following months.

Animal services was another recurring subject. DOE officials said they plan to hire an in-house veterinarian pending council approval, are proposing kennel improvements, and are seeking bond funding for facility upgrades while they continue to plan a north-county shelter. DOE reported improvement in live-release rates to about 80% (up from roughly 40% in prior years) and noted continuing staffing challenges and high turnover in lower-paid animal care positions.

Other budget details included a proposed decrease in grant funding for FY2026 (Hertel reported an anticipated grant funding drop of roughly 54.6% driven by uncertain federal/state and foundation funding), and a departmental reorganization to add climate and energy and community engagement divisions. The county climate officer, DOE said, was hired in March 2025 and the administration plans to convene an interagency climate committee.

Committee members asked for follow-up materials, including more detail on tipping-fee waiver practices, a write-up on methane capture procurement, and a response to questions from the Solid Waste Advisory Commission. DOE officials said they would provide follow-up briefings and coordinate with council offices on outreach and program clarifications.

No formal committee action or vote on the DOE budget occurred in the meeting; the session consisted of presentation and Q&A.