Howard County executive proposes $2.3 billion FY2026 budget, holds tax rates steady

County Executive Dr. Calvin Ball on Monday presented his proposed fiscal year 2026 operating budget to the Howard County Council, asking the council to approve a $2.3 billion spending plan that he said avoids raising property or county income taxes.

Ball said the proposed FY2026 operating budget totals $2.3 billion and represents a 1.6% decrease from FY2025, with the general fund at $1.63 billion. He attributed the overall decline largely to a drop in one-time PAYGO resources while noting modest growth in income and property tax revenues.

The budget prioritizes K-12 education, public safety, health care, housing and nonprofit services. "This budget strives to meet community needs without raising property taxes or income taxes on Howard County residents," Ball said. He told the council the county increased recurring county funding to the Howard County Public School System by $39,300,000 above the state-required maintenance-of-effort level; combined with state and federal funds, Ball said the school system’s total budget will reach about $1.2 billion in FY2026 and the county’s direct investment will be $800 million.

Ball also said the county is committing $6,700,000 to ensure HCPSS pension liabilities remain fully funded and is proposing $1,500,000 in one-time PAYGO funding for school safety and security expenses pending approval by the Maryland State Department of Education. He summarized those items as a cumulative $45,700,000 in new revenue toward school system expenses in FY2026, which he said equals roughly 64% of new general fund revenue growth.

On public safety, Ball proposed total funding of more than $162,000,000 for the Howard County Police Department — a $4,600,000 increase — and said the budget includes nearly $800,000 in one-time funds for equipment, ammunition and the addition of a school resource officer at Guilford Park High School. The Department of Fire and Rescue Services would have a total FY2026 budget of $163,400,000, a 6.6% increase over the FY2025 base excluding prior-year one-time funding; Ball also proposed a $5,000,000 one-time transfer to capital (about $4,500,000 for potential land acquisition for a station and $500,000 for rural cisterns).

Ball proposed $5,000,000 in one-time funds toward the second year of the county’s multi-year $15 million commitment to a 29-bed observation unit at the Johns Hopkins Howard County Medical Center. He said roughly $2,300,000 in opioid-restitution funds would hire two additional peer recovery specialists, help capital costs at Shepherd Pratt’s residential treatment center and expand programming at Highland House, described in the presentation as the county’s halfway house for pregnant women. The county will continue an existing maternal health program with a $125,000 allocation.

The presentation included housing and homelessness investments of more than $10,000,000, with specific line items Ball listed as $2,000,000 for homeownership programs, $2,000,000 for the Right to Purchase program, $1,000,000 for home rehabilitation and financial education, and about $1,600,000 for homelessness prevention. Ball said the budget provides $14,300,000 in operating support to nonprofits through the Community Service Partnership grants and roughly $1,400,000 in youth-initiative funding, including $850,000 in one-time funds for the HOCO Scribe program and $500,000 for the county’s Youth Employment Program.

Economic and workforce development items in the budget include nearly $1,100,000 in one-time funds to the Howard County Economic Development Authority, $5,000,000 in one-time PAYGO to advance nonprofit redevelopment of the Flyer Building in Columbia and county support to expand the summer youth employment program from about 225 students to 300.

Environmental and agricultural programs receive funding as well: Ball proposed nearly $1,000,000 for forest conservation, tree planting and environmental preservation, $100,000 for hazardous tree removal to the Department of Recreation and Parks, and $800,000 in agricultural grant funding (including a $500,000 enhanced agricultural grant program and $300,000 for preservation cost-share and innovation grants).

Capital and facilities items cited in the presentation included partial-year operations funding for the North Laurel Pool (estimated completion in spring 2026) and operations support for the renovated Circuit Courthouse in Ellicott City. The FY2026 budget also implements organizational changes: creating a stand-alone Department of General Services (moving functions from Public Works) and funding the Office of Inspector General, which the council created in December 2024 through council legislation; Ball said the new office would receive nearly $500,000 in its first year for staffing and operations.

To balance the budget without tax increases or layoffs, Ball outlined cost-saving measures: a pause on hiring for about 40 currently unfilled county positions (excluding sworn public safety roles); reducing county health-care premium contributions from 90% to 85% (which Ball said will increase employee contributions by about $20 to $60 per paycheck); cuts to technology, travel, printing and training; an energy-savings policy for noncritical county buildings; and other efficiency measures. Ball said the proposed budget sets aside $2,500,000 in one-time PAYGO funds to respond to unknown federal impacts.

Ball warned of state and federal changes that reduced available resources, saying actions in the 2025 Maryland legislative session shifted costs to local governments. He cited $6,700,000 in pension costs for HCPSS, an additional roughly $1,100,000 tied to a change involving the Maryland State Department of Assessments and Taxation, and about $200,000 for community college employee pension costs — changes he said total about $8,000,000 in unanticipated costs. Ball said new general fund revenue, excluding fee adjustments and one‑time PAYGO use, is approximately $68,500,000 for FY2026.

Ball noted Howard County’s AAA bond rating from all three major credit agencies and described the rating as an indicator of fiscal strength. "We continue to exercise fiscal planning, strategy, and discipline to implement innovative, cost efficient solutions to deliver core services," he said.

The council adjourned after the presentation and said it would reconvene at 7 p.m. for a legislative public hearing on the budget using the same WebEx link.