Allegany County previews FY26 budget, commissioners vote to hold property tax rate flat

At a public preliminary budget hearing, county finance staff presented a $113,000,696.28 budget outlook for fiscal year 2026 and outlined revenue and expenditure changes that shaped the draft plan. After discussion, the Board of Commissioners voted to rescind a previously advertised 2¢ real-property tax increase and keep the current rate unchanged for FY26.

The presentation by Mr. Bent, the budget presenter, laid out key revenue drivers and cost pressures: an estimated $4.7 million increase in property tax revenue (driven by roughly 6% assessment growth and the proposed 2¢ rate that commissioners later pulled), a projected decline of $816,000 in state disparity grant tied to a teacher pension shift, and anticipated increases in employee health insurance and pension contributions. “I—d caution that you never wanna use any fund balance,” Mr. Bent told commissioners when explaining the county—s planned use of reserves; he also said staff had budgeted about $1.8 million from reserve fund balance to smooth FY26 operations.

The budget presentation explained that the county originally projected a $5.7 million loss under the governor—s recommended budget but that later state guidance reduced that exposure. Staff described several state-driven changes that increased county costs, including a move to shift more of the Department of Assessment and Taxation (SDAT) local office cost to counties and the phased transfer of a supplemental teacher pension grant. Mr. Bent said the county built in a 16% increase in health-insurance costs and an 11% rise in state-determined pension contributions for employees.

Why it matters: county staff said moving the income tax rate to the state-identified maximum (3.2%) unlocks additional disparity grant funds estimated to add about $5 million annually for FY27, but staff and commissioners stressed that those gains depend on the state—s final budget and formulas. County Administrator Jason Bennett and finance staff told the board they are lobbying at Annapolis on the county—s behalf and warned that state changes could leave Alleghany County with a shortfall next year if the disparity funding changes.

Formal action on the advertised property-tax increase took place during the same meeting. Commissioners had advertised a hearing on a proposed 2¢ real-property rate increase (the required public notice had run). After discussion, a motion to amend the proposed increase to a 0¢ change carried. The board—s clerk recorded the vote as "All in favor," and the measure passed with no recorded opposition.

Budget context and major line items: staff showed that education (the county—s board of education allocation and Alleghany College of Maryland) still comprises the largest share of appropriations (about 38%). Public-safety spending has grown in recent years and now includes items such as the detention center, EMS, 9-1-1, and sheriff operations; staff said those line items had seen the largest growth. The county also highlighted its revolving building fund (revenues from leased shell buildings used for economic development) and noted debt-service changes that cause a one-year blip due to earlier refinancing decisions.

Next steps: staff said the hearing held that evening was the preliminary budget hearing and that a second public hearing will be scheduled (May 15) before final adoption, which must occur by law by June 30. Mr. Bent said the county aims to adopt the budget on May 29, and the county will post the budget documents online for public review before adoption.

Ending: Commissioners and staff emphasized ongoing uncertainty tied to state budget actions and said they would monitor revenue changes and update the board. County Administrator Jason Bennett and finance staff will return with additional detail at upcoming meetings and will continue outreach to state legislators about disparity funding.