Calvert County staff present FY2026 draft budget showing $15.4 million gap; commissioners warn of cuts

Calvert County staff on Tuesday presented the fiscal year 2026 staff-recommended operating and capital budgets to the Calvert County Board of County Commissioners, saying the county faces a projected $15.4 million budget shortfall and potential additional state funding changes that could increase the deficit.

The staff-recommended draft is the first formal step in the commissioners’ budgeting process and reflects departments’ level-of-service requests for FY2026. County Administrator Mark Willis told the board this is a staff recommendation and “a starting point from which the Board of County Commissioners will develop a final budget.”

The presentation matters because the projected gap, combined with possible state “realignments,” could force reductions to county services or use of one-time fund balance. Finance Director Bruce Miller said the staff estimate does not include anticipated state adjustments; staff currently expect state realignments to range between $6 million and $12 million and warned that those changes could push the county's total shortfall substantially higher.

Staff described the FY2026 approach as 0-based budgeting, requiring departments to itemize expenditures rather than roll forward prior allocations. Bruce Miller said the recommended draft is built from departments’ level-of-service requests and includes both the operating and capital budgets. He outlined revenue and expenditure estimates and said projected expenditures rise to roughly $402.9 million versus general fund revenues of about $387.5 million, producing the $15.4 million gap.

Mary Andes, acting deputy director of finance and budget, presented revenue details, saying overall revenues are essentially flat year over year (a decrease of roughly $59,000) with notable items including an estimated $6 million increase in property tax revenue tied to higher real property valuations and a $3.5 million increase in income tax estimates. She also summarized major fund groups, enterprise funds and special revenue funds and noted capital spending and grant expectations.

Miller and Andes described balancing strategies the county will consider as the budget process continues: a three-year look-back averaging of expenditures, review of local service requests and court-related services, and evaluation of potential vacancies and attrition. Miller said the draft includes a step increase and cost-of-living adjustments tied to BOCC priorities but that, except for new EMS staffing funded by offset revenues, there are no new regular positions or vehicles in the draft.

Calvert County Public Schools Superintendent Dr. Andre Tounsell presented the Board of Education’s proposal and said the school system’s ask is effectively flat funding from the county compared with the current year. He outlined district priorities, school performance highlights and budget stressors, including the end of ESSER (Elementary and Secondary School Emergency Relief) funding and costs driven by the Blueprint for Maryland’s Future legislation, such as increases in starting teacher salaries and national board certification supplements.

Tounsell said the school system plans to use prior-year savings and underspending to avoid requesting additional local funding and expects the Board of Education to adopt its operating budget by June 12. School-related figures cited during the presentation included an operating commitment estimate of $163.9 million for the county’s school contribution and a school capital improvement plan totaling roughly $33.2 million (about $22.8 million of that in grants), though presenters said state MOE (maintenance-of-effort) numbers were still being reconciled and remain subject to change.

Commissioners responded to the presentation with repeated warnings that the unidentified state actions may arrive late in the county’s timeline and will force difficult decisions. Several commissioners emphasized a preference not to raise property taxes and to avoid using fund balance where possible, saying residents likely will feel reductions in services if the shortfall grows. Commissioners also highlighted a commitment to protect public-safety services where possible; Miller noted new EMS staffing in the draft funded by offset revenues is effectively required for public safety.

Procedural items announced during the meeting included public engagement opportunities: staff said the staff-recommended budget is available on the county website and in print at Calvert County libraries, and the Board of County Commissioners will hold a public hearing on the commissioners’ budget on Tuesday, April 29 at 7 p.m. The board also approved a motion to leave the record open through the close of business on 2025-04-11 to receive additional written comment.

The budget presentation will continue through a roughly six-week process of review, public input and refinement; staff and commissioners said the draft is expected to change before the board adopts its recommended budget later in the spring.