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Queen Anne’s County presents FY26 budget proposal with 8.8% revenue increase; no tax rate change proposed
Summary
County administrators proposed a $209.1 million FY26 operating budget with an 8.8% increase in revenues, a $7 million increase above maintenance-of-effort for the Board of Education and no proposed tax rate change; commissioners scheduled three work sessions and public hearings ahead of a June adoption vote.
County Administrator Dan presented the county administrator’s proposed FY26 operating budget Tuesday, proposing $209,100,000 in revenue — an 8.8% increase over the current year — while recommending no change to the county property tax rate.
The proposal projects 12.7% growth in assessed property tax revenue and 4.1% growth in income tax collections. County staff said property and income taxes together would make up about 85.6% of the county’s revenue base.
The nut of the proposal is a requested increase in local funding for public schools. The budget includes an $8.3 million increase for the Board of Education, of which $7.0 million is presented as an increase above the maintenance-of-effort (MOE) level and $1.3 million reflects a state pass-through for teacher pensions. Officials said some of the pension-related increases are a state requirement and are expected to continue in future years.
County Finance Director Jeff Frank and other budget staff outlined the administration’s assumptions and highlights. The administration described the FY26 package as balanced without a property tax rate increase and noted it includes pay-for-performance and a cost-of-living allowance for county staff.
The budget request includes $14.9 million in department enhancement requests; county administrators said they preliminarily recommended about $9.5 million of those enhancements for inclusion in the proposed FY26 budget. The administration said roughly $1.7 million of requested enhancements are anticipated state pass‑downs (including staffing tied to a second circuit court judge and other state-mandated costs).
On the capital side, highlights in the proposed six-year Capital Improvement Program include $8.5 million for Board of Education projects (roof and HVAC work, IT/network upgrades, athletic facilities), $4.6 million for emergency services (including part of a new 911 phone center), an allocation toward a new regional hospital ($1.25 million this year of a multi-year commitment), and funding for parks, public works and housing authority projects. The Southern Kent Island sewer extension, including Phases 3 and 4, is listed among the sanitary projects in the CIP.
County staff said the recommended funding mix for the capital program in FY26 would rely on capital fund balance (35%), bonds (25%), grants (16%), MDE loans (15%) and other sources for the remainder. The administration also noted plans for short-term rental tax and permit management changes intended to capture an estimated $150,000 in accommodation taxes in FY26.
The commissioners scheduled three public work sessions in the coming weeks and three public hearings on the proposed budget; staff said the county plans to release a finalized budget for public review on April 30 and aim for final adoption at the June 10 commissioners meeting.
The county framed the FY26 proposal as trying to preserve service levels while responding to state-mandated cost shifts and increasing personnel costs.
Ending: The board directed staff to continue detailed review in the scheduled work sessions. Final budget adoption is expected in June after the public hearing cycle and the commissioners’ deliberations.
