DLS briefing: Eastern Shore to see larger state education aid but counties face cost shifts in governor's proposal

Annapolis, Feb. 7 — Department of Legislative Services analysts told the Eastern Shore delegation on Friday that state aid for fiscal 2026 would increase overall for the region but that the governor's budget proposes shifts that would raise costs for county governments.

Valerie Monroe, an analyst with the Department of Legislative Services (DLS), said the nine Eastern Shore counties together would receive about $900 million in state aid in FY26, with roughly $826 million going directly to local governments and about $77 million in retirement payments. DLS said that represents about a $48 million increase over the prior year in the totals presented to the delegation.

The briefing emphasized a split picture for local revenue. "Local property tax revenue is driven primarily by growth in the property tax base," Monroe said, pointing to county-by-county differences: Queen Anne's, Talbot and Worcester counties have the highest per-capita assessable bases, while Somerset and several others have much lower bases. DLS noted Talbot County's increase in its real property tax rate produced an average annual property-tax revenue rise of 11.4% over a two-year period, well above the statewide average of 5.2%.

Why it matters: DLS told the delegation…