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County staff brief committee on governor’s proposed budget; members flag program cuts and federal uncertainty

2134571 · January 21, 2025
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Summary

County budget advisers reviewed the governor’s proposed FY26 budget, highlighting revenue and spending changes, proposed tax‑cut structure, and potential county impacts from cuts to development disabilities services and education program changes.

Prince George’s County budget advisers Daryl Barnes and Jimmy Tarlow briefed the General Assembly Committee Jan. 21 on the governor’s proposed FY26 budget and its potential impacts for the county.

The advisers said the governor’s operating plan totals about $67 billion and balances through a mix of roughly $2 billion in reductions and efficiencies and $1 billion in increased revenues, plus a proposed $500 million transfer to the rainy day fund. They warned of a remaining financing gap and noted the administration’s plan includes income tax changes that would double standard deductions and compress lower tax brackets, along with new or increased fees (for deliveries, vehicle inspections and other items) and a 1% surcharge on capital gains for high‑income households.

Presenters cautioned the committee that cuts proposed in the governor’s plan — such as reductions to the developmental disabilities administration and changes to funding tied to multilingual learners and community schools — could have downstream effects on county services and that some revenue changes may not be realized until the following fiscal year. Daryl Barnes summarized local capital items included in the governor’s capital plan for the county, including funds for the Purple Line, Suitland Parkway and local medical center projects.

Council members pressed presenters about potential federal policy changes and the risk of reduced federal grant funding, which finances a substantial share of local services. Council member DiNoga warned that reductions in provider payments could make it harder to staff developmental disabilities services. The committee received the briefing and asked staff to continue monitoring budget developments as the state process unfolds.