Caroline County officials presented the first-quarter FY26 budget on Nov. 4, reporting $24,707,000 in revenue through September—about 31% of the budget—and an $8.4 million positive variance between revenue and expenses for the quarter.

"So as a whole, we've taken in about $24,707,000 in revenue for the first quarter. It's about 31% of what's budgeted," Deputy Administrator Daniel Fox told the commission. Fox and Grant Coordinator Stacy Seward cautioned that many revenue items and grants bill on schedules that lag the county's fiscal quarter, so percentages for some lines are not yet indicative of year-end results.

Key points presented: real property tax receipts were at approximately 65% (just over $21 million), income tax receipts were low early in the fiscal year (about 3% received due to timing), and interest earnings were running ahead of plan (about 28% of a $2.2 million budgeted amount), though officials said that rate exposure could decline with federal rate cuts. Building permit revenue was higher than budgeted, in part because large permits related to energy projects were being processed.

Commissioners asked staff to provide a separate breakout of business personal property receipts to distinguish traditional utilities (Delmarva Power, Choptank) and long-term private generation projects (solar). "I would just like to see separate the private industry," a commissioner said; staff responded they already track payers individually and will provide a breakdown for commissioner review. Officials noted the state Department of Assessments and Taxation controls timing and reporting of some payments and that solar projects historically have at times lagged in payments before catching up.

Department-by-department expense reviews showed most departments near expected year-to-date percentages; exceptions reflected one-time payments (insurance, maintenance contracts) or reimbursements timed early in the fiscal year. Fox and Seward said the first-quarter cash position is typical for the county and staff will continue monthly monitoring and follow-up on items that depart from expectations.

Commissioners also discussed policy-level concerns that surfaced in the presentation: highway-user revenue that counties rely on is subject to state-level distribution and has been reduced in past years, and several county legislative priorities will seek to restore or protect state–local funding relationships. Staff said they will prepare the requested itemization of business personal property and continue to track grant billings and reimbursements as they arrive.