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Prince George's OMB lays out FY26/FY27 picture, flags a $58.3 million gap and calls for revenue growth
Summary
OMB Director Angela Fair told the county council the FY26 revenue picture totals about $4.8 billion and that, after planned FY27 spending of about $5.0 billion, the county faces a structural gap of roughly $58.3 million. Staff urged agencies to find revenue or reduce expenditures and to protect reserves while the county pursues business attraction to broaden the tax base.
Angela Fair, director of the Office of Management and Budget, told council members at a retreat session that Prince George's County expects roughly $4.8 billion in revenue for fiscal 2026 and is preparing a FY2027 budget to be released March 12. She said most county dollars flow to schools and public safety and that the county must narrow a structural gap projected at about $58.3 million for FY2027 unless revenues rise or spending is cut.
"We plan to submit a budget, March 12. That's the budget release date," Fair said, walking the council through revenue and expenditure assumptions. She said the Board of Education accounts for roughly 61.3% of the county's budgeted spending and that public safety is the second-largest category at about 20%.
Fair told members the county is budgeting conservatively and adding annual cost escalators into capital improvement project estimates because construction costs frequently rise after projects begin. She listed capital spending at about $300 million a year and noted that long-term unfunded liabilities — including pension and risk-management obligations — add pressure to the budget outlook.
Why it matters: The shortfall requires political choices. Council members heard OMB's recommendation to maintain a policy reserve (10% is the stated policy) while pursuing options to close the gap through revenue growth or targeted cuts. Fair emphasized the county's intention to grow its commercial tax base so the burden does not fall more heavily on residents.
Council concerns and follow-up: Several council members pressed staff on the county's liquidity and bond-rating drivers after Moody's downgraded the county last year. Vice Chair Olsen cited rating-agency comparisons that staff summarized as peer jurisdictions holding higher cash-on-hand; OMB staff said the county's measured liquidity was about 20% while some peers report higher operating liquidity. Fair and staff agreed to follow up with more detail about how rating agencies calculate liquidity and what actions would most directly affect the county's rating.
The next steps: OMB will continue agency budget meetings and asked departments for cuts or revenue options, including a targeted 5% reduction request in many agency budgets for planning purposes. The county executive and OMB will work through February on final decisions before the March budget release.
