Caroline County reports midyear revenues near 50%; officials warn of potential $772,000 disparity grant cut

Deputy Administrator Daniel Fox and Grants Coordinator Stacy Seward briefed the board on the county’s second-quarter budget performance on Feb. 3, reporting that overall revenues are near the halfway mark largely because real property tax collections are realized early in the fiscal year.

Key points included:

- Real property tax collections were near 94% at midyear, driving total revenue to roughly 50% of expected annual receipts at the halfway point. - Business personal property (reported as utilities) and income tax collections lag the schedule and are episodic; building permits and solar-project-related fees have driven some line items higher. - The county received $856 in first-quarter cannabis sales/use tax receipts; 50% of those receipts were described as going to the town of Federalsburg and 50% to the county. - Fox and Seward said the governor’s FY27 budget outline includes a projected $772,000 reduction in the county’s disparity grant (a state per-capita formula-based aid), which would materially affect FY 2027 planning.

On expenditures, staff said most departments track near 50% spending for the half-year mark while noting timing differences (elections, insurance, one-time debt payments). The presenters recommended continued close review and said staff expect to return in about two weeks with further budget work as departments finalize FY 2027 requests. Commissioners asked follow-up questions about taxing treatment for new solar installations, coordination with SDAT (State Department of Assessment and Taxation) and municipalities to trigger personal property assessments, and coding of regional landfill costs to ensure accurate percent-of-budget reporting.