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MACo warns Kent County of fiscal squeeze ahead as education blueprint and energy demand shift costs
Summary
At a Sept. meeting, Maryland Association of Counties executive director Michael Sanderson told Kent County commissioners the state's FY26 position is manageable short term but the 10-year education 'blueprint' will shift costs to the general fund by 2028 and could place new burdens on counties; housing and energy policy in Annapolis also pose risks for rural jurisdictions.
Michael Sanderson, executive director of the Maryland Association of Counties, told Kent County commissioners during a Sept. meeting that while the state's immediate budget picture looks manageable for the next year, larger structural costs tied to the 10-year education "blueprint" will begin to pressure the general fund around 2028. "We can kind of paddle through the next year ahead," Sanderson said, but warned that once trust-fund seed money runs out, the state will face harder choices.
Sanderson outlined how the blueprint was initially funded with dedicated revenues, such as casino proceeds, that created a multi-year cushion. "It doesn't mean 50% of the project costs," he said of the statute's 50% school-construction cost-share, referring to the state's worksheet of eligible costs rather than total project costs. Commissioners in Kent County — a small jurisdiction with limited tax base — pressed him on why their county shows a high local share in the state's wealth formula and expressed frustration at how statewide formulas can leave rural counties shouldering a large portion of capital costs.
Sanderson also warned of other policy pressures likely to reach Annapolis this session: housing mandates aimed at infill and higher-density development, and energy policy driven by surging demand from data centers and other large users. He told commissioners the energy conversation is broader than state boundaries and includes transmission and "middle mile" constraints; local impacts could include new siting pressure for solar and related transmission infrastructure, which some rural officials told the panel would conflict with agricultural land uses.
The MACo delegation said its work is to advocate for county interests in Annapolis and to flag provisions that require local flexibility. Sanderson noted that the blueprint includes an accountability board and an evaluation report due near the end of next calendar year that could inform changes in the plan's implementation. He encouraged commissioners to use MACo as a channel for local concerns as the General Assembly considers bills in the coming session.
