Dorchester County holds public hearing on FY26 budget as residents press to retain tax differential

The Dorchester County Council held a public hearing May 13 on Bill No. 2025-4, the FY2025-26 Annual Budget and Appropriation Ordinance, and heard sustained public opposition to a proposed elimination of the county tax differential and to a real property tax increase.

Council President George L. Pfeffer, Jr. opened the hearing after Executive Operations Specialist Irene Barnes announced the ordinance under consideration. Pfeffer reported the county's total cash and investments as $29,723,264.42 and told residents that the Qualified Senior Tax Credit had been increased to 10%.

Multiple residents told the council the tax differential should be maintained. "Eliminating the differential will hurt many of our neighbors," said Lajan Cephas, Mayor of the City of Cambridge, who also asked the council to form a revenue committee or task force and read a letter from the Mid-Shore Board of Realtors opposing the proposed changes. Several residents echoed that message: "The differential should continue," said resident Donald Simon. Terra Felts warned the council that the proposed increase "may cause additional foreclosures."

Other commenters questioned the county's fiscal picture. "Dorchester County is the third poorest county in the state," resident Robert Aaron said, opposing the elimination of the differential. In response to questions about audits, Pfeffer said the 2021 and 2022 audits have been completed and the 2023 audit is underway, and he told a resident that the example cited of a tax-bill increase "does not sound accurate." County Manager Jerry Jones clarified eligibility for the senior tax credit, saying applicants must be at least 67 years old and qualify for the homeowners' tax credit.

Not all speakers opposed a tax increase. Resident Tom Hannan said he supported a property tax increase "but taxes should be increased equitably," and Councilman Ricky C. Travers suggested the council reevaluate the proposed increases after hearing public comment.

Councilman Mike Detmer said the push to raise revenue and consider eliminating the differential is driven in part by what he described as state-imposed, unfunded mandates. "The reason we are proposing these changes is a direct result of the State of Maryland's unfunded mandates forced upon counties," Detmer said, and he added that some District 5 constituents have expressed support for eliminating the differential.

The council did not adopt the FY26 budget nor vote on Bill No. 2025-4 at the hearing. Earlier in the meeting the council had approved its consent agenda by unanimous vote on a motion from Councilman Ricky C. Travers, seconded by Councilman Rob Kramer, Jr. The public hearing record was closed following the last public comment and the council reconvened into Open Session; the meeting was adjourned at 7:04 p.m.

The council did not record a final vote on Bill No. 2025-4 during the May 13 session; residents were directed to submit follow-up questions to info@docogonet.com.