Advisory panel urges Howard County to bank one‑time gains, limit recurring spending to 4%

The Howard County delegation heard recommendations March 25 from the Spending Affordability Advisory Committee (SAC), which warned that temporary revenue gains for fiscal 2027 mask longer‑term risks and urged caution in setting recurring budgets.

"We are suggesting that we build our budget around a 4% growth," a SAC committee member told the delegation, adding that the panel would place the roughly 2.3 percentage‑point difference (about $35,000,000) between the committee’s 4% prudent baseline and the staff‑projected 6.3% increase into reserves.

Why it matters: The committee described three primary revenue drivers—county residents who work and pay income taxes, local job growth, and real estate values—that together account for roughly 80–90% of county revenues. Presenters said two of the three (population/workforce and employment) are under stress from slow growth and declines in federal employment, while real estate valuations remain relatively strong but are shifting toward more multifamily development that typically yields less tax revenue per unit.

Richard Clinch, an economist who said he…