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Queen Anne's County moves to cut property tax, boosts school funding in FY27 budget draft
Summary
Commissioners reviewed the proposed FY27 budget, agreed to a $9.3 million local increase for the Board of Education and voted to lower the county property tax rate from $0.83 to $0.80 per $100 assessment as part of the draft budget process. Work sessions and public hearings were scheduled to finalize the plan.
Queen Anne's County commissioners on March 24 reviewed a proposed FY27 operating and capital budget that projects $234.5 million in revenue and includes significant new local support for public schools.
County staff presented highlights of the administrator's draft budget, including a proposed allocation that would increase local funding for the Board of Education by $9.3 million above the prior year and leave the board “whole” while accounting for anticipated state pension pass-throughs. Staff said income and property taxes make up roughly 86% of county revenue and that the draft maintains current tax-rate settings while identifying an overall 12% increase in projected revenue compared with FY26.
After the presentation, a commissioner moved to reduce the real property tax rate by three cents, from $0.83 to $0.80 per $100 of assessed value. The motion passed following discussion of the county’s fiscal position and bond rating; commissioners said the county’s strong reserves, multi-year capital plan and AAA bond rating underpin the adjustment.
Commissioners emphasized the reasons for the board of education increase, noting state funding formulas and pass-downs. County staff told the panel the state is behind on certain education pass-downs under the Kerwin funding framework and that the additional local funding would cover pensions and restore positions previously supported by grants. The budget presenter said county funding would position the school system about $8.6 million above the maintenance-of-effort baseline for FY27.
The county also proposed a 3% cost-of-living allowance and pay-for-performance for employees, and listed seven positions included in the draft with a possible additional seven positions contingent on a second circuit court judge being authorized by the General Assembly.
Commissioners directed staff to continue budget work sessions (with an initial session scheduled for the coming Thursday) and set public information meetings in May in Stevensville, Centerville and Sersville. The commissioners indicated they expect to adopt a final budget in June after work sessions and public hearings.
What’s next: county staff will continue the work sessions, hold public hearings later in April–May, and return with a final proposal for adoption, tentatively targeted for the June 9 meeting.
