Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Policy topic
No spam. Unsubscribe anytime.
Budget officer defends heavy PAYGO use; says PPI fund, debt service and SDAT shifts shape FY27 non‑departmental budget
Summary
Budget Officer Chris Trumbauer told council PAYGO reduced the county's bond program, supported capital projects and helped hold down debt‑service increases; he also warned that state shifts (SDAT) are moving administrative costs to local government.
Chris Trumbauer, the county budget officer, told the Anne Arundel County Council on May 20 that the administration has used pay‑as‑you‑go (PAYGO) funding to smooth capital investments and limit near‑term increases in debt service.
Trumbauer described the PPI (Permanent Public Improvement) fund — the tenth‑of‑a‑percent income‑tax increment that repays $250 million in PPI bonds used to advance capital projects — and said continuing PAYGO allocations have allowed the county to keep debt‑service growth modest. He said that the administration intentionally used one‑time fund balance and overachievement of revenue to support the capital program while projects were large and inflationary; that approach contributed to the county’s high credit rating, he said.
On state‑level shifts, Trumbauer and budget staff explained that the State Department of Assessments and Taxation (SDAT) has been shifting more of its cost to counties; Steven from the Budget Office estimated the county now bears roughly 90% of SDAT‑related costs and that only a small percentage remains to shift. Trumbauer said mandated grant accounting in the budget reflects state cost shifts for SDAT and teacher/community‑college retirement reimbursements.
Trumbauer also reviewed several non‑departmental items: an incremental $3 million contribution to the rainy‑day fund (keeps the fund at roughly 8% of operating revenues after higher interest income), a reduced OPEB contribution due to market performance and accounting changes, and accounting for tax‑increment and special‑tax district receipts tied to capital projects. On VLT (video lottery terminal) impact aid, he noted programmatic local uses including fire station support and swim‑center funding.
What happens next: Councilmembers can follow up during committee review; Trumbauer offered to circulate further detail on district‑level impact fees and mapping of impact‑fee districts used in the budget book.
