Committee backs FY26 pay packages and unanimously recommends collective‑bargaining agreements to full council

County staff presented the FY26 compensation and benefits package and told the Government Operations and Fiscal Policy Committee that compensation costs remain the dominant driver of the tax‑supported operating budget.

Staff said the executive’s recommended tax‑supported operating budget totals about $6.647 billion (a 6.8% increase over FY25) and that employee compensation and benefit costs account for roughly 72% of tax‑supported agency expenditures. The executive’s recommended county‑government compensation increase is about 7.1% above FY25 levels when annualized.

Staff outlined general wage adjustments the executive proposes for FY26: 4.85% for FOP (Fraternal Order of Police) members, 3.25% for IFF units and 3% for McGeo non‑represented employees. Staff also called out service (step) increments at about 3.5% and identified several targeted differentials and pay items — for example, expanding the allowable personal patrol vehicle (PPV) radius beyond the county border has an estimated annual cost of about $593,000, a K‑9 shift differential increase of roughly $400,000 and a field‑training pay differential near $85,000.

Staff warned that retirement and group insurance costs are growing faster than salary costs: the packet lists an approximate $71 million recommended contribution for the Employees’ Retirement System (ERS), about $20 million for the retirement savings plan (RSP) increase and roughly $12 million for the GRIP cash‑balance plan. Active‑employee group‑insurance tax‑supported requests were listed at about $586.3 million (a 13.3% increase). Staff also said the MCPS request includes $40 million to address a structural deficit in that system’s group insurance fund; MCPS and staff described phased employee premium cost‑share changes that begin in January 2026.

Committee members who spoke — including Council Member Friedson and Council Member Katz — voiced support for providing competitive pay to recruit and retain staff and first responders but stressed the need for a longer‑term plan to align recurring compensation growth with projected revenue. “We have to do right by our public employees... but we also need to address the rate of growth of county government,” Council Member Friedson said.

Staff presented modeled reduction scenarios for committee consideration: lowering the GWA by 1% across groups (estimated $32.9 million savings), lowering to a 2% GWA (estimated $41.5 million savings), eliminating service and longevity increments for the year (estimated $55.5 million savings focused on MCPS in the packet example), and a countywide cost‑share shift that would save an estimated $4.1 million by FY28 if implemented and annualized.

On the collective bargaining agreements, staff summarized the status of unit negotiations and the required committee resolutions under Chapter 33 of the county code. The FOP agreement was presented as newly renegotiated for FY26; IAFF and McGeo were described as later‑year items in their respective cycles. After discussion, a motion was made and seconded to recommend adoption of the county‑government collective bargaining agreements to the full council; the committee voted unanimously to recommend adoption.

Committee staff noted a corrected packet will be submitted to fix a few numeric errors that appeared in the materials.

Next steps: the committee’s recommendation moves the collective bargaining resolutions and the compensation matters to the full council for final consideration; staff will submit corrected packet materials ahead of the council’s review.