Prince George’s Proposed Budget Confronts Cost Shifts, Federal Uncertainty

Acting Prince George’s County Executive Tara Jackson unveiled her proposed fiscal 2026 budget, outlining a strategic approach to addressing a significant budget shortfall while protecting essential services and advancing key priorities for Prince Georgians.

The proposed $5.4 billion budget balances fiscal discipline with targeted investments in education, public safety, infrastructure, economic development, and environmental sustainability. To navigate these challenges, county leaders prioritize long-term stability while safeguarding critical services and community investments.

From the Press Release:

“Our County is facing an incredibly challenging budget cycle, driven by increasing state-mandated funding obligations and economic uncertainty at the federal level,” said Acting County Executive Jackson. “However, we have taken a responsible and targeted approach to ensure that essential services remain intact, investments in our communities continue, and our fiscal future remains strong.”

Prince George’s County faces a budget deficit of $130-$170 million in fiscal 2026 due to: 

  • State Cost Shifts: The County’s contribution to the Blueprint for Maryland’s Future (Kirwan) increased by $45 million, bringing the total local share to $954 million. Additional state budget actions may further increase this obligation.
  • Federal Uncertainty: The County is home to 73,000 federal workers, and mass layoffs could significantly impact local income and property tax revenue.
  • Revenue Growth Not Keeping Pace with Expenditures: While total revenues are growing by 1 percent, expenditures are rising faster, requiring strategic reductions and financial realignment.

See the full budget presentation below. 

As Prince George’s County works to close a $130-$170 million budget gap, its experience underscores MACo’s concerns: revenue growth isn’t keeping pace with rising expenses, and federal uncertainty only compounds the challenge. State cost shifts further strain local budgets, forcing tough choices on essential services, capital projects, and workforce retention.

MACo Coverage on Costs Shifts and Increasing County Budgets: