The Commissioners of St. Mary’s County approved a recommended budget plan for fiscal 2026 totaling $348.9 million, a 5.7% increase over the prior year. The budget reflects revenue growth from property and income taxes, the use of strategic fund balances, and continued investment in core public services and infrastructure.
Significant Highlights
- The property tax rate remains at $0.8478, generating $137.9 million, up 3.2% from fiscal 2025, based on projected increases.
- Projected local income tax revenue is $155 million, a 5.1% increase, based on a 5.1% growth estimate.
- The County will use $11.5 million in fund balance for non-recurring costs, while maintaining its 15% reserve policy.
- Highway User Revenue increases to $3.1 million, up $345,000 from last year.
- State and federal grants decline by $1.4 million, offset by reductions in related expenses.
Investments and Operating Priorities
- County employees will receive a 1% COLA, a 1-step merit increase, and the second year of a phased 3.66% market adjustment.
- Sheriff’s Office receives salary enhancements and vehicle replacements, with overall spending up 9.6%.
- The budget funds local education obligations, with the Board of Education receiving $134.4 million, the College of Southern Maryland receiving $5.3 million, and $4.1 million for libraries.
- Public safety staffing expands with the addition of four new paramedic positions.
- The County maintains debt levels and reserve ratios well within policy guidelines, with new capital investment focused on schools, roads, and public facilities.
This plan is not yet final. The County will hold a public hearing on Tuesday, April 22, 2025, at Leonardtown High School, with final adoption set for May 20, 2025.
