The Worcester County Commissioners adopted a $281.4 million operating budget for fiscal year 2026, advancing strategic priorities such as education, public safety, and infrastructure, while also reducing the property tax rate.
“This budget increases funding for priorities like education and public safety, and at the same time decreases the property tax rate for our residents,” said County Commissioner President Ted Elder. “Everyone is coming out of this with something.”
The fiscal 2026 budget lowers the real property tax rate by three cents to 81.5¢ per $100 of assessed value. Worcester County will continue to offer the lowest local income tax rate in Maryland at 2.25% and maintain the second-lowest real property tax rate among all counties.
The Commissioners also approved a 0% Homestead Tax Credit cap, set to take effect in fiscal 2027, to help eligible homeowners manage increases in taxable assessments.
Revenue growth helped support the budget’s investments. Property tax revenues increased by $11.7 million, income tax revenues rose by $6 million, and other local taxes, including recordation and transfer taxes, added $1.4 million.
The budget provides a salary step and a $2,500 cost-of-living adjustment for eligible county employees.
The budget includes record funding for the Worcester County Board of Education at $113.8 million — a $7.5 million increase over the prior year. The additional support will cover salary adjustments and rising costs for health insurance, pensions, and other employment benefits.
Public safety also received a substantial funding boost. The Worcester County Sheriff’s Office budget increased by $2.4 million and includes a two-grade salary increase for sworn officers, funding for continuing education, and capital equipment replacements. “We must stay competitive as other law enforcement agencies continue to increase their salary packages,” said Sheriff Matthew Crisafulli.
Emergency services funding includes $2.9 million in fire company grants and $9.6 million in ambulance grants, with supplemental funding allocated to support 10 EMS companies in their operations and personnel costs. Grants to municipalities and the Ocean Pines Association increased by $250,000.
The County also transferred $3.8 million to maintain a 15% reserve fund, a move that supports emergency preparedness and safeguards Worcester’s strong credit profile. The County holds AAA bond ratings from Fitch, AA+ from Standard & Poor’s, and Aa2 from Moody’s — allowing it to borrow at favorable interest rates for capital projects, including the upcoming replacement of Buckingham Elementary School.
The budget allocates funds to a wide range of capital priorities using assigned reserves, including $2.8 million for the Government Center roof replacement, $1.7 million for Pocomoke Elementary’s roof, and $1.8 million for upgrades at the Fire Tower and Training Center, which volunteer fire companies and the Fire Marshal use.
The fiscal 2026 budget reflects a $19.4 million (7%) increase over the fiscal 2025 budget. Although agency and department requests totaled $286 million, the Commissioners reduced the amount by $5.4 million during deliberations to adopt a balanced plan based on current and projected revenue trends.
