Howard County Executive Calvin Ball introduced a $2.5 billion fiscal 2027 operating budget, outlining a spending plan that leans into essential services while managing a tightening fiscal picture.
The proposal includes a $1.7 billion General Fund budget, a 6.8% increase over fiscal 2026. Growth is driven in part by stronger-than-expected revenues, including capital gains, alongside continued pressure from rising costs and State-imposed obligations.
The budget holds the line on both property and income tax rates.
“Our fiscal 27 spending plan, my last as your Howard County Executive, ensures that we are providing significant resources to support public education and lifelong learning for residents of all ages,” said County Executive Ball. “At the same time, we recognize the affordability crisis that is burdening many of our families and businesses. Our budget balances these community priorities without increasing property and income taxes on our residents and businesses.”
Education Drives Spending Growth
The budget directs $871.5 million in recurring County funding to the Howard County Public School System, a $57 million increase and the largest annual increase in County history.
That level of support exceeds the State’s Maintenance of Effort requirement by $60.8 million and funds 99.3% of the school system’s request. Total school system funding reaches $1.28 billion when combined with other sources.
The proposed budget allocates nearly two-thirds of new General Fund revenue to education spending.
Additional school-related costs include:
- $50.1 million in debt service for school construction
- $7.5 million for retiree health benefits
- $0.7 million in one-time funding for long-term liabilities
The proposed budget also absorbs continued State cost shifts, including teacher pension obligations and pre-K matching requirements.
Public Safety and Emergency Services
The proposal increases funding for the Police Department by $9.3 million to support staffing, equipment, and new system investments.
Fire and Rescue receives $168.9 million from the Fire Fund, including funding for staffing and equipment, as well as a transfer to capital projects tied to a new fire station and rural infrastructure.
Additional funding supports:
- New deputy sheriff positions for courthouse security
- Additional correctional officers
- Targeted positions in the State’s Attorney’s Office and courts
Health and Human Services
County Executive Ball’s fiscal 2027 budget includes a mix of ongoing and one-time investments in health services, including:
- $5 million toward expansion at Johns Hopkins Howard County Medical Center
- $3.1 million in opioid restitution funding for treatment and recovery programs
- $200,000 for mobile crisis response services
- $691,000 for maternal and community health programs
The County also continues funding for youth services, wellness centers, and community-based programming.
Housing and Community Services
The proposal allocates more than $10 million for housing initiatives, including:
- Homeownership assistance
- Affordable housing preservation
- Rental support for students
- Homeless services
An additional $1 million supports the Housing Opportunities Trust Fund, and funding for a non-congregate shelter project continues.
Community Service Partnership grants total $15.2 million, a 6.7% increase.
Economic Development and Workforce
The proposed budget includes $1.1 million in one-time funding for economic development programs focused on business growth, commercial revitalization, and workforce support.
Additional investment supports:
- Apprenticeships and workforce training
- Summer youth employment programs
- Support for residents affected by federal workforce changes
Infrastructure, Environment, and Transportation
The proposal includes more than $12 million in one-time transportation funding, primarily for road resurfacing and multimodal improvements.
Other investments include:
- Transit service expansion
- Sustainability initiatives and clean energy programs
- Agricultural grants and programming
- Parks and recreation improvements
Fiscal Pressures Remain
The proposed budget reflects a growing list of external pressures.
Howard County will absorb $7.4 million in new State cost shifts in fiscal 2027, building on nearly $9.3 million shifted in fiscal 2026. Combined, those changes add more than $16 million in new local costs over two years.
Federal workforce reductions and broader economic uncertainty also present risks. With a significant share of residents tied to federal employment or contracting, revenue impacts may emerge over time.
The proposed budget allocates $1.5 million to address potential federal and economic changes.
Economic Outlook and Credit Strength
Recent revenue performance remains strong, driven in part by capital gains and steady property tax collections. At the same time, the County continues to watch its labor market closely.
About 11% of Howard County residents work directly for federal agencies, with many more tied to federal contractors or nonprofit organizations that rely on federal funding. Those connections leave the County exposed to federal workforce changes that may take time to show up in revenue data.
Even with those risks, Howard County again maintains a AAA credit rating from all three major rating agencies, a distinction it has held for eight consecutive years and one shared by only a small group of jurisdictions nationwide.
Next Steps
The Howard County Council will now review the proposed budget through a series of public hearings and work sessions before passing a budget on or before June 1.