Worcester County presents $302 million FY2027 budget; officials cite state cost shifts and updated surplus

County Chief Administrative Officer Weston Young on May 5 laid out Worcester County's advertised fiscal year 2027 budget and warned that state and federal funding shifts have increased pressure on local finances while also producing late adjustments to the forecast.

Young said the advertised request totals about $302.1 million in expenditures against estimated revenues of $299,118,027 based on March numbers, creating an advertised shortfall of roughly $3.0 million; more recent updates, including a State Department of Assessment and Taxation (SDAT) valuation update, have increased projected property tax revenue by $884,000 and reduced the county's required health-department core funding by about $3.2 million, producing a current projection of a surplus of about $1.3 million. "These numbers are a snapshot in time," Young said, noting the advertised figures were locked in early March and that the May 12 budget work session will review revisions.

Young described three categories of fiscal pressure: rising personnel and benefit costs and capital-equipment needs; state-mandated cost shifts that move pension and other liabilities to counties; and reduced or uncertain federal funding. He singled out Governor Moore's FY27 budget and the state's Budget Reconciliation and Financing Act as drivers of additional pension costs flowing to counties, and said the county can expect ongoing discretionary pressure from the state.

On the revenue side, Young reported FY27 estimates of $299.1 million, with 67.1% coming from property taxes ($200.7 million), roughly 17.7% from income taxes ($53 million) and the remainder from recordation/transfer taxes, fees, grants and investment interest. On expenditures, education is the largest single category at 48.5% of requests ($146.6 million); public safety accounts for about 20.4% ($61.6 million). Young said the Board of Education requested nearly $13 million more for operating costs, including step increases and a $4,000 cost-of-living adjustment.

Young also reviewed enterprise funds for solid waste and the county's 11 water/wastewater service areas. He said the solid-waste fund (proposed FY27 budget $5,494,947) is self-supporting with no general-fund subsidy, while combined water and wastewater budgets total $22,348,447 with $1,148,419 of general-fund support requested for smaller service areas. He outlined proposed rate components and an EDU (equivalent dwelling unit) structure that would scale usage tiers by EDUs per customer.

Young ran through individual service-area summaries (Assateague Point, Edgewater Acres, Mystic Harbor, Ocean Pines, Riddle Farm, River Run, West Ocean City and others), noting a mix of budgeted surpluses and shortfalls and several service areas that plan to use reserves to cover gaps. Ocean Pines, the largest service area, showed a requested FY27 total of $11,567,947 and a budgeted shortfall of about $404,000 proposed to be covered from reserves; Mystic Harbor faces a shortfall the presentation proposed to address with reserves as well.

Young closed by reminding the commission that the adopted budget must be balanced and that staff will continue work in upcoming sessions; he confirmed a May 12 budget work session to review changes. The hearing moved to a public-comment period where residents and stakeholders responded to the presentation and the county's priorities.

Next steps: the commissioners will review the May 12 work session materials and ultimately adopt a legally balanced FY27 budget in a later public meeting.