State association warns Dorchester County of fiscal strain, urges action on proposed federal grant rules

Michael Sanderson, a representative of the Maryland Association of Counties, told the Dorchester County Council on approach of tonight’s meeting that Maryland faces unusually slow revenue growth and growing fiscal pressure that will affect county budgets and school funding commitments. "The fiscal circumstance for the state is a little tricky," Sanderson said, adding that revenue growth under 1% in recent years has left less room for local priorities.

Sanderson described how state-level choices — including changes to teacher-pension costs and education funding under the state's 10‑year blueprint — have translated into higher county bills for services that are administered by the state. He warned the council that the FY2028 budget cycle would present "a real reckoning" and urged local officials to prepare for difficult votes on spending and potential revenue changes.

He also urged local officials to respond quickly to a set of proposed rewrites from the federal Office of Management and Budget that would change grant-administration rules. "I've heard from tiny nonprofits and our biggest counties who are absolutely mortified at some of the proposals that are sitting from the Federal Office of Management and Budget," Sanderson said, describing concerns about front-loaded funding, match requirements and administrative uncertainty.

County staff told the council the proposed federal rules could have outsized effects on Dorchester County, especially if award timing or leverage ratios change mid-project. A staff member warned that a project could be fully underway and then face altered federal match or reporting requirements, forcing difficult budget decisions and possible program changes at the local level.

After discussion, a council member moved to send a template comment letter drafted by county associations urging a more measured approach; the council approved the motion but directed staff to review and tailor the letter to Dorchester County's specific concerns before sending. The motion passed by voice vote.

The council thanked Sanderson for the presentation and asked staff to continue coordinating with the Maryland Association of Counties and the National Association of Counties on comment opportunities. Sanderson said he expected an iterative federal comment-and-revision cycle and encouraged local governments to submit tailored comments while the rulemaking window remains open.