CUMBERLAND — County officials say they are bracing for potential negative impacts of the state’s proposed budget.
Gov. Wes Moore on Jan. 15 released a $67.3 billion plan to grow the economy, strengthen Maryland’s labor force, modernize government and fix “what’s broken in our tax system,” he said via press release.
“The budget proposal accomplishes these goals without raising the sales or property tax for the third year in a row, and provides a tax cut to nearly two-thirds of Marylanders,” the release stated.
The proposal “reduces the structural deficit by $2.25 billion for FY 2026, maintains a Rainy Day Fund balance of 8.0%, and flips the projected cash shortfall of $2.95 billion to a positive cash ending balance,” it stated.
However, Allegany County Administrator Jason Bennett said some items in the proposal could add up to a $2 million local burden.
On Thursday, he talked of an $816,053 decrease in a disparity grant from the state used to help financially disadvantaged counties such as Allegany.
“Per the governor’s budget, 50% will be reduced this year and then eliminated entirely in FY27,” Bennett said.
The governor also suggested the county pick up $754,195 for teacher pension costs, which had been paid for by the state and local education board, he said.
“This is actually new to the county,” Bennett said.
He talked of a Maryland Department of Assessments and Taxation shift from 50% to 90% that would cost the county an additional $368,000.
Moore proposed a tax cut for nearly two-thirds of low and middle-income families across the state.
While that would benefit a lot of local residents, “it will have an effect on the income tax we collect,” Bennett said.
“What’s here may not end up being reality,” Bennett said of the proposal, which will be scrutinized by the General Assembly in the coming weeks.
But, “if it comes to this, things get really difficult,” Bennett said of the county’s work to balance its budget.
“We’re as on top of this as we can be,” he said. “The county commissioners are all about being fiscally responsible.”
Allegany County Board of Commissioners President David Caporale said local officials will consult state leaders for help.
“We’ll lobby and remain hopeful,” he said.