Unbalanced budget brings talk of tax hikes in Calvert

The reality that Calvert County’s next budget will need more money, or less spending, to balance was evident in the commissioners’ hearing room Tuesday.

During the board’s session with department heads prior to the weekly meeting, Commissioner President Earl F. “Buddy” Hance (R) noted the budget that would be presented to the public later that day contained a bottom line of about $3 million less.

“I don’t think the cutting’s done,” Hance said. “We’re going to have to raise taxes. There’s not enough revenue to cover expenses.”

That observation led Commissioner Mike Hart (R) to again vent about Maryland’s current leadership in Annapolis.

“They had a surplus and they blew it,” Hart said, adding that the state’s current property reassessments in Calvert “are ridiculous.”

Another state initiative grinding Hart’s gears would be what he referred to as “unfunded mandates.” Topping that list is the state’s Blueprint for Maryland’s Future education reform plan.

During the previous week’s meeting, the commissioners expressed frustration with the state for cutting $22.9 million in education funding to Calvert, based on the county’s $54 million tax assessment of the Cove Point Liquefaction facility in Lusby.

Hance said the commissioners have attempted to get Gov. Wes Moore (D) to meet with county officials to discuss possible restoration of the funding but the attempts have failed.

In a packed hearing room at the Calvert County Courthouse — two courtrooms were used for overflow crowds to watch the live stream — Mark Willis, county administrator, advised attendees that the public session was but one step toward the eventual adoption of the finalized fiscal 2025 budget.

The development of the proposed budget, Willis said, “was approached very conservatively. Where we could keep it flat we kept it flat.”

Bruce Miller, county finance and budget director, said of the current plan to use $28 million in fund balance was a “bridging strategy” and that the leftover funds are “generally used for one-time expenditures. However, they are also used as a rainy day funding source.”

Miller added that other revenues must be considered.

Other belt-tightening measures include a county government hiring freeze, which Hance announced was voted on by the board earlier in executive session, no cost of living adjustments or raises for staff and elimination of all vehicle purchases.

Miller and Willis indicated that some capital projects in the budget could be moved back.

The capital improvement plan for fiscal 2025 currently totals $112.13 million, with most of that to be funded by the sale of bonds ($56 million). The capital plan does include $13.67 million in pay-go funds.

Beth Richmond of finance and budget said 84% of the county’s revenue comes from property taxes and income taxes. The proposed budget’s combined total of those revenue sources is nearly $317 million.

As it has been for the last few fiscal years, Calvert’s property tax rate is $0.927 per $100 of assessed value. The county’s local income tax rate is 3% of the state’s taxable income.

St. Mary’s County commissioners earlier this week voted to bring an income tax hike to a public hearing next month.

A few speakers in Calvert, such as Cindy Yoe, advocated for higher taxes.

“It might be time to say the ‘T word,’” Yoe told the commissioners.

The Calvert hearing’s first speaker, Sheriff Ricky Cox (R), voiced displeasure with the way his office’s budget was cut. Noting that he, too, is an elected official, and, unlike county department heads, does not serve at the pleasure of the board, he should have made any decisions on the next fiscal year’s budget.

Cox said he wants pay step increases and cost of living adjustments for sheriff’s office personnel.

The sheriff also stated he believes budget cuts at the county detention center were harmful.

“There’s not a lot of fat to trim at the jail,” Cox said.

The sheriff told the board during his first year as sheriff his staff found savings within the agency.

“We worked hard to get there,” Cox said.

After receiving comments, Commissioner Catherine M. Grasso (R) moved to leave the public record open for one month.

Willis said the commissioners now take ownership of the budget and a hearing on the changes the board makes will be subject to another public hearing in May.