Prince Frederick, MD – With a promised windfall from the controversial Dominion Cove Point Export Project still a few years away, Calvert County Government continues to be challenged to craft a balanced spending plan for the next fiscal year (FY).
During a Tuesday, Oct. 28 presentation, Department of Finance and Budget Director Tim Hayden reported a projected budget deficit of $9.7 million for FY 2016. The county government’s projected expenses currently total nearly $250 million. However, projected fund revenues are currently forecast at $239.2 million.
The county government’s largest source of revenue—real property tax receipts—is expected to slowly rise over the next few years. A rise in real property tax assessments in the county’s southern district is forecast. The increase is currently projected to be 1.5 percent.
There will also be slight increases in income tax receipts, and monies collected from corporate and public utility taxes.
Budget expenditure increases are forecast for salaries, operation, insurance and pensions, other post employee benefits and debt service.
Hayden explained that the income tax receipts projected in FY 2016 are weaker than originally expected due to Maryland’s negative job growth. “Maryland’s unemployment rate is higher than the national average,” said Hayden.
In expectation of a gaping budget hole, the department is recommending no pay steps or cost of living adjustments for county government employees. Government department heads are being asked to hold operating budgets at a flat level. No new staff or new county initiatives are currently recommended for the next fiscal year.
Hayden reported his department is planning to implement a “new element” to the budget process which link board goals to departmental objectives. The methodology is labeled “SMART” for the working toward objectives that are “specific, measurable, attainable, relevant and time-based.”
The board’s goals include being “responsible and accountable,” providing essential services such as education, public safety, roads and infrastructure, parks and recreation; work to preserve elements such as the environment, heritage, rural character, growth management and land preservation; and provide citizens with opportunities for residential growth and economic development.
“I still see progress,” said Commissioner Evan K. Slaughenhoupt Jr. [R] of the staff’s budget strategy.
Commissioner Susan Shaw [R], who is not seeking re-election, predicted the budget cycle would yield “some heavy-duty cutting.”
Regarding the upcoming election, Hayden conceded there was no way to tell how changes to the board of county commissioners would impact the next budget. He added that additional expense-cutting approaches may be developed and added during the process.
Contact Marty Madden at marty.madden@thebaynet.com