The St. Mary’s County Commissioners on Tuesday got their first look at some issues that will affect their operating budget deliberations next year. At the budget work session the commissioners learned that staff is predicting about $5.5 million more in income tax revenue.
On the other hand, according to Deputy Director of Finance Jeanette Cudmore, the operative word for property tax revenue is “flat,” as it was for the current fiscal year. About $500,000 more is expected for the next fiscal year, which could be considered to be a victory considering some counties are still dealing with declining property tax revenues as a lingering effect of the housing crisis.
Chief Financial Officer Elaine Kramer pointed out how imprecise a science it is so early in the budget planning cycle to predict revenue. She said some figures don’t come in until after the budget is set on June 1. Income tax revenues from the state stager in from three fiscal years in any given county budget year.
Kramer said the budget is being built under the assumptions that every 10 percent health premium increase costs $610,000, every salary step costs $550,000 and every one percent cost of living increase costs $500,000. The commissioners will address those issues at March 12 and 18 budget work sessions.
The various departments have not yet submitted their proposed budgets, although the guidance to them is:
· Essential cost changes only
· No new initiatives
· Maintain adequate reserves
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