St. Mary’s County Budget 2025
St. Mary’s County residents and a handful of out-of-county speakers wait to address Commissioners on April 22, 2025. (Source: St. Mary’s County Government)

LEONARDTOWN, Md. — On April 22, 2025, the Commissioners of St. Mary’s County held a public hearing to present the basic facts of the proposed FY2026 budget to the public and to offer a chance for the public to speak up for what concerned them or the people around them regarding the proposed budget. However, what became clear over the course of the three-hour meeting was that the St. Mary’s County public overwhelmingly came to speak out on one issue, and that was public education.

As The BayNet reported last week, the St. Mary’s County Public School System was being forced to plan cost-cutting measures to address a major budget shortfall. That budget is ultimately set by the commissioners, advised by other county departments and the public, and as will be discussed below, the blame for the shortfall in the county’s education budget was placed squarely on the shoulders of the commissioners.

Aside from concerns about public education funding, many came to support the St. Mary’s County Public Library, which is facing serious funding issues, and many came to support the Volunteer Firefighter and Rescue Squad Response Rewards Program.

It is important to note that the current budget has not been finalized, and the commissioners will take the commentary they received during the public hearing and apply it as they can to the final budget, which will be set at the May 20 commissioners meeting.

Those who are interested in further exploring the county’s proposed budget can find it here.

FY2026 County Budget

Volunteer Firefighter and Rescue Squad Response Rewards Program

St. Mary’s County is rolling out a new Volunteer Firefighter and Rescue Squad Response Rewards Program designed to help offset the incidental costs volunteers face in the line of duty. This initiative aims to encourage participation and reward commitment among active volunteers.

Eligible volunteers can choose between an annual property tax credit or a stipend, with benefits distributed across several performance tiers. The Basic Tier offers $1,000 to volunteers who achieve at least 50 LOSAP (Length of Service Award Program) points. The Second Tier provides $2,000 for those who earn 50 LOSAP points and respond to either 20 percent of calls or 100 total calls. The Third Tier increases that reward to $3,000 for volunteers who respond to 40 percent of calls or 200 calls, in addition to meeting the 50 LOSAP points threshold. Leadership-level volunteers also receive $3,000 annually, provided they meet the 50-point requirement.

Hollywood Volunteer Rescue Squad Tax Increase

The Hollywood Volunteer Rescue Squad received unanimous community support for a proposed tax increase, which was the subject of a public hearing on Feb. 25, 2025. All eight comments submitted were in favor. The approved change raises the rescue tax rate from $0.014 to $0.030 per $100 of assessed property value.

Funds will support the renovation and expansion of the original rescue station—an infrastructure investment aimed at improving emergency response services in the area.

Leonardtown Volunteer Rescue Squad Tax Increase

Similarly, the Leonardtown Volunteer Rescue Squad received support for its proposed tax rate adjustment. At the public hearing held on March 4, all 16 public comments were in favor of the increase. The new rate moves from $0.009 to $0.030 per $100 of assessed property value.

This increase is intended to finance property acquisition and the construction of a new facility or a modification of the already existing one.

St. Mary’s County Environmental Health Fee Schedule Updates

St. Mary’s County is proposing updates to its Environmental Health (EH) fee schedule, which hasn’t undergone a comprehensive revision since 2015. These fees are part of a cost-sharing approach where both taxpayers and the individuals/businesses requesting services contribute to the actual service cost.

The proposed changes are driven by inflationary adjustments and will now be reviewed biannually—similar to Calvert County’s system. Notable past adjustments include a 2020 fee for mobile food trucks due to state regulations and an increased perk fee to support expanded well monitoring.

While the majority of EH fees remain significantly lower than those in neighboring counties, one public commenter raised concerns about the complexity and volume of the current schedule, which includes approximately 392 separate fees.

Additional Fee Changes Across County Departments

Several departments in St. Mary’s County are proposing targeted fee increases as part of the FY2026 budget. The Animal Control Division will introduce a new Commercial Kennel License Fee—$200 for facilities housing 12–24 animals and $400 for those with 25 or more. This measure aims to ensure proper care and regulation standards.

An annual Environmental and Solid Waste Service Fee, already appearing on property tax bills, will rise slightly from $102.48 to $104.53. In Recreation and Parks, special event fees are seeing minor changes. The Summerstock Theatre program will now offer a simplified ticket price of $15 for all audience members, and fees for school-age care and camps will increase slightly. Detailed fee information, including updates to the Chancellor’s Run Activity Center and the Wicomico Shores Riverview Restaurant, can be found in the published budget (pages 122–143).

General Budget Overview

This year’s budget process has been marked by uncertainty, driven by shifts in the state’s tax structure, a projected Maryland state budget deficit, and reductions in grant funding and federal program support. Despite these challenges, St. Mary’s County projects a general revenue increase from $323.5 million in FY2025 to $337.4 million this year, a 4.3 percent rise. When fund balance usage is included, total available revenue is expected to grow to $348.9 million, despite a $1.4 million decline in state and federal grant funding.

There are no new county income or property tax increases in the FY2026 proposal.

Demographics and Fiscal Stability

The county’s population is slightly declining, but median income has risen to $114,580, significantly above both the state and national averages. St. Mary’s County has seen a 38 percent increase in median income, consistent with national trends.

The county maintains a strong 20 percent fund reserve, exceeding its goal of 15 percent, with $11.5 million of that balance slated for use in FY2026. Officials emphasized a commitment to fiscal sustainability, maintaining emergency reserves and adapting responsibly to anticipated state and federal policy shifts.

Compensation and Expenditure Highlights

To remain competitive and sustain public services, the county has proposed modest salary adjustments, including:

  • A 1 percent cost-of-living adjustment (COLA)
  • A 2.5 percent one-step merit or top-of-grade raise for sworn employees
  • A 3.66 percent increase for county merit scale employees (effective July 1)
  • A 3 percent increase for Sheriff’s Office personnel

Other proposed expenditures include:

  • $5.1 million in reserve funds for potential impacts from the governor’s budget
  • $3.1 million for a teacher pension expense shift (recently reduced to $1.562 million as Maryland shifts pension obligations to the counties, freeing up $2.7 million for further consideration)
  • Increases for school bus contracts, public safety compensation, and capital equipment purchases

Capital Budget and Long-Term Investment

The FY2026 Capital Budget allocates $75.4 million for community improvements, including:

  • $14.7 million for highways
  • $14.1 million for public facilities and land
  • $12.2 million for parks and recreation
  • $34.4 million for public schools

Planned capital investment between FY2027 and FY2031 is projected at $412.8 million, with key projects including:

  • Roadway and safety improvements
  • Land preservation
  • The YMCA at Lexington Park
  • Recreation and park facility upgrades
  • Three Notch Trail Phase 7
  • Improvements at Chopticon High School and Green Holly Elementary

Looking Ahead: Budget Finalization Timeline

The next steps in the FY2026 budget process include:

  • May 6: Budget workshop to review public hearing feedback
  • May 13: Final direction workshop by the commissioners
  • May 20: Final budget review and adoption

Encouragingly, an expected $9 billion increase in federal defense spending could benefit St. Mary’s County, particularly at the Patuxent River Naval Air Station, offering positive economic prospects for the local workforce and associated industries.

Public Comments

All the above information came from approximately the first 20 minutes of the public hearing. The remaining two hours and 40 minutes were devoted to public comments, which were allotted to the public in 3-minute segments during which they could address any concerns they might have had about the county’s budget or proposed programs, fees, and taxes.

Volunteer Firefighter and Rescue Squad Response Rewards Program – Public Comments

Two speakers addressed the proposed Volunteer Firefighter and Rescue Squad Response Rewards Program, expressing appreciation for the commissioners’ effort to recognize and support active volunteers. One commenter emphasized that the program not only helps mitigate personal costs incurred while volunteering but also signals the county’s respect for the service provided. Another suggested that consistent implementation and outreach would be key to encouraging more participation. Dozens of fire and EMS personnel were present, and they received sustained applause from the audience when they were asked to stand to be recognized.

County Budget – Public Comments Overview

The majority of the public feedback during the hearing was centered on the broader county budget, with particularly strong focus on the funding levels for public schools and public libraries.

Public Comments on St. Mary’s County Public Schools

Dozens of speakers addressed the proposed budget’s treatment of public education, expressing frustration over what they viewed as a lack of adequate funding. Sarah Penrod, president of the Education Association of St. Mary’s County, delivered a prepared speech that was met with a strong show of support: when she asked supporters of education to stand, nearly the entire room—over 100 people—rose to their feet.

In her remarks, Penrod quoted each of the commissioners from previous years, highlighting their stated support for education, and contrasted those statements with the current budget proposal, which does not include an increase in school system funding. She framed the funding decision as a choice rather than a necessity and announced that educators are prepared to “work to rule,” ceasing all unpaid labor like tutoring and volunteering if adequate funding is not provided.

Numerous educators followed, including elementary and preschool special education teachers, voicing concerns about staffing cuts, declining morale, and the impact on students. One teacher referenced Worcester County, which spends over $4,300 more per student than St. Mary’s, despite having a lower median income. Another speaker noted that although a tax increase passed last year was framed as a move to bolster school funding, it does not appear that those funds were allocated to education—prompting a speaker to say, “It makes it seem like the commissioners’ words have no meaning.”

Student Member of the Board of Education Hannah Heisler pointed out that the education budget comprised 47.7 percent of the overall county budget in 2017–2018 and has since dropped to 41.4 percent.

Troy Cowan, self-identified as “the old man of Lexington Park,” argued that funding schools has downstream consequences: “It sure makes Sheriff Hall’s job easier. It sure makes State’s Attorney Jamie’s job easier. And the fact that those are the two departments that got the largest increases in this budget this year—it seems like their job has been harder. Which means that we failed earlier on.”

Concerns were also raised about how underfunding schools might affect the county’s ability to retain residents, especially families looking for strong public education.

Public Comments on St. Mary’s County Public Libraries

Several speakers also voiced concern over proposed reductions in funding for the St. Mary’s County Library system. Speakers highlighted the library’s wide community impact—serving as a place for after-school learning, job interview preparation, and a general safe haven for youth and adults alike.

One speaker noted the library recorded over 314,000 visits in the past year and described it as one of the most accessible public resources in the county. Another recalled growing up in a household that couldn’t afford to purchase books, stating, “I can tell you with absolute confidence that I could never [have read] a fraction of the books that I grew up on if the burden of access fell solely on my parents… I would not be the person I am.”

Final Remarks and Commissioner Response

St. Mary’s County Budget 2025
Commissioner President Guy addresses the audience at the public hearing, April 22, 2025. (Source: St. Mary’s County Government)

Not all feedback was critical. Sheriff Hall and a representative from the Sheriff’s Office expressed thanks for the increased departmental funding in the proposed budget. Hall stated that improved salaries and benefits are helping the department remain competitive and retain talent, which is necessary for maintaining high-quality service to a growing community.

At the end of the hearing, Commissioner Guy addressed the audience, acknowledging the intense concerns raised throughout the night, saying that “this year is probably the worst budget session I’ve been through in 11 years… we don’t know what the federal government is going to do [or] what the state is going to do.”

However, he pushed back against some public assumptions, saying that not all of the rumored $9 million in potential funding actually exists. He conveyed that approximately $2.9 million was absorbed by the state in unfunded mandates, alongside an additional $5.6 million in costs passed on to the county in 2024, which compounded into a loss of $8 million in revenue for the county, bringing the total county losses to as much as $10.9 million—an amount that eliminates the impact of $9 million raised by last year’s 0.2 percent income tax increase.

Commissioner Guy emphasized the broader budget challenges, including uncertainty at the federal and state levels, and encouraged the public to attend the upcoming budget workshops scheduled for May 6 and May 13. The final budget adoption is set for May 20, during which the commissioners will make their final decisions on funding allocations and tax rates.

Contact our news desk at news@thebaynet.com 

Jonathan Geyer is a writer passionate about telling the stories of individuals whose voices might otherwise go unheard. With a background in anthropology, he brings a unique perspective to journalism,...

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