Worcester County FY26 Budget Highlights Reduced Property Taxes and Increased Education Funding

Worcester County, MD - On June 3, 2025, the Worcester County Commissioners approved the Fiscal Year 2026 (FY26) Operating Budget totaling $281,396,017. This substantial budget reflects Worcester County's commitment to balancing tax relief for residents alongside significant investments in public services, including education, public safety, and community grants.

"This budget increases funding for priorities like education and public safety and at the same time decreases the property tax rate for our residents," said Worcester County Commissioner President Ted Elder. "Everyone is coming out of this with something."

Lower Property Taxes for Worcester County Residents

One of the key highlights of the FY26 budget is a reduction in the real property tax rate, which has declined by 3 cents to 81.5 cents per $100 of assessed value. This decrease further solidifies Worcester County's status as a leader in tax affordability, boasting the second-lowest real property tax rate in Maryland while maintaining the lowest local income tax rate at 2.25%.

Additionally, the County Commissioners approved a 0% Homestead Tax Credit cap, effective in FY27. This cap will protect eligible homeowners from increases in taxable assessments, providing long-term stability for property owners.

Despite the reduced property tax rate, the county is projected to see an $11.7 million increase in property tax revenue, reflecting growth in property valuations and assessments across the county.

Record Funding for Education

The FY26 budget prioritizes education with $113.8 million allocated to the Worcester County Board of Education.

This represents a record-setting $7.5 million increase over FY25 funding levels. Worcester County remains committed to supporting the educational needs of students, teachers, and staff by addressing salary adjustments and covering rising costs.

Key allocations for education:

• Salary step increases and cost-of-living adjustments for qualified staff.
• Funding to cover healthcare, pension contributions, FICA, and Other Post-Employment Benefits (OPEB).
• $1.7 million dedicated to replacing the roof at Pocomoke Elementary School as part of capital maintenance initiatives.

Investments in education are intended to sustain high-quality learning environments while ensuring fair compensation for educators and support staff.

Strengthened Public Safety Budgets

Public safety is another major focus of the FY26 budget. The Worcester County Sheriff's Office saw a $2.4 million budget increase, which supports:

• A two-grade salary increase for all sworn officers, helping Worcester County remain competitive in attracting and retaining law enforcement personnel.
• Funds for ongoing education and professional development for officers.
• Capital investments to replace aging vehicles and equipment for enhanced operational efficiency.

"We feel that we are moving in a positive direction with our budgetary needs," noted Sheriff Matthew Crisafulli. "We must stay competitive as other law-enforcement agencies continue to increase their salary packages. This will be an ongoing process for my office."

The budget also enhances community safety with:

• $2.9 million earmarked for grants to local fire companies.
• $9.6 million in ambulance grants, including supplemental funding to better assist emergency medical services (EMS) companies with runs and personnel costs.

Community Grants to Elevate Local Projects and Partnerships

Recognizing the importance of local municipalities and community associations, FY26 includes increased grants for smaller towns and organizations, including:

• A $250,000 increase in grants to towns, with an across-the-board $50,000 boost for unrestricted grants to each jurisdiction and the Ocean Pines Association.

These funds will support community-driven initiatives and local improvements across Worcester County.

Reserve Fund Maintenance Ensures Fiscal Stability

To maintain financial health and emergency preparedness, the FY26 budget includes a $3.8 million allocation to uphold Worcester County's reserve fund at 15% of general fund expenditures.

This robust reserve plan plays a vital role in preserving the County's strong bond ratings of AAA (Fitch), AA+ (Standard & Poor's), and Aa2 (Moody's). These high credit ratings enable Worcester County to borrow at favorable interest rates, saving taxpayers substantial capital on major infrastructure projects.

For example, the upcoming Buckingham Elementary School replacement project will benefit from this financial strategy.

Other reserve-funded projects include:

• $2.8 million to replace the Government Center roof.
• $1.8 million for upgrades to the Fire Tower and Training Center utilized by the county's 10 volunteer fire companies and the Fire Marshal's Office.

7 Percent Increase in Total Budget

The FY26 operating budget reflects a $19.4 million increase (7%) compared to the FY25 budget. This growth is attributed to increased revenue streams, including:

• A $6 million increase in income tax revenue.
• $1.4 million in additional local taxes, such as a $725,000 increase in the recordation tax and a $500,000 rise in the transfer tax.

Despite significant departmental requests totaling $286 million, the commissioners managed to balance the budget by implementing $5.4 million in cost reductions.

Key Takeaways

The Worcester County FY26 budget represents a deliberate effort to serve residents with a balanced approach to fiscal management. Highlights include:

• A lower real property tax rate, making Worcester County one of Maryland's most tax-friendly jurisdictions.
• Record funding for education to support schools, staff, and students.
• Increased investments in public safety and infrastructure to enhance community well-being.
• Grants and support for local municipalities and associations.
• Continued commitment to financial stability through reserve fund maintenance and debt management.

With strategic allocation across critical sectors, the FY26 budget demonstrates Worcester County's commitment to advancing both fiscal responsibility and quality of life for its residents.