The only word used to describe the fiscal year 2026 budget proposal released by acting Prince George’s County Executive Tara Jackson more than the word “challenge” was “difficult.”
During a Thursday afternoon budget announcement, Jackson made it clear that things are likely to change again in the weeks to come, thanks to “uncertainty” at both the state and federal level.
The $4.78 billion general fund budget proposal represents a little over 4% increase from last year — $193.1 million — and more than 80% of it will be spent to cover education and public safety. The rest of the county’s agencies are being faced with budget cuts from last year, though that won’t lead to any layoffs or job eliminations at this point.
“This year is difficult,” Jackson said. “We know that we must be extremely careful because of the unexpected. The unexpected additional cost, unexpected loss of grants and unexpected loss of revenue — loss of revenue that will likely come from the elimination of federal jobs.”
The budget doesn’t include any property or income tax hikes. In fact, the only change to taxes involves telephone lines — both cellular lines and landlines.
Currently, residents pay a certain percentage of their overall phone plan, similar to a sales tax. For the average resident, it’s a dollar per month, though some residents might pay less than a dollar while others pay more.
Right now, the county council is being pressured to change that to a flat $3.50 excise tax for every phone line instead. That is expected to boost county revenue by $37 million, while costing each resident about $42 per year.
Jackson is also asking the council to delay the implementation of a new property tax credit for seniors.
All of this comes with looming uncertainty regarding the impact of federal job and budget cuts on the county’s revenues.
Jackson said it was too early to determine the potential fallout yet, and that estimates have varied. In addition to possible job losses and agency closures, significant federal grant funds the county receives are also in jeopardy.
“We’re unable at this moment to know exactly what that means in terms of loss of revenue if persons were to lose their jobs, but what we do know is there is uncertainty,” Jackson said. “And so when there’s uncertainty, we have to be conservative.”
‘We have had to make tough choices’
On top of that, state lawmakers — including Maryland Gov. Wes Moore — are looking to plug a budget hole in Annapolis by shifting mandated state spending on the backs of counties to the tune of tens of millions of dollars.
At the same time, Jackson said the governor’s proposal to double the standard deduction and eliminate itemized state taxes will have a negative effect on the county.
In a letter sent to the governor earlier this month, Jackson argued that if Moore’s tax plan goes through, only Charles County would have more residents paying higher taxes in the next fiscal year. However, Prince George’s County would see the smallest number of residents who get a tax decrease.
“This imbalance places an unfair burden on County residents,” she wrote.
During her announcement, Jackson said she sympathized with state lawmakers and the bind they’re in as well.
“We are assuming a certain amount of cost shifts in our budget, but we have said, ‘Look, if you go beyond this, it really is going to hurt us,'” she said.
In particular, she pointed to the education plan known as the Blueprint for the financial woes facing both state and local governments because of the mandated spending associated with it.
“They’ve got an education plan that’s expensive,” she said. “And we’re saying it’s expensive, but it’s expensive for the state as well.”
After the announcement, County Council Vice Chair Ed Burroughs, who often clashed with the administration of former county executive Angela Alsobrooks, said the financial bind has the council and the county executive’s office seeing things eye to eye more than in the past.
“This is one of the most difficult budgets in our county’s recent history,” he said. “And it’s projected to get worse every year after this budget.” How much worse will depend on what happens in Annapolis.
Once the legislature adjourns for the session next month, Jackson will have to amend the budget proposal to meet figures state lawmakers pass financially.
“We have had to make tough choices despite historic uncertainty,” Jackson said. “We’ve made continued investment in education and public safety, while making necessary cuts in other areas. Residents will feel these cuts, but they will help us maintain the fiscal responsibility that’s needed to protect our community.”
Other budget notes
The budget proposal increases education spending by almost $119 million, up to $3.1 billion. The bulk of that money goes to the county public school system.
On top of that, more than $200 million is allocated for new school construction, including multiple new high schools. Prince George’s Community College and the county’s library system will also see increases.
Jackson’s budget also includes a boost of just over $29 million for Prince George’s County Police Department, with money allocated for more than 100 new police officers. In all, the PGCPD would get about $424.3 million in the budget.
Prince George’s County Fire and EMS is slated to get nearly $315 million, including money for 95 new recruits.
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