St Mary's County faces inevitable tax increase as budget pressures mount

The St. Mary's County Budget Work Session held on March 12, 2019, focused on the county's financial outlook and potential tax increases. The meeting began with discussions surrounding the necessity of a tax increase, which several officials deemed inevitable due to various factors impacting the budget.

One commissioner expressed concerns about the county's financial trajectory, highlighting the implications of the Kirwan legislation and the projected hiring of 20 full-time employees (FTEs) for the jail. The commissioner emphasized that St. Mary's County, being the fourth fastest-growing county in Maryland, must prepare for increased operational costs associated with growth, including compensation and pension obligations.

A key proposal discussed was the adjustment of the homestead property tax credit. The commissioner suggested lowering the homestead cap from 3% to 0% to provide a protective mechanism for property owners against rising taxes. This proposal aimed to give the board more control over tax increases, ensuring they align with the county's financial realities.

However, another commissioner countered this suggestion, arguing that the proposed reduction would result in significant revenue loss, estimating a cost of approximately $492,000. This commissioner advocated for maintaining the current homestead cap, citing the need for a balanced approach to funding essential services while avoiding drastic cuts that could harm the community.

The discussion also touched on the long-term consequences of tax policies, with one commissioner referencing a chart illustrating the impact of previous tax cuts on county revenue. The commissioner warned that while short-term savings might benefit some taxpayers, they could lead to larger deficits in the future.

As the session progressed, the commissioners debated the merits of various tax structures and credits, particularly for seniors and first responders. The consensus was that St. Mary's County has a generous tax credit system compared to other counties, but the need for sustainable funding mechanisms remained a priority.

In conclusion, the meeting underscored the complexities of managing a growing budget in St. Mary's County. With the inevitability of tax increases looming, the commissioners recognized the importance of strategic planning to balance the needs of the community with fiscal responsibility. Further discussions and decisions regarding the budget and tax policies are expected in upcoming sessions.