Carroll County sets aside 5% fund balance amid budget discussions and state funding changes

Carroll County's proposed budget for fiscal year 2026 is making waves with a significant focus on fiscal security and state funding impacts. During a recent government meeting, officials outlined a $1.3 million match for state funding, alongside an annual allocation of approximately $100,000 from the agricultural transfer tax. A notable highlight is the planned 5% salary increase for county employees, including those in law enforcement and the courts.

A key strategy discussed is the use of fund balance, often viewed as surplus funds. The county plans to allocate $22.3 million from this balance for the state's attorney's headquarters capital project. Additionally, the commissioners will set aside 5% of the fund balance for unforeseen circumstances, such as revenue downturns or unexpected mandates. This proactive measure aims to provide the county with flexibility in times of financial uncertainty, echoing lessons learned from the COVID-19 pandemic.

The meeting also addressed the interconnectedness of state and federal budgets, with officials warning that challenges at the state level could directly impact county finances. The proposed budget includes a substantial $97 million allocation for Carroll County Public Schools, reflecting an $8.5 million increase largely tied to new state legislation. Meanwhile, Carroll Community College is set to receive $15 million, marking a more than $1 million increase, while the public library will see a modest $1.5 million allocation.

However, concerns were raised about the shifting of pension costs from the state to the county, particularly regarding public schools and community colleges. The county is now responsible for an additional $2.5 million in pension costs for schools, raising alarms about potential future obligations.

In summary, Carroll County's FY26 proposed budget emphasizes fiscal planning and the need for adaptability in the face of external pressures, while also highlighting the ongoing challenges posed by state funding dynamics. As the budget process unfolds, the county will need to navigate these complexities to ensure financial stability for its residents.