At Tuesdays, March 24 meeting of the Queen Anne’s County Board of County Commissioners, County Administrator Todd Mohn and Director of Budget and Finance Jeff Rank presented the County Administrator’s proposed Fiscal Year 2027 (FY2027) budget. The presentation marks the next step in the County’s annual budget development process.
The proposed FY2027 operating budget totals $234.5 million, representing a 12% increase over the FY2026 budget of $209.4 million. The budget as presented was based on the current property tax rate of $0.83 per $100 of assessed value and an income tax rate of 3.2%.
Following discussion of the County’s strong financial position, Commission President Jim Moran introduced a motion, seconded by Commissioner Phil Dumenil, to reduce the property tax rate to $0.80 per $100 of assessed value. The measure passed unanimously and will take effect at the start of the FY2027 budget on July 1.
The Commissioners emphasized that this reduction reflects the County’s continued commitment to conservative fiscal management and responsible budgeting. Queen Anne’s County currently holds a Triple-A bond rating from all three major rating agencies, the highest possible designation placing it among a small percentage of local governments nationwide. The most recent receipt of a Triple-A rating from Moody’s reflects the solid fiscal responsibility that enabled the commissioners to approve this property tax reduction. This distinction allows the County to borrow at lower interest rates, ultimately saving taxpayer dollars.
Commissioners noted that the decision to lower the property tax rate was made with careful consideration of current economic conditions, including the rising cost of living, particularly for residents on fixed incomes. While the individual savings may be modest, the reduction represents a meaningful step to provide relief to taxpayers while maintaining the County’s strong financial footing.
Because approximately 41.2% of County revenues are derived from property taxes, the rate reduction will decrease projected revenues for FY2027. As a result, the County Administrator and Finance Department will revise the proposed budget to reflect the adjusted revenue outlook.
The proposed budget includes $91.4 million, or approximately 42% of total operating expenditure, for the Board of Education. This represents an increase of $9.3 million over the previous year and includes approximately $600,000 in teacher pension costs passed down from the State.
Looking ahead, the Commissioners also indicated that, if current financial trends continue, they will explore the possibility of reducing the County income tax rate in future fiscal years.
Budget work sessions will begin on Thursday, March 26 at 5:00 p.m. Residents are encouraged to attend in person at 107 N. Liberty Street in Centreville or watch live on QACTV. Additional information about the budget process is available at qacbudget.org.
