County Budget Mired In Unknowns

SNOW HILL –   Revenue concerns highlighted a Worcester County budget work session this week as the long-term effects of the ongoing health crisis remain unknown.

“The impact’s going to continue a lot longer than we think,” Commissioner Jim Bunting said.

The commissioners held a virtual meeting Tuesday to discuss the county’s $205 million proposed budget. Several of the commissioners were quick to express their concern about the fact that revenues in the coming year were projected to be higher than they are in the current fiscal year.

“I think we’re going to see a bigger hit because of the pandemic than is indicated in this budget.,” Commissioner Chip Bertino said. “I’d just like to see these line items scrubbed even more.”

Commissioner Ted Elder agreed.

“I’d rather err on the side of caution,” he said.

Bertino questioned projections regarding property tax, income tax and rental license fees. He also pointed out that casino revenues would be down.

Staff projections show the county bringing in $138 million in property tax revenue in the coming year, up from $134 million this year. Finance Officer Phil Thompson said he was confident regarding those figures, as the process was already underway and the county typically collected the amount it budgeted. He said if there was a variance he expected it to be less than half a percent.

“Property taxes I’m probably more sure of than just about everything else on here,” Thompson said, adding that property taxes accounted for roughly 70% of the county’s revenue. “Income taxes … we know we’re going to take hits. We know it’s been a horrible March/April. May is not looking tremendously better there however we’re hoping to salvage a reasonable summer season.”

He said staff had lowered the projected income tax revenue by $3.5 million, to $26.5 million.

Bertino said that in the early days of the pandemic, the commissioners had asked staff to present a flat budget aside from a maintenance of effort level budget for the school system and raises for staff.

“On the revenue side that’s not what is reflected here,” he said. “What’s presented to us is not necessarily what we asked for two months ago.”

Commissioner Bud Church, who’s represented District 3 since 2002, said the economy was much worse during his early years as a commissioner.

“We’re the second richest county in the state of Maryland. Ocean City, even in a bad time, is going to generate income…,” he said. “I don’t have a problem with the projected budget. We will get through this … It’s not going to be a record year but it’s not going to be a disastrous year. The sky’s not falling.”

Though Bunting proposed lowering projected room tax revenue and transfer tax revenue, motions to do so failed with just the support of Bunting, Bertino and Elder. The commissioners did agree that revenue associated with housing at the jail for U.S. Immigration and Customs Enforcement currently projected at just under $5 million, should be reduced and asked Warden Donna Bounds to come back with a new figure.

The commissioners are expected to approve a final budget in early June.

About The Author: Charlene Sharpe

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Charlene Sharpe has been with The Dispatch since 2014. A graduate of Stephen Decatur High School and the University of Richmond, she spent seven years with the Delmarva Media Group before joining the team at The Dispatch.