Baltimore County Executive Kathy Klausmeier unveiled a $4.8 billion budget for the next fiscal year on Fridaythat does not include tax increases despite challenges at the state and federal levels.
The fiscal 2026 budget, the first proposed by Klausmeier after she replaced Johnny Olszewski in January, proposes millions of dollars in additional funding for improvements to public schools, public safety, libraries and more.
The proposed budget comes after state lawmakers closed a $3.3 billion budget deficit. and have shifted some costs onto local governments — including roughly $15 million for Baltimore County.
Adding to that are cuts in federal funding, including the end of aid related to the COVID-19 pandemic. Continuing inflation and tariffs, which are likely to increase costs for the county, also created difficult situations for the county budget team, with some effects remaining unknown.
Because of that, Klausmeier said, she could not ask Baltimore County residents to pay more taxes.
“These uncertainties, coupled with increased insurance and utility bills, new state taxes and inflation, are already a burden on our families and businesses,” she said.
The county also wasn’t able to fund every initiative, Klausmeier said in her budget address. She later told reporters that each department was asked to stick to no more than a 3% increase in their spending.
Council Chair Mike Ertel, a Towson Democrat, said the council will hold a public hearing on the budget on April 29 and review individual agency budgets in early May. A final vote on the budget is expected on May 22. The county’s fiscal year starts July 1 and ends June 30, 2026.
Klausmeier’s proposed budget funds the Baltimore County Public Schools system $34 million over the state-mandated maintenance of effort. Its starting salaries for first-year teachers are the highest in the Baltimore region, Klausmeier said.
More than $350 million in capital funding is slated for school improvements, including continued funding for the Towson High School and Dulaney High School projects. The budget would also allocate more than $30 million to build a new library and recreation center in Randallstown.
Higher education would also see a small increase in funding, including $2 million for a new welding program at the Community College of Baltimore County in Dundalk, which Klausmeier said would “train and prepare our workforce to rebuild the Key Bridge.”
The budget, as proposed, would give a 3% mid-year cost-of-living adjustment for fire and police personnel, as well as a 2% mid-year cost-of-living increase for county employees. It also gives $60 million to complete construction of the North County and Jacksonville senior centers.
Councilman David Marks, an Upper Falls Republican, said this year’s budget foreshadows an even more difficult budget next year.
“It’s a very tight budget,” he said in an interview.
However, Marks said he was pleased with the increased funding for the fire department and projects in his district. The best part, he said, was that the budget did not include any property or income tax rate increases.
In the state’s final budget, lawmakers authorized an increase in the maximum ‘piggyback’ income tax rate counties can impose from 3.2% to 3.3%, which Baltimore County did not choose to raise.
The county budget proposal also provides more than $25 million to replace the Baltimore County Police Department precinct in Essex and $22 million for a new fire station in Sparrows Point. This year’s Equipment Financing Package provides more than $28 million to replace lifesaving equipment.
Closing out her remarks on Friday, Klausmeier acknowledged that her tenure as the county executive isn’t for long.
“Since the day I submitted my name to serve as county executive, I have been open and honest about the fact that I do not intend to run in two years,” she said. “My service to this county is exactly that: an act of service and an opportunity to lead Baltimore County through this difficult time and toward a better, safer and fiscally sound future.”
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