On June 3, 2025, the Worcester County Commissioners approved the Fiscal Year 2026 (FY26) Operating Budget of $281,396,017.
“This budget increases funding for priorities like education and public safety and at the same time decreases the property tax rate for our residents,” Worcester County Commissioner President Ted Elder said. “Everyone is coming out of this with something.”
The FY26 budget decreases the real property tax rate by 3 cents. The new real property tax is 81.5¢ per $100 of assessed value and the County’s local income tax rate is 2.25%. Worcester County residents will continue to benefit from the lowest income tax rate and the second lowest real property tax rate as compared to all other counties in Maryland. The County Commissioners also approved a 0% Homestead Tax Credit cap, which will take effect in fiscal year 2027. This cap will help eligible homeowners by preventing increases in taxable assessments.
The approved budget includes $11.7 million in increased property tax revenues. Income tax revenue increased by $6 million. Revenue from other local taxes increased by $1.4 million, including a $725,000 increase in the recordation tax and a $500,000 increase in transfer tax. It also allows a salary step for eligible employees plus a $2,500 cost-of-living adjustment for county staff.
The approved budget includes record funding for the Worcester County Board of Education at $113.8 million, an increase of $7.5 million over the current fiscal year. The funding is expected to allow for a salary step plus a cost-of-living adjustment and to cover rising health insurance and salary related increases, including pension, FICA, and Other Post Employment Benefits.
The coming year’s spending plan also includes a $2.4 million increase in the Worcester County Sheriff’s Office budget. This budget includes a two-grade increase for all sworn officers, funding for continuing education, and capital equipment to replace vehicles.
FY26 funding also includes $2.9 million in grants to county fire companies and $9.6 million in ambulance grants, which includes supplemental funding for 10 EMS companies to assist with runs and personnel costs.
Grants to towns increased by $250,000, including unrestricted grant increases of $50,000 each to the towns and Ocean Pines Association.
The approved budget includes a transfer of $3.8 million to maintain a 15% Reserve Fund. The State mandated Reserve Fund is a tool that is vital to the County’s emergency preparedness plans and plays a key role in the County’s fiscal health and stable bond rating of AAA for Fitch, AA+ for Standard and Poor’s and Aa2 for Moody’s Investor Services. This outstanding bond rating enables Worcester County Government to borrow money at low interest rates that save taxpayers hundreds of thousands of dollars for capital projects, like the upcoming Buckingham Elementary School replacement project.
There are also dozens of public, emergency, and education projects currently being funded with assigned reserve funds. These include but are not limited to $2.8 million to replace the Government Center roof, $1.7 million to replace the roof at Pocomoke Elementary School, and $1.8 million to Fire Tower and Training Center upgrades utilized by Worcester County’s 10 volunteer fire companies and the Fire Marshal’s Office.
The FY26 budget increased by $19.4 million or 7% more than the FY25 budget. Budget decisions were based upon current and projected trends. In early 2025, County departments’ and agencies requests’ for FY26 totaled $286 million. During budget deliberations, the commissioners made cuts of $5.4 million across all divisions of government to adopt a balanced FY26 budget.