County looks to fill $10.6M budget deficit

Apr. 14—CUMBERLAND — Allegany County officials said Thursday they are looking for ways to cover a projected $10.6 million budget deficit for fiscal 2024.

Jason Bennett, county administrator, provided details on the shortfall during a budget workshop at the county office complex. He said that the county's projected revenue for 2024 is $102.3 million, however, requested expenditures are $112.9 million, resulting in the deficit.

"It's really the perfect storm of things hitting us at once," said Bennett.

The biggest factors contributing to the deficit are large increases in education spending, emergency medical services, and salaries as agencies across the board experience increases in the minimum wage.

"The increases in education, which is driven by the state, is basically the largest factor," said Bennett.

The state department of education's Blueprint for Maryland's Future, developed by the Kirwin Commission, is expected to increase education funding in the state by $3.8 billion each year for the next 10 years. The impact is a sharp increase in education spending in each of Maryland's 23 counties and Baltimore City.

The state is requiring Allegany County to increase its share of funding to the Allegany County Public School System next year by $2.3 million. Funding for pre-k in the schools, which was previously unfunded, represents a large portion of the funding increase.

Another steadily increasing cost for the county is emergency medical services provided by the various fire and rescue units throughout the county.

"For several years now EMS (costs) have grown," said Bennett. "The volunteers have drifted away and we have stepped in providing that service. Our budget now is around $7 million for EMS and, as you guys know, that used to be a zero."

Commissioner Creade Brodie Jr. said, "It was promised never to go over $400,000 in 2011. So I don't know how we went from $400,000 to $7 million, but we better find a way to cut a couple million out of that."

Bennett said for years EMS was largely a volunteer operation. "It has become harder and harder to find people with time to volunteer and the volunteers have drifted away. The certification requirements have also been tightened. Every county is dealing with this."

Bennett said a large number of personnel currently working in EMS units are paid county employees.

In addition to EMS and education, many of the agencies funded under the county have asked for budget increases for 2024. The Allegany County Library System has asked for an additional $250,000; Allegany College of Maryland, $250,000; Western Maryland Scenic Railroad, $110,000; and the Allegany County Health Department is seeking a $93,400 increase.

The county is reviewing the requests and will make a final decision in the coming weeks.

The budget for Allegany County has also been impacted by an unusual source for the last two years. In 2021 a winning $731 million Powerball lottery ticket was sold at the Coney Market in Lonaconing. The prize money generated $15 million in income tax for Allegany County for 2022.

"The winner of the jackpot, who remained unidentified, that winner was in Allegany County, which means we get the income tax," said Bennett. "That is $15 million (in revenue), which is great, but what it did was it totally changed the calculation on the disparity grant. It took our income way up so we lost about $2 million in disparity funding."

Allegany County had received a disparity grant each year of roughly $2 million, which helped offset education expenses. However, with the county's income tax increasing, the county was no longer eligible for the grant funds.

Bennett said the funding from the lottery winnings will dry up next year as the final tax ramifications, which take about three years to satisfy, are closed out.

County officials are considering filling the deficit with funds from the lottery income tax money, general fund monies, and some cuts in budget requests. County officials hope to approve a balanced budget by June 1.

Greg Larry is a reporter at the Cumberland Times-News. To reach him, call 304-639-4951, email glarry@times-news.com and follow him on Twitter @GregLarryCTN.