Talbot County, Maryland

04/15/2026

Category: Finance County Manager’s Office County Council

The Talbot County Council introduced the Fiscal Year 2027 Proposed Budget during its meeting on April 14, 2026. The budget presentation was delivered by Martha Sparks, Finance Director, and Clay Stamp, County Manager.  

The proposed General Fund Budget totals $159.1 million, reflecting a $2 million decrease from the FY26 budget of $161.2 million. 
Stamp noted, “The budget was developed using the County’s longstanding conservative approach, with a focus on maintaining services while navigating ongoing economic and policy uncertainties, including potential federal and State impacts, workforce challenges, and broader economic pressures.” 

FY26 Accomplishments 

In his opening remarks, Stamp highlighted several key accomplishments from the current fiscal year that reflect ongoing investments in public safety, infrastructure, and community services. 
Construction began on a new North EMS Station in Cordova, which will improve emergency response times and enhance service delivery in the northern part of the county. The County also advanced a systemwide equipment upgrade for paramedic units, including new heart monitors, stair chairs, and power stretchers, while increasing support for Volunteer Fire Departments. 

The County continued its commitment to maintaining more than 370 miles of roadway through routine paving as well as targeted improvements. Notable projects include the completion of the Goldsborough Neck Road widening and and safety improvement project in partnership with the Town of Easton and Mid-Shore Regional Council, supporting both safety and future economic development near the future regional hospital site. Work also began on the Chapel Road Culvert Replacement project to address roadway safety and waterflow at Wootenaux Creek. 

Community investments also included the reopening of the renovated and expanded Talbot County Free Library – St. Michaels branch in March 2026, enhancements to County owned pools in Easton and St. Michaels, and the establishment of the Office of Community Partnerships to strengthen coordination among agencies, nonprofit partners, and community stakeholders. 

Budget Strategy and Approach 

The FY27 budget emphasizes: 

• Delivering core services at or below current funding levels 
• Limiting new positions unless fully funded by identified source 
• Prioritizing completion of existing capital projects 
• Maintaining a conservative approach to capital spending 
• Continuing a focus on personnel, processes, and project efficiency 

County staff noted that the budget reflects months of collaboration with departments, agencies, and the Council, with careful review of all requests and alignment with long-term financial policies. 
Sparks stated, “Thank you to the County Council for your leadership and support throughout the budget process helping to provide direction to what is a good budget maintaining a conservative approach that continues to serve the County well.” 

Revenues and Tax Structure 

• Total revenues for FY27 are projected at $159.1 million. Property taxes remain the County’s largest and most stable revenue source, supplemented by income taxes and other local revenues. 
• No changes to the local income tax rate 
• No increases to the County’s fee schedule
• Property tax rates are calculated in accordance with the County Charter and include:
• A 2% increase over FY26 revenues in accordance with the Talbot County Charter 
• An additional 1-cent increase approved by the voters in 2020 and 2024 for public safety funding
• An education supplement of 0.0147 

For a home assessed at $300,000, the proposed budget reflects an estimated annual increase of approximately $44.40. This includes about $44.10 from the education supplement, with the total annual County property tax bill estimated at $2,790. 

Key Investments and Expenditures 

The largest share of the County’s operating budget continues to support Talbot County Public Schools, with education-related expenses accounting for approximately 43% of general fund operating expenditures. 

Additional highlights include: 

• A 3% cost-of-living adjustment (COLA) and one performance-based step increase for County employees 
• No new general government positions without identified funding sources 
• Targeted use of fund balance reserves for one-time investments, including: 
• $5.5 million for capital outlay (equipment) 
• $4.6 million for capital projects 
• $2.2 million for recreation-related investments 

Operating costs have increased approximately 5%, largely driven by workforce-related expenses, while capital outlay reflects planned one-time investments in infrastructure and equipment. 

Financial Stability and Reserves 

The County continues to maintain strong financial reserves, totaling approximately $106 million at the end of FY25, in accordance with reserve policies adopted by the Council. These reserves support long-term stability, help manage risk, and reduce the need for borrowing. 

Talbot County’s strong financial position is further supported by its AAA credit rating from Fitch and Aa1 rating from Moody’s Investors Services, reflecting sound financial management and conservative budgeting practices. 

Next Steps in the Budget Process 

The Council will now begin its deliberation process, with opportunities for public input scheduled as follows: 

• Public Hearings: May 5, 2026
  • 2:00 p.m. - Bradley Meeting Room
  • 7:00 p.m. - Easton Elementary School Cafeteria
• Final Budget Deliberations: May 12, 2026
• Budget Adoption: May 26, 2026 

Residents are encouraged to take part in the budget process by attending public hearings or submitting comments in advance. Additional information, including options to provide feedback online, is available at http://talbotcountymd.gov/fy27budget. 

huck Callahan, President, Talbot County Council commented, “Thank you to my fellow Council members as well as Mr. Stamp, Ms. Sparks and Ms. Foster-Clark for developing a solid budget that continues to prioritize public safety and education.” 
 

finance budget process