FY26 Budget Work Session
Originally Published: November 27, 2024
CIPs Examined
Capital Improvement Projects (CIP) were reviewed by the County Commissioners on November 19th during the first Budget Work Session (BWS) for FY26. The county must approve the budget by the end of May each year, with the fiscal year starting July 1. Chief Financial Officer (CFO) Vanetta Van Cleave gave an overview of where things stand, telling Commissioners there is currently $787K in their reserve, but a potential to return $2.8M in savings at the end of FY25. Van Cleave also mentioned a projected revenue increase of $10M over last year, but an overall shortfall of $12.9M in revenue versus expenses for FY26. The shortfall is caused primarily because of shifting CIPs, which are forecasted for the next five years during each budget cycle. This budget has an additional $89.8M for FY31 projects.
St. Mary’s County Public Schools (SMCPS) will renovate Chopticon High School beginning in FY26. The planned phasing of the project was changed to secure funding earlier because of concerns over coming state budget constraints. According to the CIP sheet, it was “revised from a limited renovation to a multi-systemic renovation [focusing on] electrical, roof, HVAC, windows and doors,” ceiling, plumbing fixtures, ADA restroom modifications and locker room renovations. Costs are now $54.4M, realizing a $13M savings from changes in scope.
Kim Howe, SMCPS Director of Capital Planning, told the Commissioners the roof and HVAC are being moved forward in the project. This means an additional $7.8M is needed in FY26. The state provides a larger amount of funding for renovations, so moving the roof/HVAC forward allows the school system to ask for more money upfront. With the state budget facing a shortfall of several billion over the coming years, waiting to ask could mean no money is available from the state, placing a heavier burden on local government.
Commissioners closely eyed other CIPs for potential savings and cuts to make up the $12.9M shortfall. Assuming the $2.8M in FY25 CIP savings already identified, they set out to find $11.1M by pushing out, or cutting several projects. Shannon Farms, a planned park south of Gate 3, was pushed out two years freeing $5.3M. Approximately $1M was pulled from Phase 8 of the Three Notch Trail, stretching from Hollywood Rd to Friendship School Rd, as the project moved from FY26 to FY29. The Southampton neighborhood revitalization project, phases 2 and 3, were pushed out to FY27 and FY28, respectively, releasing $3.1M. This means upgrades to storm drains and street improvements for portions of Lincoln, Cambridge, and Brighton Avenues, Southampton Drive, and Thurman Davis Lane will wait.
Roundabouts at Pegg Rd/Westbury Blvd and Wildewood Pkwy/Blvd are planned for construction in FY26. However, FY27 roundabouts, including Golden Beach Rd/All Faith Church Rd, will be delayed a year, eliminating $1.5M. Other intersections being considered for roundabouts are Golden Beach Rd/Triangle Dr., FDR/First Colony Blvd, St. John’s/Sandy Bottom Rd, and Tulagi Place/Shangri-La Drive once the Tulagi Place extension is completed. These areas may wait several more years for improvements as funding is moved. The Commissioners also pushed back Myrtle Point Park by at least two years, reducing expenses by another $3.1M. This project has been on the books, in one form or another, for two decades.
Several new CIPs were presented to the Commissioners as well. The first, console replacements for the 911 center, may see completion sooner than the FY31 request. A total project cost of $658,560, the Maryland 911 Board will fund $452K and the Commissioners will likely grant the remainder from their reserve. $800K for HVAC chiller replacements at the Potomac Building, Health Department, and Lexington Park Library will upgrade systems that have reached end of life in FY31.
The Sheriff’s Office requested nearly $811K in FY31 to harden the District 3 office in California. This would include upgrades like “ballistic-rated storefront windows, bollards, a vehicle barrier gate to protect the garage area, and blinds,” according to the CIP sheet. The largest project, a $44.77M firearms range facility, would begin in FY31 with design costs at $2.5M. Remaining funds would be allocated as construction begins, sometime in FY32 or after. When asked about the project during the meeting, Sheriff Steve Hall reminded the Commissioners that firearms training is mandated for each type of firearm. Currently, the Sheriff’s Office relies on use of a shooting range on base, and booking space at Flat Broke Shooters when it’s available. If use of either space isn’t available, there is a direct impact on the ability to train and certify employees, said Sheriff Hall.
It’s still early in the process, so there are many changes to come for the budget. Residents can weigh in at the public forum in April 2025. The Commissioners are always available for feedback, throughout the budget process, at csmc@stmaryscountymd.gov.
