March 2, 2020
Media Contact:
Scott Peterson, Director of Communications, Office of Public Information, 202-277-9412
ELLICOTT CITY, MD – Today, Howard County Executive Calvin Ball released the Spending Affordability Advisory Committee’s Report for the Fiscal Year 2021 (FY21). The Committee is tasked with making recommendations to the County Executive on revenue projections, General Obligation bond authorizations, long-term fiscal outlook, and County revenue and spending patterns.
“As we approach the FY 2021 budget process, I encourage all residents to read the Spending Affordability Advisory Committee Report to understand the challenges and limitations as a result of our growing expenditures and slowing revenues,” said Ball. “I appreciate the time and effort of all the members of the Spending Affordability Advisory Committee and the important insight this independent residents committee provides to our budget process.”
The Committee reviewed the revenue projections and expenditure requests for FY21 and beyond. Based on these presentations, the Committee determined that Howard County's revenue growth is projected to average 2-3% over the next few years but that expenditure requests are considerably outpacing that growth. County government’s revenues are based on two primary revenue streams, property (49%) and income taxes (41%), which together account for 90% of General Fund revenues.
The full report includes the following sections:
- Projected General Fund revenues for the upcoming fiscal year;
- Recommended new county debt (General Obligation bonds) authorization;
- An analysis of the long-term fiscal outlook including multi-year projections; and
- Other findings and/or recommendations that the Committee deems appropriate.
In FY 2021, revenues are projected to grow by 3.3% based on a State reported 2.5% growth in the assessable base and a relatively strong performance in income tax, but expenditure requests from different entities and agencies exceeded projected revenues by $64 million. The gap is projected to continue to grow during the next two to three years when revenues could be further stressed by a potential recession or a slowdown in the national economy.
Based on the economic and fiscal challenges facing the County, the Committee recommended continued expenditure control and caution in new debt authorization to align expenditures with fiscal realities. The Committee also recommended developing a strategic multi-year plan to address these challenges proactively and balance different community needs.
The full report can be read online here.