Prince George's County budget deficit.
Prince George's County faced significant budget deficits, around $130-$170 million for FY 2026, driven by rising costs (like state education mandates), uncertainty from federal job impacts (due to proximity to D.C.), and revenue not keeping pace with spending, leading to hiring freezes and budget cuts in most agencies (except Public Safety/Schools) while trying to balance core services and investments.
Key Figures & Timelines:
FY 2025: A $171 million shortfall prompted hiring freezes and spending reductions.
FY 2026: A projected $130–$170 million deficit, addressed with a $5.8 billion balanced budget by the Council, avoiding tax hikes but necessitating deep cuts.
Main Causes:
Blueprint for Maryland's Future: Increased county contributions for education.
Federal Uncertainty: Potential mass layoffs of federal workers impacting local tax revenue.
Expenditure Growth: Costs rising faster than revenue.
State Budget Cuts: Proposed reductions by the Governor.
Inflation & Higher Rates: General economic pressures.
Solutions & Actions:
Hiring Freeze: Over 800 positions frozen for FY 2025.
Agency Cuts: Reductions in most departments for FY 2026.
Strategic Budgeting: Protecting public safety, schools (PGCPS), and housing investments.
New Revenue: Exploring options like a telecommunications tax.
Data Center Development: Pursuing data centers to boost revenue, despite community concerns.
Outlook:
The county anticipates deficits could grow to over $400 million by FY 2030 if trends continue.
