CECIL COUNTY — The Cecil County Council unanimously passed County Executive Danielle Hornberger’s Fiscal Year 2024 (FY24) budget as proposed Tuesday night. The $427.1 million FY24 budget – a nearly $114 million increase from FY23 due to cost increases – continues Hornberger’s three-year streak of implementing tax cuts by matching Maryland’s Constant Yield Tax Rate.
In matching the state’s Constant Yield Tax Rate – the tax rate a jurisdiction would have to impose to obtain the same amount of property tax revenue in FY24 – Hornberger has lowered property taxes from $1.0143 per $100 of assessed property value to $0.9924 per $100 assessed value and lowered business property taxes from $2.5358 per $100 of assessed property value to $2.4810 per $100 of assessed value.
Similar to FY23’s budget, that had property tax cuts and income tax cuts, the FY24 budget includes a $0.05 tax deduction per earned $100 — reducing the income tax rate in Cecil County from 2.8 percent to 2.75 percent.
Hornberger attributes her ability to provide tax cuts in each of her budgets to her fiscally conservative principles that she says has contributed to Cecil County’s historically high fund balance of $108 million.
With a focus in giving tax dollars back to Cecil County taxpayers, Hornberger, for the first time in Cecil County history, has implemented a $20 million property tax rebate for qualifying homeowners.
The rebate will serve as a credit on a homeowner’s county property tax bill beginning July 1, 2023. The goal of the property tax rebate is to lower or eliminate property taxes for homeowners so residents can use the money as they would like.
In a move that has caused much debate and controversy, the FY24 budget, like Hornberger’s previous budgets, will fund Cecil County Public Schools (CCPS) at Maintenance of Effort (MOE) – the minimum a county government is allowed by state law to fund their school system.
FY24’s MOE – set by the Maryland State Department of Education – is roughly $700,000 lower than FY23, at $88.5 million. Hornberger says that her funding of CCPS in FY24 is historic as her budget outlines over $13 million in school capital projects and $10 million in a committed fund that she says will prevent school funding related tax increases in the future.
“Education funding is something that needs to be evaluated immediately,” said Councilman Al Miller while stating his concerns with the FY24 budget and its funding of CCPS. “We must listen to our citizens and continue to support the education of our children because they are our future workforce.”
The use of $20 million in American Rescue Plan (ARPA) funds is also outlined in the FY24 budget as being spread across six infrastructure projects in the county like two new paramedic stations and a firearms training facility.
As for the remaining 40 capital improvement projects outlined in the FY24 budget, the construction of the new North East Middle and High School, the Belvidere Road I-95 Interchange and the Holloway Beach Sewer Replacement are among the most anticipated.
In the salary section of Hornberger’s budget, each county employee is set to receive a four percent cost of living adjustment, as well as a merit-based step increase on their yearly anniversary.
Additionally, members of the Cecil County law enforcement, corrections and paramedic EMS labor unions as well as emergency service dispatchers and prosecutors within the State’s Attorneys office received a $10,000 salary increase. Hornberger said that the increase will allow Cecil County to offer competitive salaries to first responders and make Cecil County a safer place to live and work.
