Thu Feb 13 11:00:00 UTC 2025: ## Baltimore County Executive Faces Tough Budget Choices, Rules Out Tax Hikes

Baltimore County, MD – One month into her term, Baltimore County Executive Kathy Klausmeier is tackling a challenging budget situation, rejecting a nearly 11% spending increase requested by the school system. Klausmeier, the county’s first female executive, stated in an interview with WYPR that the $127 million in new funds available for the fiscal year beginning in July is insufficient to meet all demands.

The school system’s request, citing needs for special education, pre-K expansion, and staff benefits, is facing significant pushback. Klausmeier emphasized the competing needs of other county agencies, including police, fire, and EMS. Budget Director Kevin Reed explained that roughly half of the new funds are allocated to mandatory costs like employee healthcare and debt repayment, leaving limited flexibility. He anticipates increases of around 3% for county agencies and the school system.

Several factors contribute to the tight budget. The state’s $3 billion budget shortfall is shifting $17 million in costs onto the county, and uncertainty surrounds the future of approximately $400 million in annual federal aid, which funds vital services including housing vouchers and salaries for around 600 county employees. Inflation, dwindling COVID relief funds, and the county’s maxed-out borrowing capacity further complicate the situation.

Despite the financial pressures, Klausmeier has ruled out tax increases. She reiterated a previous commitment not to run for the office in 2026, though she emphasized her intention to serve effectively throughout her two-year term, focusing on long-term planning for the county’s future. Klausmeier will present her first budget proposal to the County Council in April.

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