Full FY23 budget, slated for introduction on Friday, will save taxpayers money while building on success cited by Moody’s in upgrading the County’s credit rating
Annapolis, MD - Anne Arundel County Executive Steuart Pittman announced tax savings and other key taxpayer benefits in a preview of his FY23 budget proposal, which will be introduced to the County Council on Friday, April 30.
“This budget proposal removes our structural deficit, reduces borrowing, increases reserves, lowers taxes, and provides record investments - in education, public safety, parks, health, and smart infrastructure,” County Executive Steuart Pittman said. “I often say that we are working together to make Anne Arundel County the best place for all. Today, I am saying that we have worked together to create the Best Budget - For All.”
The County Executive’s FY23 budget proposal includes key taxpayer benefits:
Lower income tax
- Last year, the County Executive worked hard to pass the Tax Relief for Working Families Act in the Maryland General Assembly.
- This year, the County Executive’s budget proposal uses the bill’s new authority to lower the income tax rate on the first $50,000 of taxable income for every taxpayer, from 2.81% to 2.70%.
- This will save each taxpayer up to $50, and keeps Anne Arundel County’s income tax rate the lowest in the Baltimore region.
Property tax rate set below the cap
- Anne Arundel County’s property tax revenue cap went into effect in 1993.
- Since that time, the property tax rate has been set at the maximum level allowed in 24 out of 28 years. This year, that rate is 96.3 cents per $100 value.
- In the FY 23 budget proposal, the County Executive calls for a rate 3 cents lower, 93.3 cents. This saves the average homeowner $100, and keeps the County’s property tax rate significantly lower than any of its central Maryland neighbors.
Structural deficit eliminated
- The County Executive’s FY23 budget proposal completely eliminates the structural deficit.
Reduced Borrowing
- For the first time ever, the county will reduce borrowing for capital projects, from $170 million to $160 million.
- That is possible because conservative budgeting left a fund balance that allows us to invest a record $205 million up-front - or paygo - protecting future taxpayers.
Rainy Day Fund
- The County’s record rainy day fund impressed the bond rating agencies by showing the County is well-protected from future economic downturns.
- The County Executive’s FY23 budget proposal grows that fund again - to the maximum allowable by law.
“For the last three years, the county adopted responsible budgets that have positioned us on a strong fiscal foundation,” said Chris Trumbauer, Budget Officer. “We continue to see the benefits of that strategy, with a proposed fiscal year 2023 budget that secures our AAA bond rating, increases our reserves, lowers the amount of new debt, and cuts taxes for residents.”
