Maryland Gov. Wes Moore proposed a $70.8 billion fiscal 2027 operating budget on Jan. 21, 2026, that allocates funds to state agencies and local governments, including St. Mary’s, Charles and Calvert counties in Southern Maryland. The plan, effective July 1, 2026, through June 30, 2027, provides aid for education, court operations, natural resources, health facilities and higher education centers in the region while shifting $39 million in increased retirement costs for K-12 education, community colleges and libraries from the state to local jurisdictions statewide.
State officials prepared the document through the Department of Budget and Management. Local governments in the three counties receive direct grants, tax distributions and program support. The budget maintains prior funding levels in many areas while capping increases for community colleges at 3 percent and flat-funding disparity grants to locals. Residents in the counties benefit from state aid that supplements local taxes for schools, roads and public services. The proposal follows state law requiring balanced spending based on revenue estimates and addresses a $1.5 billion gap through $1.1 billion in cash transfers and other measures without tax or fee increases.
State aid to local education forms a major component affecting the three counties. The College of Southern Maryland, serving Calvert, Charles and St. Mary’s counties, receives increased funding. For fiscal 2027, the college gets $21,267,665 in direct grants, up from $19,777,947 in fiscal 2026. This reflects audited full-time equivalent students rising to 3,873.56 from 3,715.55. The aid formula uses student enrollment and state wealth metrics to determine shares [FY2027-Volume2.pdf page 290]. The increase supports operations at campuses in La Plata, Leonardtown, Prince Frederick and Waldorf.
Separately, the Southern Maryland Regional Higher Education Center receives $6,252,768 in total expenditures for fiscal 2027, up from $6,230,603 in fiscal 2026. This funding covers salaries, fringe benefits and fixed charges for support services. The center offers upper-level undergraduate and graduate programs through partnerships with state universities [FY2027-Volume2.pdf page 274]. The budget caps community college funding increases at 3 percent based on enrollment, which may limit further growth beyond the calculated amounts
The budget includes provisions for K-12 education aid, such as the Guaranteed Tax Base program. This provides additional state funds to counties with less than 80 percent of the statewide average wealth per pupil that exceed minimum local effort requirements. The program aims to equalize funding across jurisdictions. For fiscal 2027, the state uses local education effort calculations, dividing each county’s local share of major education aid by its wealth. An education effort index compares this to the statewide five-year average.
Counties with indices above 1.0 qualify for aid based on per-pupil wealth gaps [FY2027-Volume2.pdf page 100]. Charles County receives $2,681,890 in Guaranteed Tax Base aid for fiscal 2027, up from an estimated $2,602,342 in fiscal 2026 but down from $5,830,020 actual in fiscal 2025. Calvert and St. Mary’s counties do not qualify for this aid in fiscal 2027. Out-of-county placements also receive support, funding students placed in schools outside their home county due to court orders or state agency decisions. For fiscal 2026, this totals $4,500,000 statewide, with adjustments possible for fiscal 2027 based on needs [FY2027-Volume2.pdf page 87]. In Southern Maryland, this aids students in foster care or with special needs attending schools in neighboring counties.
Court operations in the three counties see specific allocations through the Judiciary. For Charles County, the Clerk of the Circuit Court office receives $5,373,580 in total expenditures for fiscal 2027, including $5,162,016 for salaries and fringe benefits with 49 authorized positions. This is up from $4,869,316 in fiscal 2026. Funding sources include $4,808,863 in net general funds and $553,547 in special funds [FY2027-Volume1.pdf page 40]. St. Mary’s County Clerk of the Circuit Court gets $2,861,223 for fiscal 2027, with $2,772,991 for salaries and 26 positions, compared to $2,749,869 in fiscal 2026. Net general funds total $2,280,790 [FY2027-Volume1.pdf page 45]. Calvert County’s allocations tie to broader judiciary funding, though specific clerk details align with similar increases for staffing and operations in smaller jurisdictions. The Office of the Public Defender provides $18,785 to Charles County for fiscal 2027, similar to $18,654 in fiscal 2026 [FY2027-Volume1.pdf page 54].
Natural resources and recreation funding impacts Calvert County through the Jefferson Patterson Park and Museum. Operated by the Department of Planning, the park receives $5,090,558 in total expenditures for fiscal 2027, up from $4,670,320 in fiscal 2026. This includes $3,124,830 for salaries and fringe benefits with 26 authorized positions, plus $751,128 for contractual services. Funding supports financial and technical assistance to historical sites statewide, with the park serving as a key facility for archaeology and education.
Sources include $4,025,478 in net general funds and $909,956 in special funds, such as Program Open Space transfer tax [FY2027-Volume1.pdf page 206]. The Department of Natural Resources’ Land Acquisition and Planning program allocates funds from the Calvert County Gaming Tax Fund, providing $1,600,000 for fiscal 2027, consistent with fiscal 2026. This supports land conservation and recreational development [FY2027-Volume1.pdf page 449].
Transportation aid affects infrastructure in the counties. Highway User Revenues, apportioned based on population and road miles, provide funds for local roads. For fiscal 2027, the three counties receive shares from a statewide pool estimated at $437,633,665 for all local governments, flat from $437,422,492 in fiscal 2026. Specifically, Calvert County gets $3,238,194 total, with $2,452,550 to the county and $785,644 to municipalities. Charles County receives $4,915,893 total, $3,823,349 to the county and $1,092,544 to municipalities. St. Mary’s County gets $3,442,140 total, $3,061,954 to the county and $380,186 to municipalities [FY2027-Volume1.pdf page 398].
These estimates are based on the Department of Transportation’s financial plan as of Dec. 15, 2025 [FY2027-Volume1.pdf page 375]. Charles County benefits from mentions in common carrier regulations, including taxicab oversight. The Public Service Commission enforces rules for for-hire vehicles in Charles County, with $2,594,749 allocated for investigations statewide in fiscal 2027 [FY2027-Volume1.pdf page 79]. Admissions and Amusement Tax distributions include $1,600,000 from the Calvert County Gaming Tax Fund for fiscal 2027, aiding local Blueprint for Maryland’s Future requirements [FY2027-Volume1.pdf page 12].
Health and human services allocations include maintenance for closed facilities. The Behavioral Health Administration funds upkeep for the former Regional Institute for Children and Adolescents – Southern Maryland, closed June 30, 2008. Fiscal 2027 allowance totals $827,593, with $306,533 for salaries and $289,625 for utilities [FY2027-Volume1.pdf page 570]. This ensures property readiness for potential reuse.
Tax credits and economic development programs have limited direct impact. In the Urban Enterprise Zone Credits, St. Mary’s County receives no allocation for fiscal 2027, with zero participating businesses. Charles and Calvert counties are not listed as recipients in the program, which totals $31,406,550 statewide [FY2027-Volume1.pdf page 299]. Public safety training involves county agencies, with commissions certifying officers across jurisdictions.
The budget reflects state priorities for equity in funding. For instance, education formulas adjust for wealth disparities, benefiting less affluent areas like parts of Southern Maryland. Total state aid to community colleges rises to $436,172,411 in fiscal 2027 from $404,517,219 in fiscal 2026, with Southern Maryland’s share contributing to regional workforce development [FY2027-Volume2.pdf page 290]. Corrections facilities in nearby counties indirectly support employment in the region.
A key change is the shift in retirement costs. The state shifts 50 percent of increased retirement costs for K-12 teachers, community college staff and librarians to local jurisdictions, totaling $39 million statewide. This means counties must cover half the growth in these pension expenses, previously borne fully by the state. No breakdown by county is available, but the three counties’ shares would be proportional to their education staff and enrollment. Disparity grants, which aid poorer jurisdictions, remain flat-funded. Overall local aid increases slightly despite these measures.
Local officials in St. Mary’s, Charles and Calvert can use these funds for priorities like school improvements and park maintenance. The allocations maintain services without major cuts, aligning with revenue growth. Statewide, the budget emphasizes public education and safety, with Southern Maryland receiving proportional shares.
In summary, the fiscal 2027 budget provides stable support to Southern Maryland, with increases in education and natural resources. Residents see benefits in schools and community facilities, funded through state general and special funds. The $39 million pension shift represents the primary transfer of costs to counties.