FY 2026 Final Operating Budget Page Two
ANALYSIS
To better understand the budgetary changes and their associated drivers, the changes have been analyzed by mandated and discretionary expenses.
FY 2026 PrelimBudget
$450.6
Mandated Increases
8.1 5.1
Additions
Reductions
(7.4)
FY 2026 Final Operating Budget
$456.3
NOTE: Numbers may not sum to total due to rounding
Attachment 1 – identifies the mandated and discretionary additions and reductions.
Mandated changes increase the budget by $8.1 million and are as follows:
• Base salaries (0101 – excludes MSP) increase by $4.2 million mostly due to: o Reclassifications (grade/step/classification changes) totaling $2.7 million. o A 1% COLA for civilian and sworn employees totaling $1.5 million.
• Health insurance (0151 & 0152) increases $2.3 million due to updated actual activity.
• Pension (0161) costs increase by $0.8 million.
• Maryland State Police Retirement (0165) costs increase by $0.6 million
• Social Security (0151) costs increase by $0.3 million.
• Law Enforcement Officers’ Pension System (0169) costs increase by $0.1 million.
• All other costs result in a $0.2 million decrease, primarily due to Maryland State Police retired health costs.
The operating budget includes $5.1 million in additional discretionary spending. The key variances are as follows:
• Insurance (1309) increases by $1.5 million due to expected premium increases.
• Management Studies & Consultants (0821) increases $1.0 million primarily due to Environmental, Social, and Governance (ESG) analysis and reporting.
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