FY 2027 Final Operating Budget Page Three
The operating budget includes $7.5 million in additional discretionary spending. The key variances are as follows: • Insurance – non-State Treasurer’s Office (STO) payments (1309) increase by $1.1 million. STO is budgeting an increase of 12.5% over FY 2026 actual expenditures across all lines of insurance. • Other Contractual Services cost (0899) increase of $1.0 million primarily driven by: o MSP overhead rate increase from 24.88% to 29.38% accounts for $0.6 million. o Emergency snow removal services at JFK highway account for $0.3 million. o Gartner for Finance Leaders accounts for a $0.1 million increase This is a subscription service that provides immediate and ongoing access to specialized research for financial function and technology information, predictive data modeling research, proprietary peer benchmarks, and executive advisory services. • Vehicle Purchases – Cars, Light Truck costs (0701) increase by $0.8 million due to vehicle orders that were rolled over into the FY 2027 budget because the vehicles will not be received in FY 2026 as anticipated. • Other Replacement Equipment costs (1099) increase by $0.6 million due to the replacement of outside MDT Police drones, new holsters/equipment for the MDTA Police academy, laptops for MDTA Police academy candidates, and the replacement of patrol rifles. • Management Studies & Consultants (0821) increases by a net $0.5 million primarily due to: o MD-Star Project - $0.8 million increase. o I-95/MD 222 Interchange Study - $0.3 million increase. o Milligan Partners Succession Planning - $0.1 million increase. o Environmental, Social, and Governance (Governance Risk Impact Report) cost - $0.5 million reduction. o Other - $0.2 million reduction across remaining responsibility centers (RCs). • Large Vehicle Maintenance & Repair costs (0732) increase by $0.5 million due to higher market driven labor and parts costs. • Fiscal Services costs (0829) increase by $0.4 million for merchant account services and interchange fees associated with customer service center and E- ZPass Interagency Group credit card payments.
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