County Executive Marcus Henry announced a long-term plan to stabilize the county’s finances at Tuesday's budget address.
Henry laid out a gloomy fiscal landscape, detailing a deficit exceeding $36 million in the upcoming fiscal year — and a 17.2% tax hike and spending cuts needed to fill it.
The county spent the last several years leaning on American Rescue Plan funds doled out by the federal government to help municipalities and states recover from the effects of the pandemic.
“Roughly half of that federal money supported ongoing operations, salaries, programs and services that residents relied on every day,” Henry explained. “That was appropriate during a crisis, but those dollars were temporary. The expenses were not… Responsible government should not fund permanent costs with one time money.”
Henry asked department leaders to report what funding they need for FY 27 and that initial request was over $425 million, 9% higher than this year’s proposed budget.
Henry’s proposed operational budget is about $388 million, which includes a hiring pause, service reductions and spending cuts – along with that 17 percent tax hike. That’s 4.4% higher than the FY 26 operational budget.
And Henry’s proposed capital budget totals $75.7 million, 10.3% lower than FY 26.
More on the proposed property tax increase
Henry acknowledged the 17.2% tax increase’s likely negative impact on property owners. He said it’s an unfortunate necessity to ensure the county stays above water in the long term.
“To our seniors, we know this hits you especially hard,” Henry said. “Please don't forget, if you're over the age of 65, you may be eligible for various credits and exemptions. We're always hearing from people who are eligible and have not applied. I implore you, the deadline is June 1, and my team is standing by, ready to assist you.”
Folks can expect to see their property taxes increase, but the 17.2% increase does not apply to the whole bill. 81% of property tax bills go to school districts. The remaining 19% goes to the county.
Henry’s proposed increase would only apply to 19% of a property owner’s bill.
The median homeowner in the county has a property value of $378 thousand. Their increase would be about $102 per year, or about $8.50 a month. A rowhome in Wilmington’s east side worth $150 thousand would pay about $16 more per year, or $1.34 per month.
“For many, this is a shock that will be hard to navigate,” Henry said. “I hear that, and I commit to doing everything I can to mitigate the pain.”
Henry’s budget prioritizes public safety, reduces community programming funding
Henry’s proposed budget includes a litany of reductions to account for the county’s sizable deficit.
The county initiated a hiring freeze on non-essential positions earlier this year, leaving 56 positions unfilled. Henry’s budget proposed leaving those roles unfilled and unfunded, totalling $5.7 million. That’s a 3% cut in full-time positions for the county, but it did not result in any terminations or salary cuts.
“We've asked every department to find efficiencies and look for savings in every corner of this operation, and we're working to identify new revenue sources so that we're not relying on temporary solutions in the future,” Henry said.
The budget also changes library schedules to be closed one day per week. There will always be at least one library open per day in the county to ensure folks have access to the space and its resources. Several projects – including the Glasgow Library and Southern Paramedic Station – are now delayed one year.
“It’ll get done,” Henry said at a briefing.
Henry also advised $2.8 million in funding cuts to community services programs like the Sleep Under the Stars event, which is paused for a year.
The cuts totaled about $18.5 million from the operating budget, less than half of the county’s $42 million deficit.
“So here's the bottom line,” Henry said. “After exhausting internal savings and every alternative, we must ask for a managed tax increase to protect core county services.”
That being said, 69 cents out of every county dollar go to public safety, from police to emergency management and 911 operators. And that increased by $5.2 million this year to go toward increases to salaries and paramedic coverage.
County Council’s first budget hearing is set for April 16. Henry said he expects it will take some workshopping to pass the budget by the May 26 final vote.
