Howard County Executive Calvin Ball on Monday proposed a $2.3 billion operating budget for the next fiscal year, recommending $100 million in spending cuts to mitigate “extraordinary fiscal headwinds” at the federal and state level.

Ball’s proposal signals economic nervousness in one of the state’s most affluent counties at a time when President Donald Trump has directed officials to shrink the size of the federal workforce and budget. The county executive said that such workforce reduction disproportionately affects Howard County, where an estimated 50,000 federal workers and contractors live. As some residents lose their jobs, the jurisdiction faces a possible dip in revenues from income taxes.

At the same time, lawmakers in Annapolis addressed a $3 billion shortfall in part by shifting responsibility to the county level for certain costs, including teacher pensions, support for Howard Community College and property tax assessments. As a result, Howard County expects to pick up the tab for an additional $8 million in mandated expenses in the coming year, Ball said.

“As a local government, we have a duty, obligation and requirement to propose a balanced budget,” Ball told reporters Monday. He praised his team for working “incredibly hard” to find solutions to the budget hurdles that did not increase taxes on residents, lay off county employees or compromise on essential services.

Ball’s proposal is still subject to public input and will need final approval from the Howard County Council.

Here’s what you need to know about his operating budget proposal:

Where are the cuts coming from?

Some of the most notable cuts that Ball is proposing include a 5% reduction in county employee premium health care contributions, which were previously among the highest in the state, at 90%. Under Ball’s proposal, the county will contribute 85% — leaving employees to pick up an estimated $20 to $60 per paycheck.

The county executive described the reduction as “very challenging,” but said it brings Howard County more in line with other jurisdictions around the region, Ball said.

Ball also plans to freeze hiring for 40 unfilled county jobs, primarily from the departments of public works and recreation and parks. Officials said they will reevaluate the freeze and, if possible, adjust the number of open positions before the end of the fiscal year, Ball said.

Other proposed cuts include a 10% reduction in costs associated with travel, training and internal transportation. The county is also considering limiting new departmental initiatives and intermittently closing non-critical government buildings to reduce energy usage.

Ball’s proposal would also set aside $2.5 million to address future unforeseen challenges and federal impacts that may emerge.

What are the funding priorities?

Ball said his budget prioritizes investments in public safety, health care, housing and nonprofits.

The fire department is getting an extra $5 million for capital projects, most of which is earmarked for land acquisition toward a new fire station. The police department is getting $4.6 million in new funding to support its staffing and operational costs. Ball earmarked nearly $800,000 in additional funding for equipment upgrades, ammunition and the addition of a school resource officer at the newly opened Guilford Park High School. The State’s Attorney’s Office will also receive $163,000 to support the special-victims unit and a body-worn-camera program.

Investments in health care include $5 million to help expand emergency room capacity by 29 beds at the Johns Hopkins Howard County Medical Center. Another $10.7 million is going toward programs that support homeownership, housing rehabilitation and homelessness prevention.

Ball cited federal and state funding uncertainty as a reason for allocating a one-time sum of $1.07 million to the Howard County Economic Development Authority to support business growth.

What’s the school system getting?

Ball’s proposal would fund $800 million of the Board of Education’s nearly $1.26 billion budget request. The county’s portion includes $39 million of new dollars for the school system.

“Our top priority in the FY 26 [fiscal year] budget was to direct significant resources to the Howard County Public School System, to support our unparalleled education system,” Ball said Monday evening.

Last month, Ball sent a letter to the school board calling its funding request “unattainable and unaffordable.” The school board sought $107.3 million above what the county is legally required to contribute.

Maryland’s Maintenance of Effort law mandates that funding per pupil be equal to or greater than what was provided in the previous year. Ball is looking to provide the school system with roughly $39.3 million above the county’s legal requirement.

In his letter, Ball said that given the financial outlook at both the state and national levels, “it is surprising that the Board of Education proposed a budget that does not take into consideration all of these external and extenuating circumstances.”

For example, the county is now on the hook for educator pensions, thanks to a new state mandate. The pensions add $6.7 million to the county’s budget.

Ball’s budget request sets aside 64% of all new county revenue growth for the school system, or $45.7 million in new dollars. That percentage, “reflects a significant commitment that required great focus and effort,” Ball said Monday.

The county executive is also looking to use $1.5 million in one-time funding to provide for school safety and security needs. This funding is pending approval from the Maryland Department of Education.

The County Council will hold a series of public hearings and work sessions in the coming weeks, with adoption of the budget set for May 21. The new fiscal year begins July 1.