The effects of last year’s federal government Sequestration have finally come home to roost in St. Mary’s County. Chief Financial Officer Elaine Kramer reported Tuesday to the county commissioners that income tax revenues for the fiscal year that ends today (June 30) are $2,347,132 below what was budgeted. “Certainly the decline in revenue is associated with Sequestration,” Kramer told the commissioners.
The revenue decline was not unexpected and the commissioners put a cushion in the budget in case it happened. The commissioners agreed on Tuesday to use monies in the emergency reserve and OPEB (Other Post-Employment Benefits) reserve accounts, which had not been used, to plug the hole in the income tax revenue account.
Commissioner Todd Morgan (R: 4th) observed that the effect of the Sequestration impact is not over yet. “We should be prudent as we move forward,” he said.
Commissioner President Francis “Jack” Russell said, “We are certainly getting a consistent message from the state that revenues are going to be off.”
The commissioners unanimously agreed to move the monies in the two accounts to cover the shortfall.
