Baltimore County Council Chair Izzy Patoka is in a tough spot.

On one hand, he’s among several county leaders across Maryland who is having some figurative heartburn about the state’s impending $2.7 billion deficit.

He also needs a new Baltimore County executive, someone who traditionally creates the county budget and can lead through economic challenges. Current executive Johnny Olszewski Jr., is leaving the county for Congress, where he will be sworn in on Jan. 3.

“We have a difficult budget ahead, and that’s why one of the really important qualities we’re going to need in a new county executive is someone who can manage budgets in a difficult time,” Patoka said.

During a historic state budget crisis and looming uncertainty about federal funding, Maryland’s county leaders are grappling with how to weather the storms ahead.

County leaders may have to choose from unpopular options, such as raising taxes, trimming services and pinching pennies. So far, they have differing outlooks on the future of their local economies and the Moore administration’s handling of the state budget.

But Gov. Wes Moore and county leaders agree Maryland’s economic situation is partly due to the end of American Rescue Plan dollars. Some county leaders who talked to The Baltimore Sun compared the cash infusion during the pandemic to a sugar high they’re now coming down from.

Moore at Thursday night’s Maryland Association of County Conference session told concerned county leaders to complete the mission: “Don’t give up the ship.”

He said Maryland’s economic growth lagged the nation for years between 2017 to 2022, yet the state’s budget increased by 70% during that time.

“Bigger budgets do not always correlate to better results,” Moore said.

For two years in a row, Moore said his administration shrank the size of state government, while making significant achievements for Marylanders, like targeting childhood hunger, as well as lowering unemployment and violent crime rates statewide.

Maryland’s fiscal year ahead is challenging, with a projected $2.7 billion deficit and slowing state revenue growth. In addition to economic challenges within the state, lawmakers are concerned that the incoming Trump administration may make large-scale federal job cuts and decline to fund Maryland infrastructure projects, like the Red Line and reconstruction of the Francis Scott Key bridge.

Moore believes Maryland’s economy must grow to reduce its dependence on federal funds and jobs and lower the state’s deficit.

The governor unveiled plans to make Maryland more business-friendly, particularly to the life sciences, information technology, and aerospace and defense industries. He said he would sign an executive order in the coming days that will streamline business permitting, initiate the state’s strategy for those three new sectors, and coordinate economic development with local governments.

County leaders are especially worried about continued funding for the Blueprint for Maryland’s Future education plan.

Harford County Executive Bob Cassilly criticized the Blueprint plan, saying, “We need to take a serious look at the Blueprint. The state’s not prepared to move forward with this thing and the counties certainly aren’t under its current configuration.”

He said the Blueprint plan needs a new set of priorities. Some Blueprint recommendations, such as establishing career ladders for teachers or allowing teachers more “collaborative” time outside of the classroom for planning, grading and professional development, are creating more costs than benefits to local jurisdictions, according to Cassilly.

In Anne Arundel, County Executive Steuart Pittman said he’s already seen success from implementing the Blueprint recommendations. “I would not like to see them abandon those five pillars, but I do expect to see some timelines extended and some adjustments in how some things get done,” he said.

Howard County Executive Calvin Ball said that funding education has to be a priority. He said every year of his administration, he’s tried to fund education more than the maintenance of effort rate, with last year going over $50 million beyond that baseline.

Moore said in his speech at the conference that the Blueprint will remain key to Maryland’s education strategy, but it will be modified. The collaborative time provision of the plan won’t be realistic until there are 15,000 more teachers in the state, he said, adding that he will introduce legislation to pause that requirement.

“I believe in the promise of the Blueprint, and I definitely believe in the promise of our children, but the realization of that promise doesn’t come through strict adherence to formulas at all costs. The realization of that promise comes from making sure that our investments are actually linked to student success,” the governor said.

To prepare for the economic uncertainties ahead before the state can see any potential effects from the governor’s new business plan, county leaders are deciding between making budget cuts and raising taxes.

Patoka said deappropriating and reallocating dormant, unspent funds could be a possible solution to make budgetary ends meet. However, “the only tool we have is to cut,” he said, explaining that the county council is not allowed to add or reallocate funds.

Last year, he said he identified $15 million of potential cuts, but the council only approved about $600,000.

Patoka added that he would be happy to assist the next county executive with the budget, considering his experience as the former division chief for capital budgeting in Baltimore City.

Pittman admitted taxes have gone up in recent years, but said those increases were necessary and prevented Anne Arundel County from having “a fiscal crisis right now.”

When asked if he has considered raising taxes in Howard County, Ball said he’s been focused on “ensuring that we use the resources that we have.”

“We’ve used our money efficiently and effectively and we continue to invest on things that actually grow our economy,” he explained.

Cassilly championed some of the recent belt-tightening measures he’s instituted in Harford County, like buying out retirees, consolidating leases and studying how to more efficiently use the county’s vehicles.

However, he said that those cuts would not be enough to account for the requested $60 million in increased spending for education in Harford County, let alone the increased budget request from the Sheriff’s office.

“They’re gonna have some tough decisions to make about tax increases, cuts and/or some combination of the two,” Pittman said of the governor and the general assembly.

“It’s not the first time we’ve been in this place, and it probably won’t be the last.”

Have a news tip? Contact Racquel Bazos at rbazos @baltsun.com, 443-813-0770 or on X as @rzbworks.