At the request of the Gloucester County Board of Supervisors, County Administrator Carol Steele presented information on the full budget requests for fiscal year 2027 during Monday night’s meeting held in the colonial courthouse.
The FY27 budget requests total over $96 million with revenues projected to reach $89.5 million. “That leaves us with an operating gap of $6.5 million,” said Steele. “That is, again, using the equalized tax rate and no other increases to taxes or fees.”
Steele reviewed the major expenditures creating this gap, which include personnel expenses ($2.68 million), school request ($2.9 million), increased facility maintenance repair and replacement (FMRR) funding ($589,400), increased external requests ($295,228), transfer to utilities fund ($935,684) and additional software fees ($568,280).
Included in recommended personnel expenses are a 2.8 percent cost of living adjustment that is partially state-funded, step plan implementation for the Gloucester County Sheriff’s Office, career ladder salary adjustments and eight new employees. There are $666,764 in expected vacancy savings.
The county provides three School Resources Officers to the schools through a state grant, which has now run out. To keep these SROs in the school, the county would need to pay $315,728.
At this time, the health insurance increase is expected to be 30 percent. Steele expressed her hope that this rate will be reduced at least by half during her next budget presentation.
She has recommended adjusting the county step salary increase from 0.66 percent to a full percent. “That is to keep up with tenure and experience,” she said. This would also help with morale and retention.
In Gloucester County Public Schools Superintendent Dr. Anthony Vladu’s recommended budget, there are nearly $3 million in total additional funds requested for FY27. This is primarily due to a 15 percent health insurance increase ($1.48 million), 2 percent compensation increase ($1 million) and loss of state revenue as a result of declining enrollment ($851,370). The Gloucester County School Board has not adopted its budget yet.
The proposed budget includes fully funding FMRR using $750,000 of its fund balance and $609,800 of operating funds, leaving an estimated remainder of $822,499 in the FMRR fund balance.
External organizations requests make up 8 percent of the county’s budget. Requests for FY27 include civic organizations ($244,000), required services ($6.48 million) and county partners ($751,740). Total requests are nearly $300,000 more than what was allotted for FY26.
In capital improvements, $2.8 million of the unassigned fund balance is currently earmarked for the Botetourt Elementary School fire system ($200,000), virtual server replacement ($150,000), county paving ($205,000), school buses ($1.2 million), Gloucester Point Beach Park improvement ($714,787), election equipment ($240,000) and inflation contingency ($109,921).
Steele then presented on potential revenue opportunities for the board’s consideration. Potential revenue sources presented include implementing a cigarette tax ($236,000+), implementing a boat tax ($622,126), implementing a boat fee ($96,542+), increasing the meals tax rate ($472,616+), increasing building permit fees ($29,624+), increasing the personal property tax rate ($47,183+) and increasing the real estate tax rate ($655,033+).
Implementing all of these revenue streams at their minimum rates would only produce just over $2.1 million. There is a budget gap of $6.5 million if all requests are fully funded.
“I wish there was better news because this is a hard budget,” said Steele. “I’ve said that several times. You all are in a really rough position.”
The board will have its joint budget meeting with the school board Tuesday in the T.C. Walker Education Center auditorium, beginning at 6 p.m.