Following a challenging fiscal 2025 budget cycle marked by flat funding that raised concerns about the county’s financial future, Harford County Executive Bob Cassilly says his revenue plan for the county focuses on economic growth and efficiencies.

Government has to live within its means, the county executive said in an interview this week. With this guiding belief, Cassilly’s plan for the economic future of the county aims to stretch revenue through reduced government spending.

“The easy way out would be to increase taxes and that sends the wrong signal because taxpayers are struggling and higher taxes would only drive businesses away,” Cassilly said. “It has been about making government efficient so every tax dollar matters to the maximum extent.”

Through spending efficiency, Cassilly said, his administration has reduced the number of leases the county pays, bringing government personnel under the same roof at the Harford County Administration Building in Bel Air.

Cassilly’s most controversial efficiency, which caused concern from some county officials and residents, was his flat funding of many departments in the county’s fiscal 2025 budget. Fiscal 2025 began July 1.

The FY25 Citizen Budget Advisory Committee — formed to give outside perspectives to the county government during the budget cycle — said consecutive years of flat funding could cause stagnant growth and further fiscal complications.

Cassilly explained that by not giving departments more money to work with in this year’s budget, the county could continue to examine how it could be more efficient.

“When we are flatlining departments, we are not saying we are degrading government. What it is saying is we are looking at how we operate,” Cassilly said. “I am not going to grow the government until I know that what we are spending, we are spending well.”

The evaluation of government spending is a collaborative process that involves all county government department heads, he said.

Each year, Cassilly said he aims for 5% overall economic growth in the county. When funding departments in the budget, increases should be on par with the growth of the county. For example, if the county achieved growth of 5%, departments could have their budget increased by 5% or less.

Cassilly also noted that the state funds some areas of the county’s budget, such as the public school system and sheriff’s office, and therefore the county does not have full control over spending increases.

State-mandated funding increases, such as the Blueprint for Maryland’s Future, require local governments to increase funding at levels that outpace growth, he said.

“Public education is very important to me, and it is critical to our quality of life here, but we can’t look at public education and public safety and say they are immune to the economy,” Cassilly said. “The rate of growth of the government has to equal the rate of growth of the private sector.”

When the state mandates that counties increase funding in ways that outpace growth, counties are forced to make difficult decisions, Cassilly said — the county can fund the mandate and take that money from other areas of the budget, or it can increase taxes to cover the increases.

Cassilly’s administration increased 911 fees, development fees and trash service tipping fees as a way to “make government pay for itself,” which resulted in an additional $15 million in revenue last year.

Harford County also reported a $22 million increase in property tax revenue during the past two years due to rising property values. However, because of higher interest rates, Cassilly said Harford County saw a reduction of about $13 million in revenue from transfer recordation and housing sales, which does not worry him.

“Interest rates are going to come back down in the future and when they do, things will turn around,” Cassilly said.

Much of Cassilly’s revenue plan involves waiting out factors such as increased funding mandates and high interest rates, which he believes will eventually simmer and county revenues will go up.

Until then, Cassilly said he will continue to work with local businesses to grow Harford’s economy and foster business development.

“Our small businesses are the backbone of our economy and business is doing well here,” Cassilly said. “The fix for increasing revenue is to do the right thing and send the right message to our business community to show that we are consistent and committed to acting in the best interest of the community.”

Cassilly’s administration is now working on the budget for fiscal 2026 and does not have revenue or expense projections yet, but should the county be in a position where it is forced to flat fund numerous departments again, Cassilly said he would “hold the line” and continue to work to grow the local economy.

“I am confident that once we finish our efforts to grow the economy and efficiently exercise the government, we will be well off,” Cassilly said. “When the going gets tough, the tough get going and these are tough times. We just need to collaborate and work hard because we are on the right track, and we are going to be fine.”