Cambridge leaders push back against potential tax differential increases

MARYLAND. – The Dorchester County Council is working on the budget for fiscal year 2026. Currently, they are proposing a new tax plan, however, Cambridge leaders are urging caution.

Council President Lenny Pfeffer said the state deficit put the county in a tough position. “There’s several things in the budget that we didn’t want to do, but unfortunately, we’re being forced to by these unfunded state mandates.”

The intense General Assembly session brought lawmakers and Governor Wes Moore to agree to push financial deficits down to local governments.

In Dorchester County, that could mean removing the tax differential for the city of Cambridge. Which is an idea that Mayor Lajan Cephas states are unreasonable. “The decision to eliminate the tax differential means the residents of Cambridge will pay twice for some services.”

Mayor Cephas told WMDT that she and the city commissioners feel sympathy toward the county, but claim it’s still unfair.

“With no increase of services and paying twice for the same service already provided to city residents by the city, which is at no cost to the county – this is simply a double taxation.”

The county must address a $6.2 million deficit. They have already raised the 911 service fee and cut summer school for 2025.

Pfeffer said they’ve had their hands tied, and need to find solutions to the problem. “This is one of the few ways we found to meet those demands.”

According to Mayor Cephas – removing the tax differential means city residents would pay an additional $925,000 dollars a year.

She doesn’t think the increases will impact the city budget. She calls Cambridge financially stable, and believes the city is in a good position to grow stronger.

Mayor Cephas urges residents to visit the county meeting. “I think it’s important for residents of Cambridge and residents of Hurlock to go to the next county meeting, which is May 6th at 6pm.”

The meeting will be located at 501 Court Lane in Cambridge.