Shortly after County Executive Marc Elrich announced his proposed $8 billion Fiscal Year 2027 operating budget that includes a 6.3% property tax increase as well as several other tax increases, several Montgomery County Councilmembers vowed to take a hard look in an effort to pare back at least some of the increases.
Support for the School System
The largest part of the proposed budget is for education. Montgomery County Public Schools account for 52% of the budget and Montgomery College accounts for 3%.
Elrich fully funded the Board of Education’s budget request. That includes an additional $189.9 million increase over the current year.
He included “everything they asked for,” Elrich said of the Board of Education.
“I repeat. Kids, education. It matters,” he said, noting that some of the increases will go to special education, security and reduced class size.
Elrich noted that the percent of county children receiving free and reduced meals rose from 40% to 43%. The number of people experiencing homelessness also rose during the current fiscal year.
“We are in challenging times,” Elrich said, noting that cuts from the federal government, job losses and $45 million expenditure for snow removal made it difficult to create a balanced budget that continues to include a strong safety net.
Proposed Income Tax Increase
While the budget includes $19 million worth of cuts, it also includes an income tax rate increase from 3.2 to 3.3%. “This is not a huge tax increase. are not going to break anybody’s back on this,” Elrich said.
Anyone earning $40,000 or less in taxable income will be exempt from the increase.
Additional Fees
Fees that will rise include ones for permitting, water quality protection charges, 911 fee increase from emergency communication costs and recycling and resource management.
Also proposed is a tax on all commercial properties within one-half mile of a planned Bus Rapid Transit corridor.
Maintaining Services
Elrich included additional funds to retain affordable housing and cover health care that lost income from the federal government. The proposal includes $152.7 million in investments for affordable housing, rental assistance and neighborhood revitalization. It also pumps in $19.4 million to the Montgomery County Green Bank.
Public safety amounts for 18% of the budget, and the debt services amounts to 10%.
The proposed budget includes 10.6% in reserves, which is $44 million more than the state requires.
Fani-Gonzalez Expresses Reservations
At least three councilmembers vowed to take a tough look at any tax or fee increases.
“Now it’s time for the Council to dig into the data, peel back the layers of budget assumptions, and make sure every dollar in this more than $8 billion operating budget proposal is going toward its highest and best use,” said Council President Natali Fani-González.
She said her bar to vote for increased taxes is “appropriately high,” adding, “We also know that working families are hurting right now, with rising food, housing, utility and energy costs outpacing gains in wages.”
She “will be closely evaluating” the 6.3 cent property tax increase, 3.3 percent local tax increase, increased solid waste charges to fund long haul trucking of the county’s trash out of the area and the creation of special taxing districts.
In a previous news briefing, Fani-González, said that a conversation about reducing the budget “is missing.” She noted, “We are going to have a brand-new county executive at the end of this year, hopefully that will bring everyone together to have this conversation.”
Friedson Rejects New Taxes
“Despite anemic job growth, the County Executive’s recommended $8.019 billion budget is $2.4 billion higher than just eight years ago, a 44 percent increase, as wages for working families have stagnated,” Friedson said.
Glass Prioritizes Social Safety Net
Councilmember Evan Glass, also a candidate for county executive, criticized Elrich’s proposed budget.
“The budget proposed by the County Executive does little to ease the burden families are feeling, and I remain deeply skeptical of the proposed tax increases. A 6.3 percent property tax increase and a 3.3 percent income tax rate would place an even heavier burden on residents who are already stretched thin,” Glass said.
“My focus throughout this budget process will be to prioritize our social safety net — including public health and safety, housing, and education. That means making the most of the resources we have by supporting our workforce, reducing duplication, and streamlining government so it works better for residents.
Teachers’ Union Approves
Educators, on the other hand, were extremely pleased with the proposal.
““What this budget does is recognize the real needs that students and families have in our school district, while remaining cognizant of the fiscal challenges that we continue to face” said MCEA President David Stein.
“This is the solutions-oriented policymaking we expect from leaders in Montgomery County,” said Stein. “This past year, we have seen unprecedented consensus amongst MCPS stakeholders on the need to address our special education crisis, enhance school security, and make sure that all students have excellent educators in their classrooms. It’s now time for the County Council to step up and get this budget funded.”
Public Hearing Schedule
County councilmembers now will review Elrich’s proposals and then vote on the final budget in May. Public hearings will be held April 7, April 8 and April. 9. Those interested in testifying at the public hearings in person or virtually can sign up on the Council’s webpage or by calling 240-777-7803.
Listen to Elrich’s budget presentation.
