Following non-binding straw votes Tuesday, Montgomery County Councilmembers agreed not to raise taxes and most likely not increase the amount of general obligations bonds to cover one-time expenditures.
During a discussion of the Fiscal Year 2025 budget proposed by Executive Marc Elrich, the council seemed most concerned with a high increase in wage compensations and emphasis on filling positions as well as continuing programs that were funded under one-time expenditures.
Overall, wages are up between seven and eight percent, according to Elrich’s proposed budget, which must be approved by the council.
Elrich proposed increasing the general obligation bonds by $20 million from $280 million to $300 million in his proposed $7.1 billion budget.
A $20 million increase would exceed the county council’s spending affordability guidelines and necessitate a special vote.
Elrich’s budget includes an expected 8.5% growth in property taxes due to a larger base, and a 6.5% increase in income taxes received. Property taxes are expected to grow by $178.6 million, and income taxes will rise by $126 million.
The reduction real estate transfer tax is expected to bring in 35 million fewer dollars.
The debt is listed as 7% of the operating budget.
Jennifer Bryant, director of the Office of Management and Budget, said that additional funds are needed to cover programs increased or added during the pandemic, including for food and housing. The federal government no longer funds these programs.
“The need is not decreasing. We are seeing increased needs,” Bryant told councilmembers. “The county executive chose to keep those programs intact.”
Other increases pointed out by Bryant included the costs of inflation and a highly competitive labor market.
The council has only begin reviewing the budget. On Tuesday, several members voiced their preliminary concerns.
“Affordability of living in Montgomery County is a huge issue,” said Councilmember Dawn Luedtke. That is what is being talked about at the grocery and the sidelines of sports games, she noted.
“People are struggling,” agreed Councilmember Natali Fani-González.
Councilmember Marilyn Balcombe pointed to the deficit and said, “We have to do everything we can to get that down.” She questioned whether some programs could be cut, asking, “Aren’t some programs not working?”
Friedson called for the straw votes at the end of the discussion, saying it was important to get a feel for where councilmembers stood. I think we need a sense of where we are.”
Several members objected, including Councilmembers Gabe Albornoz and Will Jawando, saying it was too early to vote, even if the vote was non-binding.
The vote for a tax increase received no support at all. The one for adding $20 million in general obligation bonds received six votes against and five abstentions.
