Officials painted a grim picture of Montgomery County’s finances in the coming years during the last council meeting of 2025 on Tuesday, attributing much of the shortfalls to cuts by the federal government and unemployment.
“Most of the decrease in projected revenues is due to softening in the county’s property and income taxes in future fiscal years based on assumptions that the federal administration’s policy decisions will result in reduced economic activity or a possible recession,” according to a briefing submitted to the Montgomery County Council.
Total revenues from this fiscal year through fiscal 2031 are expected to be $853.7 million lower compared to what was predicted just six months ago.
Councilmembers ended the briefing by predicting a tough year ahead when it comes to creating future balanced budgets, and several members took aim specifically at County Executive Marc Elrich for not updating them about the constant changes in federal and state funding that currently is ongoing.
“I am very worried for 2027,” said Council President Natali Fani-González. “I, myself, am getting ready to make some painful decisions. We are dealing with hard times.”
Councilmember Will Jawando said the federal government “is dealing us a really horrible hand.” He pointed out that there are “lots of millionaires” living in the county who will receive a large federal tax refund. Their refunds are coming from cuts to programs for the needy, he said.
Councilmember Kate Stewart noted that the council “keeps asking the executive for details.” She added, “We have asked, and we are told there is planning happening.”
“We have been asking for a year now,” Councilmember Andrew Friedson said, noting that guidance from the county executive is needed.
When questioned after the meeting, a spokesperson for Elrich texted MCM with the following response:
“The Administration has regular weekly meetings with Council leadership and Council administration, as well as always responsive in a timely manner to any inquiries we receive from the Council. Furthermore, the County Executive and [his] staff regularly communicate with individual councilmembers after hours and on weekends on a daily basis. We have and will continue to keep the Council in the loop and address any questions or concerns throughout the forthcoming budget process.”
