Council President Natali Fani-González’s proposal to reduce the proposal fiscal 2027 operating budget and its tax increases was met with strong opposition by union members, Executive Marc Elrich and Councilmember Will Jawando.
County Executive Marc Elrich has proposed an $8 billion operating budget that includes both a property tax increase of 6.3% and a rise in the county income tax rate from 3.2% to 3.3%.
Fani-González countered with her own plan, a proposed progressive income tax structure, with rates ranging from 2.5% to 3.3%. She said her budget would provide tax relief to about 96% of households, while residents earning more than $300,000 would pay “slightly more.”
She also called for reducing MCPS’ budget request by $59 million and a uniform 2% general wage adjustment for compensation for all public employees.
Executive Marc Elrich
Elrich said he is still reviewing Fani-González’s proposal but is hopeful the council will honor union contracts and fully support schools. He called it “ironic given that early in this budget cycle, I proposed a new formula for raising bond limits,” which she opposed, he said.
He also pointed out that Fani-González’s proposal “to eliminate the homeowner tax credit, known as ITOC, would result in most homeowners paying more property taxes than they would have under my proposal.”
Elrich added that Fani-González’s proposal “most low-income workers would likely see less money in their pockets.”
School Unions
Montgomery County Public Schools’ three unions jointly urged the council to honor employee contracts and “advance school priorities.”
Those unions are Service Employees International Union Local 500, Montgomery County Association of Administrators and Principals and Montgomery County Education Association.
“We are also deeply concerned about Council President Natali Fani-Gonzalez’s proposed funding plan that balances the County’s budget on the backs of hardworking students and county employees and would result in the County reneging on its commitments to MCPS educators, educator support professionals, county employees, students, and their families,” union members said in a joint statement.
“Educators rely on the contractual commitments that are made to them – they make everyday and long-term decisions based on these commitments. We are discouraged that the Council President’s plan proposes violating those commitments,” said MCEA president David Stein. “The Council cannot and should not balance the County’s fiscal challenges on the backs of students and county employees.”
Councilmember Will Jawando
On Friday, Jawando held a news conference to explain his budget stance.
He no longer supports a property tax increase and strongly backs retaining all previously negotiated union contracts. He also called for full funding for Montgomery County Public Schools and higher funding for the nonprofits that provide a safety net for residents.
Not honoring union contracts amounts to “a broken promise,” he said. “Collective bargaining is not a courtesy. It’s a right.”
During his news conference in Rockville, a few dozen union members stood beside him and applauded their support.
Jawando also called for residents earning $1.5 million or more to pay a 3.3% income tax rate. Those earning less would pay 3.2%.
He acknowledged additional cuts in the proposed budget would be needed to fully fund the schools and union contracts and that council will be “making tough decisions through the next six weeks.”
In case you missed my response from Friday. pic.twitter.com/AVxOTzlHrc
— Montgomery County, MD – County Exec Marc Elrich (@MontCoExec) April 20, 2026
