During public hearings Tuesday, all eight speakers strongly condemned the property and income tax increases proposed in the Fiscal Year 2027 operating budget.
County Executive Marc Elrich’s proposed budget includes a 6.3% property increase and a rise in the income tax rate from 3.2% to 3.3%.
Council President Natali Fani-González unveiled a proposed budget that includes no property tax increase and progressive income tax structure, with rates ranging from 2.5% to 3.3%. She said that would provide tax relief to about 96% of households, while residents earning more than $300,000 would pay “slightly more.”
Her proposal includes a uniform 2% general wage adjustment for compensation for all county employees, which union members strongly condemn.
Although county councilmembers appear to be in agreement that taxes will not be increased, the residents didn’t take any chances during the public hearing in Tuesday’s council meeting.
Public Response
“I live in debt,” declared Charles Berman. He has suffered three strokes, his business lost a money and he owes three-quarters of a million dollars “just to keep my people employed,” he told councilmembers. He urged them not to raise taxes.
“If residents have to tighten their belts,” why can’t the county do the same, asked Mohit Sehgal, a resident and business owner in the county.
With high inflation and rising gasoline and utility prices, now is not the time to add another economic burden, declared Bhavneet Bajaj of Rockville. He recently lost federal contracts and employees and his revenue is down, yet “the budget keeps increasing,” he said.
Angela Franco, president and CEO of the Montgomery County Chamber of Commerce, went on record against any tax increase, calling affordability in the county a major challenge.
“That is precisely why this council must do everything possible within its means to adopt a budget that lives within its means,” she said, acknowledging that “requires making difficult but responsible decisions.”
According to Franco, the county’s operating budget in 2015 was $4.99 billion. The proposed budget is almost $8 billion. Staff has grown a lot during that time, she added.
Representing the Greater Capital Area Association of Realtors, Jackie Bennett referred to the seat of the county government and said, the “problem is right here in Rockville.” She said the government is operating with “unchecked growth,” adding, “We feel quite ignored.”
Glenn Wright, a 70-year resident of Montgomery County who is retired and living on a fixed income, said his property tax rose 66.5% “just in the last seven years.”
Teresa Buescher said Montgomery County Public Schools have made “many, many poor choices” and residents shouldn’t have to pay for them, especially residents like her who sent their children to Catholic school.
The goal of schools here should be academic excellence but instead seems to be focused on ideology, she noted. “Public schools need to get their act together,” she said.
Buescher suggested the county should consider using a two-tier system that includes one rate for residents whose students attend public schools and another rate for those without children in the public schools.
Paul Saletan of Silver Spring suggested the county move away from property taxes and toward a progressive income tax.
The council’s Government Operations and Fiscal Policy will hold work sessions on both the proposed property and income taxes on April 29.
