For Immediate Release: Thursday, May 19, 2016
The Montgomery County Council today reached unanimous preliminary agreement on a $5.3 billion County operating budget for Fiscal Year 2017, a 4 percent increase over the approved budget for FY 2016. The Council also unanimously agreed on a $4.6 billion Capital Improvements Program (CIP) for Fiscal Years 2017-2022.
Montgomery County Council reaches
unanimous preliminary agreement on
$5.3 billion operating budget for FY 2017 and
six-year Capital Improvements Program
Council President Nancy Floreen: ‘We have approved an Education First budget,
and we have engaged in an unprecedented partnership to rebalance
our spending in a way that is responsible to all’
Lower class size, achievement gap, school construction,
public safety, ‘safety net’ are priorities
Library funding increased, $692 tax credit for homeowners
ROCKVILLE, Md., May 19, 2016—The Montgomery County Council today reached unanimous preliminary agreement on a $5.3 billion County operating budget for Fiscal Year 2017, a 4 percent increase over the approved budget for FY 2016. The Council also unanimously agreed on a $4.6 billion Capital Improvements Program (CIP) for Fiscal Years 2017-2022.
“We have approved an Education First budget, and we have engaged in an unprecedented partnership to rebalance our spending in a way that is responsible to all,” said Council President Nancy Floreen. “The Council’s budget plan makes the course correction required for the needs of today and the long-term future of our County.”
The Council is scheduled to formally adopt the FY17 operating budget and the FY17-22 CIP on Thursday, May 26. The budget will go into effect on July 1.
Council President Floreen, Vice President Roger Berliner and Councilmembers Marc Elrich, Tom Hucker, Sidney Katz, George Leventhal, Nancy Navarro, Craig Rice and Hans Riemer unanimously supported the operating budget and the CIP.
The CIP provides nearly $200 million in new funding, and will address the County’s most urgent capital needs—school construction and community infrastructure. Through a rate change to the recordation tax on property sales, the Council added nearly $170 million to accommodate school capacity and building improvement needs. The Council approved $1.73 billion over the next six years for Montgomery County Public Schools’ CIP, which is the highest funding level ever provided. The bill also will generate about $4 million in additional revenue annually for rental assistance to low and moderate income households.
Since March 15, when County Executive Leggett presented his recommended budget, the Council has worked with the community, and with department and agency leaders and union representatives, to determine how best to redirect resources to benefit County schools and residents. The result is a recalibrated budget that focuses on class size, the achievement gap, and enhanced College and County government services.
The Council approved a 1 percent general wage adjustment for all County employees, a 3.5 percent service increment for eligible County employees, and a longevity increase for eligible County employees. The Council also requested adjustments in proposed pay increases for employees of MCPS and Montgomery College, which for many employees were in the 8 percent range, to be consistent with the 4.5 percent increase approved for County employees. The change will increase support for school, College and County government services by a total of $87 million in FY17-18, $32 million in FY17 and $55 million in FY18.
“We all share many core goals,” said Council President Floreen. “These goals include closing the educational achievement gap, reducing class size, making decisions that are both achievable in the short term and sustainable over time, and ensuring that residents see results for any additional investments we ask them to make.
“To achieve these goals, we have engaged in an unprecedented partnership among all County agencies and their employee unions. We have worked together to rebalance our spending in a way that’s responsible to all, including students, taxpayers and employees.”
The FY17 operating budget is the first in eight years to require property tax revenue above the Charter limit, which is based on last year’s revenue plus an inflation adjustment. The weighted average property tax rate will be $1.03 per $100 of assessed value, up 3.9 cents from the current rate. Owner-occupants of principal residences will receive a $692 property tax credit. For the average taxable assessment in FY17, $464,441, the property tax will be $4,075, up $326 (8.7 percent). Of this amount, $143 is the result of rising assessments, and $183 is attributable to the rate increase.
The Council approved a FY17 budget for MCPS of $2.46 billion, an increase of $135.9 million (5.9 percent) over the approved FY16 level. The County contribution is $1.62 billion, $89.3 million above the State’s Maintenance of Effort funding level. The Council also approved a total of $300.2 million in additional County support for MCPS in other budgets.
The Council’s partnership with the Board of Education to reallocate funds will:
The Council approved a FY17 budget for Montgomery College of $312.5 million, an increase of $2.6 million (0.8 percent). This includes $4.5 million over the County Executive’s recommended budget to strengthen programming and services at the College.
The Council approved a FY17 operating budget (including all operating funds, debt service and reserve) for the Maryland-National Capital Park and Planning Commission of $173.6 million, an increase of $6.6 million (4 percent) over the FY16 approved budget.
The Council continued to give high priority to public safety. The Police Department budget provides funding for all officers to be equipped with body cameras and adds 12 new police officers, at least six of whom will be assigned to the fast-growing Clarksburg/Germantown area. The Fire and Rescue Service budget enhances Advanced Life Support (ALS) and other services. For both departments, the Council added resources to the County Executive’s request.
The Council approved a budget of $41.7 million for County libraries, a 2.3 percent increase from the approved FY16 level. Funding is included to operate an interim Wheaton Library while the new Wheaton Library/Recreation Center is under construction. Weekend hours will be extended at four branches. The approved budget is the first Libraries budget to exceed the FY09 budget of $41.4 million, before significant cuts during the Great Recession.
The Council approved a budget of $34.3 million for the Department of Recreation, an increase of $1.89 million (6.2 percent) from the FY16 approved budget. The budget reflects a net increase of 15 full-time and six part-time positions—the fifth straight year that the department's expenditures and positions have increased. The FY17 budget is the first that is higher than the FY09 level before the recession.
The budget includes $24.3 million for the Working Families Income Supplement, an increase of $3.18 million (15.1 percent) from the FY16 approved budget. A portion of that ($1.2 million) is the result of increasing the match from 95 percent to 100 percent, consistent with Bill 8-13. [The average County cost per credit is $583—a Montgomery County resident eligible to receive an earned income tax credit from the State in the average amount of $583 would actually receive a check from the State for $1,176—$583 from the State and an additional $583 from the County.]
For the Washington Suburban Sanitary Commission, on May 12 the Montgomery and Prince George’s County Councils jointly approved the second year phase-in of the Infrastructure Investment Fee and a 3.0 percent rate increase. The average monthly residential customer impact would be $2.00 for the infrastructure fee and $1.28 for the rate increase. The WSSC plans to initiate a comprehensive study of its rate structure in FY17, consistent with the recommendations of both councils.
The Council provided $4 million for the Public Election Fund, in addition to the County Executive’s $1 million allocation. In 2014 the Council enacted and the County Executive signed a bill that would create a fund that candidates could opt to use to fund their campaigns. The new system will start with the 2018 cycle. Last year the Council provided $1 million in initial support for the fund.
The Council approved $3.11 million for 122 Council community grants to nonprofit organizations to support a variety of programs and services, including food, shelter and other safety net services. The funding also supports proposals from community nonprofit organizations to provide after-school programs for County youth, programs to help disabled residents attain employment and programs to improve quality of life for seniors. This amount is in addition to the $7.04 million for 201 discretionary community grants recommended by the County Executive.
The complete list of Council community grants and the approved reconciliation list can be found at http://tinyurl.com/hxmu2df .
Councilmember statements on the budget:
Council Vice President Roger Berliner said: “Our budget reflects a fundamental reality—our nationally recognized school system needs a very substantial investment. And we are making that investment. But, while this is an education first budget, it is not an education only budget. We addressed critical priorities and attended to core government services such as funding to keep our roads in good repair, adding police and fire and rescue personnel, and strengthening our safety net for the most vulnerable. I am particularly pleased that our budget includes all-day bus service for the community of Tobytown, funding to combat hunger among low-income children and seniors, enhancements to our tree maintenance budget, increased transportation options for seniors and more resources to keep us green.
“This budget also reflects an unprecedented level of cooperation between the Board of Education, Montgomery College and the Council—for which I am very grateful. Without the true spirit of partnership that occurred, this budget would not have been possible."
Councilmember Marc Elrich said: “This is truly a landmark budget that reflects our commitment to addressing the needs of our schools which are at the core of our identity as a County. We heard the community loud and clear about their concerns for the school system. Faced with growing socio-economic challenges, a persistent achievement gap, over-crowded schools and classrooms, we have made the hard decisions to provide resources to expand classroom space and to improve student to teacher ratios, so that we effectively deliver instruction. More classrooms and smaller class size had to go together. This investment will not only benefit the students, which is justification enough to do it, but it truly benefits the wider community where the quality of schools affects the value of your property, perceptions about neighborhoods and decisions of employers to locate here.
“This budget also provides additional resources to safety net programs, increases investment in maintaining our infrastructure and enhances our commitment to the environment. In public safety, we continued the commitment to bring our services up to a level that reflects the growth that has occurred in the County by making sure that we have staffing and equipment when and where it is needed. This budget reflects a constructive partnership between the Council, MCPS, Montgomery College, our employee unions and our residents—all of whom helped directly to shape this budget. It includes a tax increase, but we could not/cannot address the challenges we face without it. Since the recession, we have been required to set aside tens of millions of dollars in reserve accounts that previously would have been used to fund services—simply put, these requirements have reduced revenues available for services. Having to choose between declining service and its implications for our quality of life versus raising additional revenue, I believe we made the right choice.”
Councilmember Tom Hucker said: “This Council ran in 2014 promising not to point fingers, but to address the challenges facing our school system. We promised to work collaboratively with the School Board to ensure school funding addressed classroom size and the opportunity gap. We fulfilled that promise by passing this historic budget that increases our investments in K-12 education and school construction, in workforce development and innovation, affordable housing and in a strong safety net and infrastructure system.
“This budget also provides new funds in District 5 including expanded hours at the Silver Spring Library, a new client service coordinator for East County, enhancements to our childcare and after-school programs, increased staffing at fire stations in Hillandale and Burtonsville, the reopening of the Maydale Nature Center, commemorative signs at historic African-American Heritage sites throughout the County, additional funds for stump removal, tree planting and street maintenance, additional public safety personnel and funding for the American Film Institute’s Silver Theater and Cultural Center and the YMCA of Greater Metropolitan Washington.”
Councilmember Sidney Katz said: “This budget is the end result of many weeks of hard work. We have heard from hundreds of County residents about what is important to them and how they want us to prioritize the many competing interests. We have discussed every aspect of this budget in our respective committees and as a committee of the whole. We have listened to the public, and we have listened to each other. Only after very careful consideration were we able to put forward a responsible budget that focuses on what is most important.
“I have said over and over again that raising taxes should be our method of last resort. I wish the tax rate could have been lower than what is being approved in this budget. But I also know that government needs funds in order to function—and for this, we owe thanks to the taxpayers of Montgomery County. All of these things we are doing to improve the quality of life in our County, they are not magically paid for. The money for this budget comes out of the pockets of each and every one of us. Ultimately, we have to balance revenue with the need to do what is right. We need to make wise investments. That is really what this budget is about: hope for the future of Montgomery County.”
Councilmember Nancy Navarro said: “Montgomery County is at a crossroads. This year, the Council had the option of staying on the path of the status quo or taking bold steps to move our County forward. This budget represents a course correction to stabilize our school system and improve services to our residents.
“Since the Great Recession, the Council has balanced budgets by slashing essential services residents rely on like libraries, recreation programs and programs that serve our most vulnerable. The most significant fiscal decision we made, possibly since we became a Charter County, was to re-base the school system budget. This year, we asked our County and school employees to take a smaller raise and our taxpayers to pay more in the Property and Recordation Tax. These decisions were not easy, but they will allow us to invest $90 million in our schools above the state-mandated level. These funds will be used to reduce class size, implement programs to close the achievement gap and address school overcrowding.
“I am proud that this budget protects programs that serve our most vulnerable residents. The Council added nearly $7 million to the Health and Human Services budget and expanded access to child care by funding the Child Care Expansion and Quality Enhancement Initiative. We continued to fund the Children’s Opportunity Fund and the Building Educated Leaders for Life (BELL) public-private partnership that will serve more than 1,000 elementary school students at Title 1 schools each summer.
“This budget continues to prioritize public safety by increasing the number of police officers in targeted areas. The Council also added needed funds to the County’s Street Outreach Network, which provides prevention and intervention activities for youth at risk of joining a gang. We also expanded funding for more positive youth development activities to make sure young people have a safe place to go after school, on the weekends, and during the summer.
“Finally, I am extremely pleased the Council added $4 million to the Public Election Fund to support clean elections and ensure our public campaign finance system can be a model for all jurisdictions in Maryland.
“Budgets are about tough choices. They are also a reflection of our values and who we are as a society. I believe we will look back at the FY17 budget as a turning point. This is the moment we decided the status quo and business as usual would not suffice. As a community, we are making investments today that will ensure a brighter future for all of our residents.”
Councilmember Craig Rice said: “As chair of the Education Committee, I am proud this year’s budget reflects a prodigious shift in not only the way we shaped it, but the close collaboration with our education partners in doing so. The FY17 budget was able to achieve putting education first, providing the resources needed for Montgomery County Public Schools and Montgomery College to address the prevailing needs of lowering class size and closing the achievement gap. At the beginning of this year, I hosted, along with MCPS Interim Superintendent Bowers and Montgomery College President Dr. Pollard, five Education Budget forums held throughout the County. These forums reinforced what we knew was important to our County and its residents: reducing class size, addressing the achievement gap and contending with our school capacity issues.
“Montgomery College is a gem of our County and our State and one of the best community colleges in the nation! Serving more than 60,000 students, our community college works valiantly to ensure students continue to receive a quality education and meet the growing needs within our County. I am so pleased that this budget has added $4.5 million to the college for programmatic enhancements that include: I-BEST scholarships for job training and skill enhancement courses to support workforce readiness; ACES expansion to two more high schools so an additional 240 students can get the support they need to apply for and succeed in college; and Achieving the Promise Initiative that will help close the achievement gap for an additional 400 students by providing them faculty mentors and coaches to help them accomplish their education goals. This budget has also allowed Montgomery College to move forward with its much needed Takoma Park/Silver Spring Math and Science Center, ensuring that their campus has the capacity to provide students with the latest technology and resources they need in this field.
“The collaboration with both Montgomery College and Montgomery County Public Schools has reflected how passionate we all are to give our students every opportunity possible to succeed in their education. MCPS has experienced eight years of record enrollment growth, and the problems of overcrowded classrooms, our long-standing achievement gap and inadequate infrastructure needed to be addressed. It is a great school system that will be even greater as a result of this budget. This year’s operating budget includes $36 million in programmatic enhancements that include critical areas such as: increased number of teachers to reduce class size, additional Chromebooks and more counselors, para-educators and focus teachers. The Council has committed to funding our schools a significant and unprecedented $89.3 million over MOE to help our school system implement these changes needed. We also maximized our resources to address our badly needed school capacity issue, replace aging, worn out physical infrastructure, heating and cooling systems and roof replacement.
“This budget is a comprehensive one, and ensures that our County’s most critically needed services received increased funding so that they can provide the best level of service possible for everyone. Those providers who work daily with our most vulnerable residents will receive an increase in funding to continue to provide the high quality work they do. We have enhanced our Weekend Food/Smartsack program so we can reach more kids in need of weekend meals outside of school. In 2015, we reached a historical first of zero veterans homeless in our County, and we have made sure in this budget to continue funding to ensure it stays this way.
“Our public service departments have also seen an increase in funding to ensure they remain at health and strong levels. This year’s budget includes additional police officers, fire and rescue personnel, increased paramedic capacity and restoration of staffing at various area fire stations. It is our obligation to ensure that our law enforcement and fire and rescue personnel remain a strong viable group to keep our communities safe and secure.
“I am proud of what we have been able to accomplish this budget year, and I give thanks to Montgomery College, Montgomery County Public Schools, all of our unions and parent and community organizations for their unwavering dedication and commitment in their partnership with us to do what it takes to make this historic budget come to fruition. That partnership made this budget possible; in fact it was the only way we could have achieved it.”
Councilmember Hans Riemer said: “After years of treading water, this budget moves us forward with smaller class sizes for our kids, more services for our residents and sustainable compensation increases for employees. We made some hard choices, but I am confident that taxpayers will agree they are getting excellent value for their hard-earned dollars, and Montgomery County will continue to be a wonderful place to work, live and raise a family.
“I am most proud of the team effort between the Council and the Board of Education that led to record funding for schools, millions of dollars of school construction funding to relieve overcrowding and an increase in many other County services. I am especially pleased that some of the items I championed were included in this budget, including two new programs to promote Maker and STEM programming in the County, an expansion of after school programs for at-risk middle schoolers and funding our new public financing system to get special interest money out of politics. Much thanks to Council President Floreen and the rest of my colleagues, along with the Board of Education and all the other partners, who worked together to create a budget that truly reflects our values.”
Key Council actions regarding the Fiscal Year 2017 Montgomery County Operating Budget and the Fiscal Years 2017-22 Capital Improvements Program:
Montgomery County Public Schools
Montgomery College
Fire and Rescue Service
Police
Health and Human Services
Agriculture
Arts and Humanities Council
Board of Elections
Circuit Court
Community Engagement
Community Grants
Community Use of Public Facilities
Consumer Protection
Correction and Rehabilitation
Economic Development
Energy and Environment
$100,000 added to provide education and outreach as required in Bill 52-14 (that bans application of pesticides to lawns and certain public grass areas).
Finance
General Services
Housing and Community Affairs
Housing Initiative Fund and Housing First
Human Resources
Legislative Branch Community Outreach
Legislative Oversight
Libraries
Maryland-National Capital Park and Planning Commission
Montgomery Coalition for Adult English Literacy (MCAEL)
Municipal Tax Duplication
Procurement
Public Election Fund
Public Information
Recreation
Sheriff’s Office
State’s Attorney
Technology Services
Transit Services
Transportation
Urban Districts
Zoning and Administrative Hearings
FY 2017-22 Capital Improvements Program
The County’s Capital Improvements Program (CIP) is the focus of major review every two years. Among the projects approved for the FY 2017-22 CIP are:
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Release ID: 16-166