The workgroup will determine and assess the County’s schools, transportation and parks infrastructure needs and provide recommendations on how funding for those needs can be generated in an equitable and sustainable way.  

“As a County, we need to examine and improve how we fund our schools, transportation, and parks infrastructure,” Council President Stewart said. “Impact taxes as currently conceived do not work. This workgroup will assist us by exploring potential solutions to how we fund infrastructure. We need an infrastructure funding system that is equitable, predictable, and sustainable, and does not undermine other County goals, such as housing, climate resilience and economic development.” 

On Nov. 12, 2024, the Council voted to enact Expedited Bill 16-24, Development Impact Tax – Amendments. The legislation, which was passed in conjunction with the Growth and Infrastructure Policy, amended the law governing transportation and school development impact taxes while doing no harm on school impact funding.  

During the worksessions on Bill 16-24, the committee recognized that flaws in the current impact tax system require further study and new, creative solutions. The GO Committee recommended the formation of a workgroup to study the County’s infrastructure needs and provide recommendations for new funding mechanisms.   

“The Infrastructure Funding Workgroup is critical for meeting our County’s growing needs in schools, transportation and parks,” said Councilmember Katz. “Through a multi-stakeholder approach, we are committed to creating equitable and sustainable funding strategies that move forward our priorities in housing, climate preparedness and economic development, delivering practical and innovative approaches to address these challenges effectively.”

“As we consider ways to fund public infrastructure, it’s critical that we balance the impacts on housing costs and private sector investment needed to grow a thriving economy,” said Councilmember Friedson. “I appreciate the collaboration of committee colleagues supporting my recommendation to add the perspectives of impacted stakeholders including nonprofit housing providers and to ensure the work group’s efforts balance our County policy priorities.” 

The approved resolution defines the goals and objectives of the workgroup, composition and deadlines. 

The workgroup will determine and assess the County’s schools, transportation and parks infrastructure needs to a level that meets capacity needs and County policy standards.  

Additionally, the workgroup will research a variety of funding mechanisms to fund future capacity needs. The objective is to develop funding mechanisms that are equitable, predictable and sustainable without undermining County priorities such as housing, climate resiliency and economic development.  

The workgroup will include Council staff and representatives from the Montgomery County Planning Department, Parks Department, Department of Finance, Office of Management and Budget, Montgomery County Public Schools, and for-profit and nonprofit developers. 

The workgroup must submit a final report to the Council by June 30, 2026. View the full staff report and resolution.