For Immediate Release: Friday, April 19, 2024
The Government Operations and Fiscal Policy (GO) Committee will meet on Monday, April 22 at 9:30 a.m. to review Fiscal Year (FY) 2025 Operating Budgets for the Office of Racial Equity and Social Justice (ORESJ), Office of Management and Budget (OMB), Office of Intergovernmental Relations and the Office of the Inspector General (IG). In addition, the committee will review property tax options and the Income Tax Offset Credit.
The members of the GO Committee include Chair and Council Vice President Kate Stewart, Council President Andrew Friedson and Councilmember Sidney Katz.
The Education and Culture (EC) Committee will meet at 1:30 p.m. to review the FY25 Operating Budget for Montgomery County Public Schools (MCPS).
The members of the EC Committee include Chair Will Jawando and Councilmembers Gabe Albornoz and Kristin Mink.
The Transportation and Environment (TE) Committee will meet at 1:30 p.m. to review the FY25 Operating Budget and the FY25-30 Capital Improvements Program (CIP) for WSSC Water.
The members of the TE Committee include Chair Evan Glass, Councilmember Marilyn Balcombe and Vice President Stewart.
The Government Operations and Fiscal Policy (GO) Committee will meet on Monday, April 22 at 9:30 a.m. to review Fiscal Year (FY) 2025 Operating Budgets for the Office of Racial Equity and Social Justice (ORESJ), Office of Management and Budget (OMB), Office of Intergovernmental Relations and the Office of the Inspector General (IG). In addition, the committee will review property tax options and the Income Tax Offset Credit.
The members of the GO Committee include Chair and Council Vice President Kate Stewart, Council President Andrew Friedson and Councilmember Sidney Katz.
The Education and Culture (EC) Committee will meet at 1:30 p.m. to review the FY25 Operating Budget for Montgomery County Public Schools (MCPS).
The members of the EC Committee include Chair Will Jawando and Councilmembers Gabe Albornoz and Kristin Mink.
The Transportation and Environment (TE) Committee will meet at 1:30 p.m. to review the FY25 Operating Budget and the FY25-30 Capital Improvements Program (CIP) for WSSC Water.
The members of the TE Committee include Chair Evan Glass, Councilmember Marilyn Balcombe and Vice President Stewart.
Office of Racial Equity and Social Justice
Review: The GO Committee will review the County Executive’s more than $1.7 million FY25 Operating Budget for ORESJ, which is an increase of $374,623, or 26.7 percent, from the approved FY24 Operating Budget. The increase in the recommended budget includes $91,569 for data management and the implementation of a Racial Equity dashboard. The Office of Racial Equity and Social Justice works with all County departments to ensure race is not a predictor of outcomes for Montgomery County residents. The office assists departments to examine their own policies, procedures and practices as well as to develop community engagement plans to determine if they are creating or exacerbating current racial disparities in the County. In addition, the office assists departments in developing more equitable practices and policies by examining and developing data and creating racial equity assessments and racial equity action plans.
Office of Management and Budget
Review: The GO Committee will review the County Executive’s more than $7.6 million recommended FY25 Operating Budget for OMB, which is an increase of $450,261 or 6.2 percent from the approved FY24 Operating Budget. The increase is a result of the annualization of FY24 compensation increases, FY25 compensation adjustments and an increase to the Information Technology (IT) support contract rate. OMB supports the operation of County government by ensuring funds are spent in the most fiscally prudent way and that performance objectives are achieved. OMB also ensures that County expenditures are made in accordance with Executive policies and Council appropriations.
Office Intergovernmental Relations
Review: The GO Committee will review the more than $1 million FY25 Operating Budget for the Office of Intergovernmental Relations recommended by the County Executive, which is an increase of $54,074 or 5.6 percent from the approved FY24 Operating Budget. The Office of Intergovernmental Relations represents County interests at the regional, state and federal levels. In addition, the office prepares the annual State Legislative Program and the annual federal priorities request. The Office of Intergovernmental Relations is also the lead agency representing the County in the Maryland Association of Counties and the National Association of Counties.
Office of the Inspector General
Review: The GO Committee will review the more than $3.6 million FY25 Operating Budget for OIG recommended by the County Executive, which is an increase of $694,879, or 23 percent, from the approved FY24 Operating Budget. The recommended increase includes $237,634 for the addition of two full-time-equivalents (FTEs) to support investigations within the Educational Oversight Division for Montgomery County Public Schools (MCPS). The mission of the OIG is to prevent and detect fraud, waste and abuse in government activities and propose ways to increase the legal, fiscal and ethical accountability of Montgomery County government and County-funded agencies.
Property tax options: amount, rate, and income tax offset credit
Review: The GO Committee will review and is expected to take votes on the amount of the Income Tax Offset Credit (ITOC) value for FY25 and the weighted average real property tax rate for FY25. For FY25, the County Executive recommends retaining the current ITOC at $692 and retaining the current weighted average property tax rate of $1.0255 per $100 of assessed value. The weighted average rate includes the $0.0470 per $100 of assessed value approved for MCPS in FY24.
The ITOC provides a tax credit to owner-occupied properties in the County. The value of the credit must be adopted by the Council each year and is based on the total County income tax revenues collected that exceed 2.6 percent and the number of eligible properties in the County.
The Executive recommended FY25 weighted tax rate of $1.0255 per $100 of assessed value is the same rate approved by the Council in FY24. This rate includes $0.9875 per $100 of assessed value that can be used to fund programs and services across all County agencies, and $0.0470 per $100 as assessed value that is dedicated to MCPS based on the mechanism used to increase the tax rate in FY24.
Montgomery County Public Schools (MCPS)
Review: The EC Committee will hold its second meeting to review of the Board of Education’s more than $3.3 billion requested FY25 Operating Budget for MCPS, which is an increase of more than $187 million, or 5.9 percent, over the approved FY24 Operating Budget. The tax-supported budget, which excludes grants and enterprise funds, is more than $3.1 billion. This represents an increase of more than $178 million, or 6 percent, over the FY24 approved tax-supported budget.
The Board’s request increases the local contribution from the County by more than $162 million, or 8.2 percent, over the approved FY24 local contribution. The Board’s request is more than $188 million over the required Maintenance of Effort (MOE) level. The MOE requirement for FY25 decreased nearly $26 million from the FY24 approved funding level, which is due to recent years of slight declines in enrollment across grades K-12.
The Board projects FY25 enrollment to be 155,659 in grades K-12, which is 239 students less than the current school year’s enrollment of 155,420. The Board’s request adds a total of $53 million for strategic priority enhancements, new initiatives and elements to enhance or improve key priorities. In addition, the Board’s budget adds a net total increase of 268.7 full-time employees (FTE) above the approved FY24 budget level, for a requested FY25 total of 24,764.5 FTE.
The County Executive recommends an MCPS FY25 Operating Budget of more than $3.2 billion, which is an increase of more than $127 million, or 4 percent, over the approved FY24 funding level. The County Executive’s recommendation is more $60 million less than the Board’s requested total budget. The Executive’s recommended County contribution is more than $2.1 billion, which is more than $106 million, or 5.4 percent, above the approved FY24 local contribution. This recommended funding level is more than $55 million less than the Board of Education requested for the County contribution.
At this meeting, the committee will review accelerators, federal Elementary and Secondary School Emergency Relief (ESSER) funding, dual enrollment, international enrollment and the Technology Modernization Capital Improvement Program (CIP). At a meeting held on April 10, the committee received an overview of the budget, including a fiscal summary of revenues and expenditures and review the MOE level, fund balances and Racial Equity and Social Justice (RESJ) statements. The committee is expected to hold additional meetings on April 29 and May 1 to continue to review the MCPS operating budget.
WSSC Water FY25 Operating Budget
Review: The TE Committee will review the proposed $1.02 Billion FY25 Operating Budget for WSSC Water, which represents an increase of $88.6 million, or 9.5 percent, from the approved FY24 Operating Budget. The largest increases are a result of debt service, regional sewage disposal, and salaries and wages. The equivalent percent rate increase across volumetric fees and fixed fees is 8.5 percent, which is the same as the approved spending control limits rate ceiling. The account maintenance fee and the infrastructure investment fee are both increased by 65 percent based on the results of a cost-of-service study. The volumetric rate increase is 2.4 percent and there is no change to system development charge rates for FY25.
WSSC Water provides public water and sewer services to approximately two million residents in Montgomery County and Prince George's County. It maintains three reservoirs and two water treatment plants that provide about 162 million gallons per day of drinking water and maintains seven wastewater treatment plants.
WSSC Water FY25-30 Capital Improvements Program (CIP) Mid-Cycle Update
Review: The TE Committee will review WSSC Water’s mid-cycle update to the proposed FY25-30 CIP. The update includes revisions to the Blue Plains projects as well as changes in the Sewer Reconstruction Program. Based on the latest projections overall spending in the six-year period is expected to increase by nearly $2.3 million, while FY25 costs are expected to decrease by $10.1 million.
The Committee meeting schedule may change from time to time. View the current Council and Committee agendas, Council staff reports and additional information on items scheduled for Council review on the Council website.
Council and committee meetings are streamed live on the Council’s web page via YouTube and on Facebook Live and can be watched on County Cable Montgomery on Xfinity/RCN 6 HD 996/1056, Fios 30, and on the CCM live stream.
Release ID: 24-155