For Immediate Release: Thursday, May 21, 2015
Montgomery County Council President George Leventhal made the following remarks on the Council’s approval of the Fiscal Year 2016 County operating budget:
As we prepare to give final approval to resolutions on the FY 2016 operating budget and the Capital Improvements Program, I want once again to thank all my colleagues and the Council staff for your hard and productive work. I also want once again to thank the County Executive and his staff; the governing boards and staff of MCPS, Montgomery College, M-NCPPC and WSSC; and the thousands of County residents who shared their views with us.
Because of slow revenue growth, this was a difficult year, but we should take pride in our work. The County Executive sent us a good budget, and we have strengthened it in ways that are important to our community.
We know from our fiscal plan that next year’s budget will present a serious challenge. On Monday of this week, this challenge grew larger with the Supreme Court’s 5-4 decision in the Wynne case. While the impact on the County’s income tax revenue in FY 2016 will be relatively small, an estimated $8-10 million, it will grow to $50 million or more in Fiscal Years 2017 and 2018.
This means that we must continue to exercise caution going forward. It frames the conversation we will have on topics such as contract negotiations with our employee organizations, our ability to fund the school system above the Maintenance of Effort level and our ability to further reduce the energy tax. It also highlights the crucial importance of an economic development strategy that will expand the County’s tax base and deliver the revenues we need.
We will continue to work closely with the County Executive to ensure that the County’s financial position remains strong and essential services are provided. If we jointly determine that a mid-year savings plan is required, we will implement it, just as we have done when needed in past years.
We will also be backed by the very large reserve we have set aside in our budget for contingencies of this kind--$393 million. This is 8.4 percent of our adjusted governmental revenues, $22 million more than the target for FY 2016 that we set in 2011.
Thanks again to my colleagues for your outstanding work. Let us now vote on the resolutions.
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Release ID: 15-168
Media Contact: Neil Greenberger 240-777-7939, Delphine Harriston 240-777-7931