For Immediate Release: Thursday, May 14, 2020
The Council’s focus was to produce a continuity of services budget; Property tax stays within County Charter Limit with $692 property tax credit for homeowners
ROCKVILLE, Md., May 14, 2020—Today the Montgomery County Council reached preliminary agreement on the County’s $5.9 billion Fiscal Year (FY) 2021 Operating Budget and on a $4.4 billion FY21-26 Capital Improvements Program (CIP) to fund school construction, infrastructure improvements and community projects. The Council’s focus throughout its budget work was on providing a continuity of services for County government and residents. The final Council votes on the capital and operating budgets are scheduled for May 21.
The budget agreement meets the FY21 target for the County’s reserve—10 percent of adjusted governmental revenues and provides $92.2 million in additional resources for Other Post-Employment Benefits (OPEB). Funding for these fiscal obligation helps the County retain its triple-A bond rating.
“The Council's approach to this budget was unlike any other,” said Council President Sidney Katz. “We had a singular goal—continuity of service. Like households across our community, we had to limit our spending and control budget growth. The $5.9 billion operating budget and the $4.4 billion capital budget that we reached preliminary agreement on provides stability for our residents and our workforce, while we await a clearer picture of expenses and revenues that will emerge during the summer and fall. We all recognize that there will be more work to do to meet the ongoing public health and financial needs caused by the Covid-19 pandemic.”
Council President Sidney Katz, Vice President Tom Hucker and Councilmembers Gabe Albornoz, Andrew Friedson, Evan Glass, Will Jawando, Nancy Navarro, Craig Rice and Hans Riemer unanimously supported the preliminary agreement on the operating budget and capital budgets. Council President Sidney Katz’s budget statements can be read here and a video clip of his remarks can be found here.
The budgets will go into effect on July 1. The Council’s final budget resolutions will be posted here on May 21.
The County’s $4.4 billion six-year capital improvements program provides funding to address the County’s most urgent building needs. Some items of note in the CIP include keeping the reopening of Woodward High School and the Northwood High School Addition/Facility Upgrade on schedule and adding major capital project improvements for Burnt Mills Elementary School, Neelsville Middle School, Magruder High School and Poolesville High School on schedules proposed by the Board of Education. Major capital projects at Woodlin, South Lake and Stonegate Elementary Schools and Damascus and Wootton High Schools were also added with completion dates in the six-year period. The CIP also funds the following important projects for Montgomery College: a feasibility study to expand the college into the eastern part of the County; continued construction of the new math and science building on the Takoma Park/Silver Spring Campus; and information technology systems and infrastructure improvements. Moreover, the CIP includes planning and design for a new Clarksburg Library and additional improvements for pedestrian and bicycle safety throughout the County. The Council also included $54.9 million for the construction of the Capital Crescent Trail Tunnel in Downtown Bethesda.
The Montgomery County Council voted unanimously to maintain the County’s property tax rates at the Charter Limit and continues to provide a property tax credit of $692 for homeowners. The Council also rejected the County Executive’s proposal that would have increased property tax rates by 0.24 cents per $100 to provide certainty in budgeting for County residents and to maintain consistency with fiscal policies that the County has maintained for 30 years.
Below are some of the key Council budget recommendations by funding categories.
Montgomery County Public Schools
More than half of the County’s budget, $2.76 billion, will fund Montgomery County Public Schools (MCPS). As the Council’s focus was on providing a continuity of services budget, this amount will fund MCPS at the Maintenance of Effort level, which is mandated by the State of Maryland. This represents an increase of $74.9 million or a 2.8 percent increase from the FY20 approved budget. This includes a local contribution of more than $1.75 billion.
The County continues to rank near the top of all Maryland jurisdictions for total per pupil funding. With ever increasing student enrollment, the Montgomery County Board of Education estimates that 167,041 students will attend MCPS in FY21, which is an increase of 1,774 students from FY20. MCPS Board of Education President Shebra Evans and MCPS Superintendent Jack Smith have acknowledged the tremendous fiscal uncertainty resulting from the COVID-19 global health pandemic and are committed to using funding to maintain the operational and instructional infrastructure of the school system and maintaining the focus on excellence and equity throughout these unprecedented times.
Montgomery College
The Council funded a continuity of services budget of $318.3 million for Montgomery College, which is an increase of $3.5 million or one percent from last year’s budget. This includes a local contribution of more than $145.8 million. County funding for the College is at the required Maintenance of Effort level. The College budget includes no increase in tuition rates or fees paid by students for FY21. The College’s budget maximizes existing resources to protect affordable tuition and offer additional scholarships. Prior to the health crisis, the College projected a Fall 2020 enrollment for credit bearing courses of 21,007, a decrease of 253 students or 1 percent. Enrollment in non-credit bearing courses was projected at 47,448, an increase of 820 of 1.8 percent. The potential impact of financial difficulties for students, continued closure of College facilities, and access to remote learning all could have a significant impact on enrollment.
Public Safety
The Council funded a budget of $281.95 million for the Department of Police. This is a 4.5 percent decrease from last year’s budget. The County Executive's FY21 Recommended Budget reflects the separation of the Animal Services Division from the Police Department. The shift in costs from the Police budget to the new Office of Animal Services is approximately $7.9 million. The Police budget includes $495,072 for mobile video systems upgrades in the last 100 patrol vehicles that do not yet have mobile video installed. Also, a social worker position was added to the Emergency Communications Center to provide stress management resources. The department also will receive seven new crossing guards for new schools. In the Sheriff’s Office, the total budget will be $25.6 million, which is an increase of $223,930 from last year’s budget. To maintain a continuity of services budget, the funding allows for the replacement of mobile video units and ballistics vest and adds additional body-worn cameras. Further funding may be needed for emergency Covid-19 response.
The operating budget for the Department of Corrections and Rehabilitation will be $71.1 million. This is an increase of $506,667. The budget includes funding for cell vent, bunk and door enhancements, which is the result of the National Institute of Corrections’ (NIC) findings on how to reduce the risk of inmate self-harm or suicide.
The operating budget for the Fire and Rescue Service will be $225.4 million. This is an increase of $2.1 million or one percent from last year’s budget. The budget includes a Communications Contingency Plan, which reflects the cost of adding cell phones to fire apparatus to provide an additional mode of communication in the event of public safety radio system disruptions. The new Radio System Infrastructure Project is on schedule to be completed by late December 2020.
The Council also added $700,000 in the Emergency Management and Homeland Security budget for security grants for faith-based and racial/ethnic organizations.
Economic Development
The Council agreed to fund more than $5 million in FY21 to support the work of the Montgomery County Economic Development Corporation (MCEDC). This organization implements the County’s economic development strategic plan, which includes marketing, business attraction and retention, entrepreneurship and promoting the County’s economic base.
The Council also agreed to allocate $1.3 million in funding for WorkSource Montgomery, which implements the County’s workforce development policies to promote job growth and attract talent.
The Council allocated approximately $3 million for the County’s incubator programs. This includes funding for the Wheaton Small Business Technical Assistance Program.
In addition, the budget includes $1.6 million to fund Visit Montgomery, which promotes and markets the County as a destination and provides information to County visitors.
Transportation
The Council agreed to fund the Department of Transportation’s budget at more than $235.6 million. This includes funding for items like road maintenance, leaf collection, Ride On and the parking lot districts.
The continuity of services budget includes funding for the Kids Ride Free program and a new limited stop FLASH service that is scheduled to launch this summer between the Burtonsville Park-and-Ride Lot and the Silver Spring Transit Center. The line will include 18 new station platforms with a fleet of sixteen, 60-foot articulated buses.
Children, Youth and Families
Continuing the Council's commitment to helping children, families and individuals thrive, the budget includes level funding of $5.99 million to support the Montgomery County Early Care and Education Initiative, which was initiated by Councilmember Nancy Navarro and is supported by the County Executive and Council to expand quality early care and education opportunities for infants, toddlers and preschoolers. Councilmembers noted how important the availability of child care is to the County's economic recovery and expressed their intent review the impact of Covid-19 restrictions on the child care industry and provide additional funding that ensures that families can access quality early care and education services when they go back to work.
Health and Human Services
The Council has agreed to fund $339 million for the Department of Health and Human Services. In the middle of the Covid-19 global pandemic, a continuity of services budget for the Department of Health and Human Services ensures that the service needs of the community continues to be met. The Council added $887,761 in funding to ensure adequate staffing of 10 additional school health nurses in FY21. Funding is also included for a school health technician for the new Emory Grove Early Childhood Center. When schools are not in session, school health nurses and health technicians work in other programs and departments to address public health needs, including those from the Covid-19 global pandemic. In June, the Council intends to revisit funding for payments to eligible providers of services to the developmentally disabled and providers of adult medical day care. Also included in the budget is a $100,000 County match for the Summer Supplemental Nutrition Assistance Program (SNAP). This funding is the required match for a State grant. The Summer Snap for Children program provides an additional $30 per child for each summer month and an additional $10 per children during winter break.
Community Grants and Working Families Income Supplement
The Council approved the Community Grants NDA and Capital Grants as part of the capital budget within Cost Sharing: MCG Project and deferred the review of new community grants organizations and programs to reassess service needs in light of Covid-19. The Council approved the recommendation to move 67 community grants funded as part of the FY20 budget (totaling $3.8 million) into the base budgets of departments and increased the County Executive’s recommendation of $9,795,238 for community grants to organizations that improve the quality of life for County residents by $614,736 to total $10,409,974. The Council approved $1,583,362 to fund nonprofit organizations for capital projects and deferred the review of the arts and humanities capital grants to the Education and Culture Committee. The full list of FY21 grants to nonprofit organizations that provide health and human services can be viewed on pages 23-42 of the Council staff report here. A summary of the community grants contracts that were shifted to County department base budgets can be found here.
The County’s budget will fund $20.1 million for the Working Families Income Supplement NDA, which provides funds to supplement Maryland’s Earned Income Tax Credit (EITC) and is intended to benefit low-income working families in the County. The federal government authorizes the federal EITC for working people with low- to moderate-incomes. The County supplements the state’s refund by 100 percent for County residents, in effect doubling the amount received.
Affordable Housing
The Council is allocating more than $76 million in capital and operating funds to support the production and preservation of affordable housing through the Housing Initiative Fund and reserving $6.8 million to determine how the County can leverage additional funding sources and investments to accelerate the production and preservation of affordable housing. The Housing Initiative Fund includes the Building Neighborhoods to Call Home program, rental subsidy and assistance programs for low-income households and to move households from homelessness to permanent housing and provides assistance with home ownership. The Council is approving a cap of $19.07 million for Payment in Lieu of Taxes Agreements for affordable housing developers. In addition, Payment in Lieu of Taxes Agreements for Housing Opportunities Commission are valued at $9.8 million.
Recreation
The Council agreed to fund total expenditures of $46.3 million for the Recreation Department. This is an increase of more than $1.4 million from last year’s approved budget. The budget restores funding for transportation to senior centers on Fridays and adds service for the North Potomac Senior program. The budget also includes relocation expenses for the move to Wheaton and more than $280,000 for Wheaton senior programming.
Environment
The Council agreed to fund $120.4 million for the Recycling and Resource Management portion of the Department of Environmental Protection (DEP) budget. This is a $14.2 million or 13.4 percent increase from last year’s approved budget. This includes funding for DEP’s implementation of the Commercial Food Waste Program, at-home food composting bins and a pilot Single-Family Food Waste Program. Solid Waste Service charges were approved at levels slightly below those recommended by the County Executive. The Council also agreed to fund $3.4 million for DEP’s general fund. This includes funding for increased tree planting paid for with Tree Canopy Fund revenue.
The continuity of services budget approved by the Council totals expenditures of $29.2 million for the Water Quality Protection Fund (WQPF). The WQPF covers County costs associated with water quality and the inspection, maintenance and rehabilitation of stormwater management facilities. The Council approved an FY21 Water Quality Protection Charge Equivalent Residential Unit rate of $107.60, which is $0.50 below the County Executive’s recommendation.
The Council also added $400,000 in funding for the Climate Change Planning non-departmental account (NDA). This NDA was started in FY20 and provides funding for the prioritization of greenhouse gas reduction strategies and the development of an implementation plan to meet the County’s goal of an 80 percent reduction in greenhouse gas emissions by 2027 and a 100 percent reduction by 2035.
Park and Planning
The Council agreed to fund $164.5 million for the Maryland-National Capital Park and Planning Commission (M-NCPPC), excluding debt service. This is more than a 3.9 percent increase from last year’s approved budget. Included in this amount is more than $108 million to enhance and maintain the County’s park system, which includes 422 parks and almost 37,000 acres of land. The Council also approved funding of $300,000 for athletic field renovations at school sites.
Libraries
The Council agreed to fund $42.1 million for the Department of Public Libraries. The Council indicated its willingness to revisit the expansion of public service hours in early FY21 at the Long Branch, Twinbrook and White Oak libraries as well as adding an early literacy outreach librarian for the Early Care and Education NDA. Montgomery County Public Libraries has a special emphasis on developing and supporting workforce and business development in the County. The County Executive realigned $305,283 for the Workforce and Business Development Program, and the Council fully supported this measure in order to continue this initiative.
Washington Suburban Sanitary Commission
The Montgomery and Prince George’s County Councils held their bi-county meeting and reached a budget agreement for the Washington Suburban Sanitary Commission (WSSC). The Council approved an FY21 operating budget of $849.7 million. The new budget includes reducing the proposed seven percent rate increase to six percent for WSSC water and sewer customers. All new bi-county spending plans are effective starting July 1, 2020.
Negotiated Agreements
Given the unprecedented economic impact of the pandemic, the Council did not fund salary and benefit increases for employees represented by the Fraternal Order of Police (FOP), the International Association of Fire Fighters (IAFF), the Municipal and County Government Employees' Organization (MCGEO) or non-represented County government employees. The Council also did not fund any increases over the FY20 amount in the Agreement with the Montgomery County Volunteer Fire and Rescue Association. Continuity of service was the Council's goal for the fiscal year 2021 operating budget. The Council made it clear that this decision was not about what County government employees deserve, but instead was about what the County can afford. The goals moving forward are to preserve the jobs of existing employees, prevent layoffs and continue to provide the services that are essential for residents. The Council also indicated its willingness to consider possible increases later in FY21 if the County’s revenue picture improves significantly.
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Release ID: 20-216