For Immediate Release: Thursday, May 11, 2023
The Montgomery County Council will meet on Friday, May 12 at 9:30 a.m. to review FY24 Operating Budgets and FY23-28 Capital Improvements Program (CIP) projects.
The Council will review the following budget items:
Montgomery College and CIP Additional Technical Adjustment
Review: The Council will review the FY24 Recommended Operating Budget for Montgomery College, which is more than $280 million. This is an increase of more than $5.7 million from the FY23 Approved Budget. The Education and Culture (EC) Committee recommends approval of the College’s FY24 Operating Budget request, including the Current Fund, Major Facilities Reserve Fund and other non-tax-supported funds. Montgomery College has requested Maintenance of Effort, which is the minimum funding level required from the County and will make effective use of other resources including existing accumulated fund balance to support key priorities. The committee also reviewed COVID-19 relief funding, racial equity information, enrollment and staffing trends, tuition revenue, and employee compensation and benefits.
Additionally, a capital budget adjustment is proposed because the state didn’t approve $418,000 in funding requested for the Takoma Park/Silver Spring Library renovations in the Collegewide Library Renovations Project. Council staff recommends transferring this funding from the Planning, Design and Construction Project to the Collegewide Library Renovations Project, as proposed by Montgomery College.
Review: The Council will review budget savings associated with vacancy rates across Montgomery County government. Council staff recommends that the Council consider increasing fiscal year 2024 lapse assumptions by approximately $8 million. In total, this would increase the lapse assumed as part of the FY24 budget to $58.95 million or around 54 percent of the FY24 personnel costs associated with the vacant positions as of March 3. A chart detailing these amounts is on page two of the Council staff report. In addition to the current vacancies, there are expected to be approximately 900 new vacancies that will occur through the fiscal year.
On April 18, Council President Evan Glass sent a memorandum to County Executive Elrich asking him to provide the Council with a list of vacancies that could be unfunded, with the least amount of service impacts, to ensure that taxpayer resources are being used efficiently. Council President Glass’ letter and County Executive Elrich’s response can be viewed on circle pages one through seven of the Council staff report.
Montgomery County Public Schools
Review: The Council will review the proposed operating budget for Montgomery County Public Schools (MCPS). The Recommended FY24 Operating Budget for MCPS is more than $3.2 billion which is an increase of $288.5 million or 9.9 percent above the approved FY23 funding level. The Executive recommended 99.8 percent of the Board of Education’s request or $7.5 million less than the Board’s requested budget.
The recommended budget proposes a 10 percent property tax increase to generate an additional $223.3 million in FY24, and if enacted, this would be the County’s first property tax increase since FY17, with each one cent increase equivalent to $22.3 million in revenue. The Executive’s recommendation allocates the full amount of this proposed tax increase to support the requested increase in local funding for MCPS. A provision in state law allows local counties to exceed Charter limits on taxes for the purpose of funding the local school system.
The EC Committee recommends reducing the County contribution by $22.3 million associated with MCPS’ accumulated fund balance. The committee also placed $201,017,575 on the Council’s reconciliation list, which is approximately nine increments of $22.3 million each. The funding was placed in two tranches: $156,417,575 that is identified as high priority funding and $44.6 million that is identified as priority.
Additionally, the EC Committee recognized the addition of federal funds for Title I ($18.5 million) and Individuals with Disabilities Education Act (IDEA) funding ($4.9 million). The additional federal allocations do not impact the tax-supported funding levels but will increase the total MCPS FY24 appropriation and provide important services to students. The committee also recommended approval of the Board of Education’s requested FY24 appropriation for the Technology Modernization Capital Improvements Program project.
The staff report includes more information about the EC Committee’s recommendations which will be reviewed by the full Council.
At 1:30 p.m., the Council will review the following FY24 Operating Budgets, FY23-28 CIP amendments and committee recommendations for the following departments and projects.
Rental Assistance Program DHCA
Review: The Council will review the recommended FY24 Operating Budget for the Department of Housing and Community Affairs’ (DHCA) rental assistance programs funded through the Housing Initiative Fund (HIF), which is more than $16.2 million. This is a decrease of more than $3.2 million or a more than 16 percent decrease from the FY23 Approved Budget. The Housing Opportunities Commission (HOC) receives an annual allocation of rental assistance funding from recordation tax revenue and the change in the recommended FY24 Operating Budget is due to a decrease in recordation tax premium estimates.
The joint Health and Human Services (HHS) and Planning, Housing and Parks (PHP) Committee reviewed, and voted unanimously to approve, the recommended FY24 Operating Budget for DHCA’s rental assistance programs funded through the HIF, which is more than $16.2 million.
The committee was not able to discuss the programming of an estimated $7.6 million of additional recordation taxes generated by Bill 17-23, approved by the Council on May 9, 2023. The total combined resources available in HIF-funded rental assistance programs for FY24 increased from $16,273,590 to $23,879,590. The staff report includes details and recommendations on programming this additional funding.
Department of Housing and Community Affairs
Review: The Council will review the FY24 Recommended Operating Budget for the DHCA, which is more than $69.3 million, an increase of $950,380 or 1.4 percent from the FY23 Approved Budget of more than $68.4 million. DHCA works to preserve and increase the supply of affordable housing, maintain existing housing in a safe and sanitary condition, preserve the safety and quality of residential and commercial areas, ensure fair and equitable relations between landlords and tenants and support the success of common ownership communities. Details of the committee’s recommendation for the General Fund, the grant fund and the HIF can be found in the Council staff report.
Housing Opportunities Commission
Review: The Council will review the FY24 Recommended Operating Budget for the HOC NDA, which is more than $7.9 million. This is an increase of $339,333 or a 4.4 percent increase from the FY23 Approved Budget. Because HOC is an external organization, the County’s contribution to the NDA goes into HOC’s Public Fund and makes up only a portion of its total revenue. HOC’s full FY24 Recommended Operating Budget is more than $331.8 million and a majority of HOC’s revenue comes from grants, other funding sources and HOC properties.
HOC was established in 1974 to better respond to the County’s need for affordable housing. HOC is authorized to acquire, own, lease and operate housing; provide for the construction or renovation of housing; obtain financial assistance from any public or private source to assist its housing activities; and arrange for social services, resident services and day care.
The PHP Committee recommends approval of the proposed budget, with incremental FY24 compensation increase placed on the reconciliation list as a high priority.
Review: The Council will review the FY24 Recommended Operating Budget for the Board of Elections, which is $12.2 million. This is an increase of more than $1.6 million or a more than 15 percent increase from the FY23 Approved Budget. The Board of Elections registers voters, conducts elections, assists persons seeking elective office with candidate filings and campaign fund reports, assists residents seeking to place questions on the ballot and preserves election data.
The staff report includes multiple recommendations for Council consideration from the Government Operations and Fiscal Policy (GO) Committee.
Office of the County Executive
Review: The Council will review the recommended FY24 Operating Budget for the Office of the County Executive, which is more than $7.5 million. This is a decrease of $140,596 or a 1.8 percent decrease from the FY23 Approved Operating Budget. The Office of the County Executive provides leadership to the community and administrative direction to the County's departments and offices. The office provides support to the County Executive and the Chief Administrative Officer as they carry out their responsibilities to residents and employees of Montgomery County.
The staff report includes multiple recommendations for Council consideration from the Economic Development (ECON) Committee.
Review: The Council will review the recommended FY24 Operating Budget for the Office of Grants Management, which is $609,378. This is an increase of $268,069 or a more than 78 percent increase from the FY23 Approved Operating Budget. The office serves as a central point of contact regarding grants and awards received by the County. In addition, the office provides technical assistance regarding grants management to Executive Branch departments and principal offices. The office searches out and identifies federal and state grant opportunities to Executive Branch departments and principal offices.
The staff report includes recommendations for Council consideration from the GO Committee.
Review: The Council will review the recommended FY24 Operating Budget for the Community Grants NDA, which is more than $9.8 million. This is a decrease of more than $1.1 million from the FY23 Approved Budget. The Office of Grants Management will manage the application and awarding processes for the ten competitive grant programs within the NDA in FY24. In addition, 28 community grants programs previously funded through the Community Grants' budget will be shifted into departmental base budgets. At this meeting, the committee will discuss the Community Grants process FY24 timeline including bridge funding timing.
The staff report includes recommendations for Council consideration from the GO Committee.
Review: The Council will review $3 million in community grants included within the Cost Sharing: Montgomery County government project. These include arts facility capital grants and cost sharing capital grants for major projects more than $100,000 and small projects $100,000 or less.
The services offered by community partners help the County address poverty and social inequity, provide emergency services and health care, serve youth in the community and ensure that seniors and persons with disabilities receive quality services. These partnerships help residents who are most in need access the services they require to thrive in a cost-effective manner.
The staff report includes recommendations for Council consideration from the GO Committee.
Technology and Enterprise Business Solutions - County Website
Review: The Council will review of the recommended FY24 Operating Budget for the Department of Technology and Enterprise Business Solutions (TEBS), which is more than $54 million. This is an increase of more than $3 million or a more than 5.4 percent increase from the FY23 Approved Budget. The committee held its first meeting to discuss this item on April 26, 2023. This meeting will include a discussion on additional information regarding the TEBS staff complement and the vacancies and lapse assumptions in the recommended budget. TEBS provides technology solutions and services to facilitate the delivery of a wide range of services in all branches of Montgomery County government.
The GO Committee recommends approving the FY24 Recommended Operating Budget for TEBS, excluding a $1.5 million one-time new project cost for a county web site. The committee referred this item to the full Council to discussion as a high priority item.
Review: The Council will review the recommended FY24 Operating Budget for the Montgomery County Council, which is more than $17 million. This is an increase of more than $1.4 million or a 9.1 percent increase from the FY23 Approved Operating Budget. This budget reflects the full year costs of new staff added in FY23 to accommodate the addition of two new Councilmembers, who started mid-year in FY23. In addition, personnel cost increases reflect the annualization of FY23 compensation adjustments and proposed FY24 compensation increases. Operating costs are increased to reflect a shift in funding from the Cable Fund to the General Fund, as funding available from cable revenues continues to decrease. The budget also includes a $40,000 increase to the budgets of Councilmember offices to account for inflation. One-time FY23 costs of $400,000 associated with the transition between Councils are removed, resulting in a cost decrease.
The GO Committee recommends placing the $40,000 inflationary increase for Councilmember offices operating budgets on the reconciliation list categorized as a high priority. In addition, the committee recommends allowing two currently vacant positions to lapse a full year to provide a total reduction of $258,732.
Legislative Branch Communications NDA
Review: The Council will review the recommended FY24 Operating Budget for the Legislative Branch Communications Outreach NDA, which is more than $2.5 million. This is an increase of $362,605, or a 16.9 percent increase from the FY23 Approved Operating Budget. In 2012, at the committee’s initiative, the Council established this NDA to strengthen the capacity of the five Legislative Branch offices to inform constituent communities about issues that directly affect them and ensure that these communities’ concerns are considered. The fund is also used to support information technology needs.
In addition to the normal increases associated with compensation and the full-year costs of positions added in FY23, the FY24 recommended budget adds funding for a new position to serve as a liaison to the Asian American and Pacific Islander (AAPI) community ($82,703), increased funding for translation and interpretation services ($30,000) and funding for culturally competent community outreach through boosting posts and public service announcements ($10,000). The GO Committee placed these items on the reconciliation list as high priorities.
Additional information about the committee’s recommendation can be found in the Council staff report.
Review: The Council will review the recommended FY24 Operating Budget for Alcohol and Beverage Services, which is more than $70.8 million. This is a more than $2.5 million increase, or a 3.7 percent increase from the FY23 Approved Budget. Alcohol Beverage Services provides licensing, wholesale and retail sales of beverage alcohol products, enforcement and education and training programs. The department generates revenue for the Montgomery County's General Fund. In FY24, Alcohol Beverage Services will transfer $34 million to the General Fund and make $9 million in debt service payments on Liquor Control Revenue Bonds for a total contribution of $42 million.
The ECON Committee did not specifically recommend or endorse the County Executive’s recommended FY24 operating budget for Alcohol and Beverage Services. The Council can make recommendations on this budget item, but final decisions are subject to the authority of the County Executive.
Review: The Council will review the FY24 Recommended Operating Budget for the WorkSource Montgomery NDA, which is more than $2.2 million. This is an increase of $63,279 or a more than 2.9 percent increase from the FY23 Approved Budget. WorkSource Montgomery is the County’s designated workforce development corporation. The organization implements the County’s workforce development policies to promote job growth and talent attraction.
The ECON Committee recommends placing the recommended $63,279 increase on the reconciliation list categorized as a high priority. In addition, the committee recommends a reduction of $158,000 to reflect unspent carryover appropriation from FY23 funding for the Coding Our Way Home program.
The Council meeting schedule may change from time to time. The current Council and Committee agendas, Council staff reports and additional information on items scheduled for Council review can be viewed at: http://www.montgomerycountymd.gov/COUNCIL/ondemand/index.html.
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: 23-175