- County Budget-2022-2023
- County Revenue
- State Budget Outlook – 2022 and beyond
- State Legislative Plans and Actions – 2022
- 2020 State and County Ballot Questions
County Revenue and Budget
- May 26, 2022: The Montgomery County Council unanimously approved a $6.3 billion operating budget for fiscal 2023, which begins July 1, and a $5.3 billion capital budget for fiscal 2023 to 2028. The operating budget represents roughly a $300 million increase over spending for fiscal 2022, which ends June 30. It also keeps the average property tax rate at 97.85 cents per $100 of assessed value. The income tax offset credit will also stay at $692 for each eligible resident, the same as last year. More detailed information can be found in these sources:
- Montgomery County Council Press release
- OMB website
- Councilmember Friedson’s written budget statement
- Councilmember Friedson’s remarks at the end of the budget session
- Remarks by other Councilmembers
- Bethesda Beat summary article
Issue: How can the county increase revenues over the longer term so it can meet its budget requirements while balancing concerns for the environment, transportation, and schools. This is likely to be a major issue in the 2022 election for County Executive.
Background: For several years, the county has been experiencing low economic growth because of the lack of job creation and a low rate of establishment of new businesses in the private sector in comparison to nearby counties and other jurisdictions.
Two 2020 council initiatives aimed at improving the county’s long term economic condition were passed recently over the County Executive’s veto.
- Council Bill 29-20 as passed offers 15-year property tax breaks on Metro development projects in the hope that this will spur high rise development activity near Metro stations.
- The Council modified and then accepted the County Planning Board’s updated Subdivision Staging Policy, now referred to as Growth and Infrastructure Policy. See this website for details. This policy requires the government to evaluate public infrastructure capacities, such as schools and roads, to determine whether they are sufficient to support a proposed development project before approving that project. According to some, the changes to the policy reflect more of an emphasis on growth rather than on balancing the infrastructure to support new development.
State Revenue and Budget
Issue: What is the state budget for FY2023 and what is the outlook for the state budget in the next few years?
Delegate Marc Korman, District 16, a member of House of Delegates Appropriations Committee, reports the following regarding the state’s FY2023 budget and projected revenues:
- Budget FY2023
- $2.4 billion added to the Rainy Day Fund to protect state finances in case of future fiscal uncertainty.
- $350 million in tax relief, including a tax credit for retirees and a sales tax exemption for some essential goods.
- Almost $8 billion for public school support and full funding of the Blueprint for Maryland’s Future, including approximately $900 million for the operations of Montgomery County Public Schools.
- Grants to the arts and tourism community still reeling from COVID-19.
- Support for colleges and universities to cap in-state student tuition increases at 2%.
- Funding for expanding Medicaid to cover dental benefits.
- Expanding Temporary Cash Assistance to those in need.
- Expanding funding for summer meals for needy students.
- Support to cut down the Autism Waiver waiting list.
- In District 16 and across Montgomery County, the capital–or construction–budget as passed includes:
- $12 million for the Bethesda Metro South Entrance being constructed in conjunction with the Purple Line.
- $3 million for new park space around the Montgomery Farm Women’s Cooperative Market in Downtown Bethesda.
- $500,000 for Round House Theatre renovations.
- $130,000 for Glen Echo Park’s parking lot rehabilitation project.
- $600,000 for Little Falls Stream Valley Park maintenance.
- $1.25 million for the Housing Opportunities Commission and Montgomery County project at The Metropolitan to stop chronic flooding.
- $500,000 for the Glen Echo Fire Department.
- $63.4 million for Montgomery County Bus Rapid Transit.
- $8.8 million for Montgomery County to acquire zero-emission buses.
- $10 million for White Flint infrastructure improvements.
- Tens of millions of dollars for Montgomery County school construction, including funds through a special program for school districts with high enrollment.
- Revenue 2022 and beyond : The March Update of the Maryland Board of Revenue Estimates reported that income and sales tax revenue have come in at higher levels than expected, leading to an upward revision. These revisions are actually conservative, as personal income tax growth–for example–has been up 11.3% so far and would have to plummet to less than 1.9% to hit the estimate. Employment is still below pre-pandemic levels by 100,000 jobs and, despite these strong aggregate figures, many are suffering. Inflation and the geopolitical situation also create risk–to revenue and to health and safety and security. You can read the full deck here: https://t.co/5fOaUw1MUZ The official write-up is here: https://t.co/mIZh67BZGs And the full meeting can be watched here: https://www.youtube.com/watch?v=Gi3xLvliTW0
State Legislative Plans and Actions – 2022
The legislature’s Department of Legislative Services has issued its summary report of the 2022 session. The report contains detailed information on all legislative actions, including the budget as well as other policy matters.
Archived but Important
2020 Ballot Questions
Both the State and the County had important constitutional and charter questions on the 2020 ballot.
State Ballot Questions
Background: In November 2020 Maryland voters approved two state ballot questions: 1] A constitutional amendment that authorizes the General Assembly, beginning in FY2024, to increase, diminish, or add items to the budget as long as it does not exceed the proposed budget submitted by the governor; and 2] A referendum to approve the expansion of commercial gaming in the State of Maryland to authorize sports and events betting for the primary purpose of raising revenue for education.
More Information: See the PRA Fall 2020 newsletter.
County Ballot Questions
Background: In November 2020 Montgomery County voters approved two county ballot questions: 1] To remove a cap that limits how much the county’s property tax revenue can increase in a single year. Requires all nine council members to approve an increase in the tax rate; and 2] To expand the council from nine seats to 11 seats. Seven members would be elected by district. The other four seats would remain at large.
More Information: See the PRA Fall 2020 newsletter.