Montgomery County Council Votes to Approve Preliminary Agreement on $7.1 Billion Fiscal Year 2025 Operating Budget and FY25-30 Capital Improvements Program – MocoFeed

“Putting together a fiscally sound budget that meets the needs of Montgomery County’s 1.1 million residents is the ultimate balancing act,” said Council President Andrew Friedson. “Like residents across Montgomery County who create household budgets, the Council had to make difficult choices with finite resources, especially as we sought to increase funding for public education. With an unprecedented level of community engagement throughout this deliberative process, the Council has produced a budget that meets today’s needs and makes strategic investments for Montgomery County’s future so we can strengthen our social safety net and maintain our high quality of life.

“We are adding significant additional resources for Montgomery County Public Schools by funding 99.2 percent of the Board of Education’s request without raising taxes or increasing the County’s debt, while maintaining our reserve levels above 10.8 percent, and providing the necessary flexibility to respond to potential fiscal emergencies in the months ahead.

“Like all budgets before us, this year brought its own set of challenges and opportunities. Faced with tough choices, we worked strategically to increase our commitment to public schools, our hardworking employees and our nonprofit service providers.

“I appreciate each of my Council colleagues for the purposeful way we conducted our work, the County Executive and his staff for their budget recommendations, and the County residents who expressed their views.”

The preliminary budget agreement provides funding to increase ongoing investments in education, public safety, health and human services and affordable housing. Resources are also included to combat climate change and boost economic growth. These priorities are funded while providing more competitive salaries for Montgomery County employees and nonprofit providers and honoring the County’s long-term commitments to retired employees with $59.1 million provided for Other Post Employment Benefits. The Council continues to reinforce the County’s financial stewardship by funding the County’s reserves at 10.8 percent.

The Council also held the line on property taxes. The FY25 weighted tax rate remains static at $1.0255 per $100 of assessed value and includes $0.0470 per $100 that is dedicated to Montgomery County Public Schools (MCPS). Additionally, homeowners will continue to receive a $692 property tax credit that includes a degree of progressivity since lower-valued properties will receive a greater reduction in property taxes.

The capital and operating budgets go into effect on July 1.

FY25-30 Capital Improvements Program

The Council approved $5.94 billion in capital funding to address the County’s most urgent building needs including more than $1.85 billion for MCPS infrastructure. The Council made an unprecedented investment by adding $165 million in systemic projects to support critical infrastructure and extend the life of and improve conditions in schools. The Council’s approved CIP program for MCPS provides funding for 18 individual school projects and sets a schedule and sequence for school construction that can be maintained to avoid delays in the future.

The CIP provides $398.2 million for Montgomery College for capital projects including $60.5 million for the new East County Campus.

The capital budget also includes a significant increase for affordable housing programs, including $65 million in current revenue in FY25 for the Affordable Housing Acquisition and Preservation project and a $20 million increase in FY26-27 for the Affordable Housing Opportunity Fund. Additionally, there is a $50 million addition to the Nonprofit Preservation Fund, including $35 million in FY24 and $15 million in FY25. The capital budget also establishes a new project, Revitalization for Troubled and Distressed Common Ownership Communities, to provide $10 million of financial and technical support for homeowner and condominium associations.

Several capital projects across the County are also included in the capital budget. Some highlights include:

• Funding for the implementation of the comprehensive flood management plan in the amount of $153 million over six years.
• Funding for a new organics processing facility in the amount of $28 million.
• Funding for a hydrogen bus center in the amount of $10.95 million to plan, design and construct a hydrogen fuel cell bus and fueling site at the Equipment Maintenance and Transit Operations Center in Gaithersburg.
• Funding for WSSC Water capital expenditures for FY25-30 in the amount of $4.88 billion.
• Funding for modern renovations of Alcohol Beverage Services retail stores throughout the County.
• Funding restoration for the Summit Avenue Extended Project for the master-planned northern extension of Summit Avenue from Plyers Mill Road to Farragut Road. Summit Avenue is a two-lane, two-way business district street in the Town of Kensington.
• Funding to complete the retail space at Park and Planning Headquarters in Wheaton.
• Funding for design and construction of four new bridge projects: Auth Lane Pedestrian Bridge, Brookville Road Bridge, Redland Road Bridge, and Schaeffer Road Bridge.

FY25 Operating Budget

Education and Culture

The Council voted to approve funding to support MCPS, Montgomery College and essential educational and cultural services in Montgomery County. Funding $3.3 billion for MCPS comprises half of the County’s overall budget and is 99.2 percent of the Board of Education’s request. The local County contribution of $ 2.13 billion, funds the school system at approximately $158 million above the state mandated funding level.

Some highlights include:

• MCPS funding in the amount of $3.3 billion, which is an increase of more than $157 million, or five percent, over the approved FY24 Operating Budget and $29.6 million more than the County Executive’s Recommended Budget. The tax-supported budget, which excludes grants and enterprise funds, is more than $3.1 billion. This represents an increase of more than $151 million, or 5.1 percent, over the FY24 approved tax-supported budget. The budget adds a net total increase of 248.4 full-time employees (FTE) above the approved FY24 budget level, for a FY25 total of 24,764.5 FTE.
• Montgomery College funding in the amount of $334 million, which fully funds the College’s request. It is a decrease of $10 million, or three percent, from the previous year; however, this reflects a slight decrease in state aid and the one-time use of fund balances in FY24 that was used to support the build out of the leased facility for the East County Education Center.
• Montgomery County Public Libraries (MCPL) funding in the amount of $52 million.
• Over $1.9 million in funding for the KID Museum, which is the region’s largest center for maker learning for youth, families and educators.
• Arts and Humanities Council of Montgomery County (AHCMC) NDA funding in the amount of $6.8 million. AHCMC annually distributes grants to organizations and individuals to help fund enriching cultural activities in our County and provides the infrastructure and support to maintain a robust creative community that includes more than 500 cultural organizations and 2,000 artists and scholars.
• More than $220,000 for the Historical Activities NDA, which includes funding for the County’s 250th Anniversary Project, the Unfinished Revolution Initiative and the Black Resistance Oral History Initiative.

Public Safety

The Council voted to approve funding to enhance public safety across Montgomery County. Some highlights include:

• Montgomery County Police Department (MCPD) funding in the amount of $330 million, which represents an increase of nearly $18 million. The largest increases in costs are a result of compensation adjustments and increases, one-time lapse adjustments, retirement adjustments and personnel costs. Other increases are attributed to new technology enhancements to support police operations, including an expansion of the Drone as First Responder Program.
• More than $780,000 for the Police Accountability Board, which is an advisory entity that reviews cases heard by the Administrative Charging Committee to determine trends or any other concerns in police disciplinary cases.
• Montgomery County Fire and Rescue Service (MCFRS) funding in the amount of $290 million, which includes adding six firefighter positions to Station 40 and a new Emergency Medical Services duty officer to improve health outcomes in under-resourced areas of the Count y.
• State’s Attorney’s Office funding in the amount of $25 million, which is used to prosecute criminal violations in Montgomery County, educate the public concerning criminal justice issues and provide training to lawyers for future service.
• Office of Emergency Management and Homeland Security (OEMHS) funding in the amount of more than $4 million, including $1.2 million for the Nonprofit Security Grant Program to help protect nonprofit organizations and houses of worship. The role of the OEMHS is to plan, coordinate, prevent, prepare for and protect against major threats to the Montgomery County community and manage the County’s unified response and recovery.
• Sheriff’s Office funding in the amount of $30 million, which provides general law enforcement, judicial enforcement and specialized public safety services to the residents of Montgomery County. The Sheriff’s Office serves warrants and court orders and is responsible for transporting inmates.

Economic Development

The Council voted to approve economic development initiatives focused on job creation and business attraction and development in Montgomery County. Some highlights include:

• Funding in the amount of $4.7 million for the Montgomery County Economic Development Corporation (MCEDC). The MCEDC NDA was created to be the County’s designated lead economic development organization and implement the County’s economic development strategic plan, which includes marketing, business attraction and retention, entrepreneurship, and promoting the County’s economic base.
• More than $2.4 million for Montgomery County’s business incubators to help grow businesses.
• Conference and Visitors Bureau funding in the amount of $2.2 million. The Conference and Visitors Bureau, also known as Visit Montgomery, promotes the County as a destination for meetings, conferences, student group travel, group tours, leisure travel and sports events.
• Small Business Support Services funding in the amount of $2.3 million, which provides a vehicle for funding ongoing contracts with third parties to provide specialized assistance and programs for small businesses and entrepreneurs.
• More than $560,000 to establish BioHub Maryland in Montgomery County to support the funding to operate a 7,500-square-foot biomanufacturing training center.
• UM3 – Institute for Health Computing funding in the amount of $6.3 million, including the restoration of $1.3 million in lease payments from FY24 that required the institute to sign a lease, which it identified and moved into in Jan. 2024, as well as the full $5 million in annual funding the County committed to provide from FY24 through FY29. UM3 is exploring how artificial intelligence, machine learning and clinical analytics can facilitate knowledge discovery for human health and wellbeing. It is being developed through a partnership with the County and multiple statewide institutions for higher education.
• WorkSource Montgomery funding in the amount of $2.2 million. WorkSource Montgomery is the County’s designated workforce development corporation and fiscal agent responsible for local administration of the Workforce Innovation and Opportunity Act and coordination of the public workforce development system.
• More than $4.1 million for the Economic Development Fund, which provides assistance for private employers who are located, plan to locate, or substantially expand operations in the County.
• More than $74 million for the Alcohol Beverage Services’ (ABS) operating budget, including a transfer of $26.6 million to the General Fund in FY25.

Health and Human Services

The Council voted to approve numerous Health and Human Services programs that residents rely on for health care, safety-net services, and older adult and youth services. Some highlights include:

• The Council approved more than $504 million for the Department of Health and Human Services (DHHS), which represents an increase of more than $27 million, or 5.8 percent from the approved FY24 Operating Budget.

Some of the divisions and initiatives that are part of the DHHS budget include:

• Aging and Disability Services with $72.6 million that provides seniors, persons with disabilities and their families with home and community-based support services and protections.
• Behavioral Health Services with $61.8 million allocated across 10 program areas that promote mental wellness, prevent substance abuse and suicide, and ensure access to a comprehensive treatment recovery system of effective services and supports for children, youth and families and adults and seniors with behavioral health needs.
• Children, Youth and Family Services with $124.7 million allocated across eight program areas that provide protection, prevention, intervention, treatment and financial assistance services for children and their families.
• Public Health and Minority Programs with $116.3 million to protect and promote the health and safety of residents by implementing intervention strategies to contain or prevent disease and fostering public-private partnerships to increase access to health services.
• Services to End and Prevent Homelessness with $49 million to provide access to safe, affordable housing and opportunities to improve quality of life through a continuum of services that includes housing stabilization, homeless diversion and permanent housing options.
• Among initiatives that include DHHS involvement with MCPS, $13.5 million is provided for Early Childhood Services, $10.3 million for the Early Care and Education NDA, $2 million for Child Care Subsidies, $45.7 million for School Health Services, $14.7 million for Linkages to Learning, $8.6 million for High School Wellness Center and Wellness Initiatives, $7.1 million for the Newcomers Initiative and $1 million for Cluster Projects.

Housing

The Council voted to approve funding for housing programs to create and preserve affordable housing in Montgomery County. Some highlights include:

• Department of Housing and Community Affairs (DHCA) funding in the amount of $79 million, including $14 million from the General Fund and $8.8 million from the Grant Fund (which programs federal and state grants related to community development). 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.
• Housing Initiative Fund (HIF) resources in the amount of $56 million to finance the production, acquisition and preservation of affordable housing and rental assistance programs for households with low incomes and for households moving from homelessness to permanent housing.
• Funding for the Homeownership Assistance Program totaling $4 million.
• Housing Opportunity Commission (HOC) funding totaling nearly $8.3 million. HOC’s mission is to provide affordable and supportive services that enhance the lives of individuals and families who have low to moderate incomes. Since HOC is an external organization the County’s contribution is part of HOC’s Public Fund. HOC’s full FY25 recommended operating budget is more than $348 million.

Government Operations and Collective Bargaining Agreements

The Council voted to approve funding for service delivery through government operations and to invest in the County’s workforce. Some highlights include:

• Full funding for the collective bargaining agreements with the Fraternal Order of Police (FOP) Lodge 35, the Montgomery County Career Fire Fighters Association of the International Association of Firefighters (IAFF), Local 1664, and the Municipal and County Government Employees Organization (MCGEO), Local 1994.
• Funding to add two positions to the Office of the Inspector General (OIG) for increased oversight of MCPS as part of the OIG’s more than $3.6 million overall budget. The mission of the office is to prevent and detect fraud, waste and abuse in government activities and propose ways to increase the legal, fiscal and ethical accountability of County government and County-funded agencies.
• Board of Elections funding in the amount of $17 million, including more than $2.79 million in increased costs for State Board of Elections expenses, $1.95 million enhancement for State Board of Elections new election equipment for state mandated pollbooks, and $70,000 in one-time funds to be used for outreach for the 2024 election cycle.
• Office of Racial Equity and Social Justice (ORESJ) funding of $1.6 million. ORESJ works with all County departments to ensure race is not a predictor of outcomes for Montgomery County residents.
• Office of Food Systems Resilience (OFSR) funding of $14 million to develop and maintain a strategy for improving the efficiency, equity, sustainability and resilience of the food systems in Montgomery County. The budget increases focus on programming and grants supporting the Strategic Plan to End Childhood Hunger and transitioning the COVID-19 era Food Staples Program to a permanent program model to help reduce food insecurity of residents.
• Funding of $1.2 million for the Guaranteed Income NDA. First started in FY22, the Guaranteed Income NDA funded a three-year pilot of the MoCo BOOST Program (Building Our Opportunity and Strength Today) whose purpose was to provide direct, recurring cash payments to targeted groups of people without strings attached. The goals of the program were to alleviate poverty, provide a form of financial stability and give people the ability to make their own choices to improve their economic position.
• Funding of $73.5 million for Technology and Enterprise Business Solutions, which provides technology solutions and services to facilitate the delivery of a wide range of services to all branches of government.
• More than $5 million in funding for the transition for MC311 from the Public Information Office to Technology and Enterprise Business Solutions in FY25. MC311 provides the public with a single three-digit number to call for County information and service.
• The approved budget also includes $532,000 to support the deployment of artificial intelligence (AI) strategies in a deliberate manner into County Operations, including the launch of a data classification effort to protect sensitive data.

Transportation and Environment

The Council voted to approve numerous transportation programs and environmental initiatives. Some highlights include:

• Montgomery County Department of Transportation (MCDOT) funding in the amount of $63 million. These funds are divided among MCDOT’s General Fund, the Leaf Vacuuming Fund and the Grant Fund. The General Fund is used to plan, design and coordinate development and construction of transportation and pedestrian routes, operate and maintain the traffic signal system and road network and to develop and implement transportation policies to maximize efficient service delivery.
• Division of Transit Services funding in the amount of $193 million, which provides public transportation services in the County and its budget is composed of the Mass Transit Fund and the Grant Fund.
• More than $370,000 for the Vision Zero NDA, which is an increase of 85 percent from last year’s budget to fund the oversight and coordination of the Vision Zero Initiative to end traffic related serious injuries and fatalities. This increase in funding was made possible because of a federal grant.
• Department of Environmental Protection (DEP) funding in the amount of almost $200 million. The overall DEP budget has four ongoing funds, which include $9.6 million for the General Fund, $36 million for the Water Quality Protection Fund, $12.3 million for the Solid Waste Collection Fund and $142 million for the Solid Waste Disposal Fund. DEP works to enhance the quality of life in Montgomery County by protecting and improving air, water and land in a way that fosters smart growth, a thriving more sustainable economy and healthy communities.
• Montgomery County Green Bank (MCGB) funding in the amount of more than $19 million, which is a more than $478,000 increase over last year’s budget. The MCGB provides financial backing and technical expertise to advance clean energy initiatives throughout the County. This work is critical to helping the County meet its climate goals to reduce emissions by 80 percent by 2027 and 100 percent by 2035.
• Climate Change NDA funded in the amount of $718,344, which is a near 50 percent increase compared to the previous year. The NDA was first created to fund the development of the Climate Action Plan and related studies and then shifted to other planning efforts and to assisting departments with various climate-related initiatives.
• WSSC Water fully funded in the amount of $1.02 billion which provides public water and sewer services to approximately two million residents in Montgomery and Prince George’s Counties. WSSC Water 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.

Recreation, Parks and Planning

The Council voted to approve numerous recreation, parks and planning programs. Some highlights include:

• Department of Recreation funding in the amount of $64.4 million, which is an increase of $4.7 million, or 7.8 percent, from the approved FY24 Operating Budget, and includes increased funding for school based Out of School Time programming.
• Maryland-National Park and Planning Commission (M-NCPPC) tax-supported funding in the amount of $183.3 million. M-NCPPC is a bi-county agency that makes recommendations on planning and growth, protects natural, cultural and historic resources and provides leisure and recreational experiences. The Montgomery Planning Department prepares master and sector plans for Planning Board review and approval by the Council. The Montgomery Parks Department oversees the acquisition, development and management of the County’s parks system, which is currently comprised of more than 37,000 acres across 420 parks.

Visit this webpage for more information on the FY25 Operating Budget and this webpage more information on the FY 25-30 CIP.