Council passes $7.9 billion budget with new progressive income tax structure Newsletter from Council President Fani-González – Mocofeed

Neighbors:

Today the Council took a final vote to pass the $7.9 billion operating budget and a $6.3 billion six-year capital budget. The Council’s budget decisions this year have been some of the most challenging since the Great Recession. Thank you to all of our residents, community partners and nonprofits who expressed their views on the budget throughout our deliberations. Your input has guided this process every step of the way.

There were several key actions that shaped this budget.

1. The Council held the line on property taxes by rejecting the County Executive’s proposed 6.3 cent property tax increase per $100 of assessed property value. 

2. We rejected the County Executive’s 3.3% income tax increase for everyone regardless of how much money they make. Instead, I led the Council to adopt a new progressive income tax structure where 95% of residents will receive an income tax break, while the highest earners will be asked to pay slightly more. Tax scenarios are found in the tax structure comparison chart below.  

   To offset the cost of the progressive income tax, we eliminated the Income Tax Offset Credit (ITOC). The ITOC tax credit was only available to owner occupied homeowners who applied and were eligible to receive this tax credit. Renters were not eligible for this tax credit, and in recent years, we saw a decrease in the number of people who received this credit. 

   Additionally, there are several other property tax credit programs in Montgomery County that property owners can still take advantage of, including the County Homestead Tax Credit, the Individuals 65 and Above and Retired Military Services Members Tax Credit, and the State Homeowners Property Tax Credit. 

   With the removal of the ITOC and combined with a real progressive tax plan, we put in place a new system that benefits those with less. The average homeowner earning $150,000 with a $645,000 home and no ITOC will see a $450 tax break, as compared to paying $506 more under the Executive’s plan.

3. Through this adopted budget, we slowed the growth in government spending proposed by the County Executive from 5.7% to 4.4% by making strategic investments in critical services for residents, while achieving savings in other funding categories.
4. I asked colleagues to prioritize funding for our nonprofit service providers. As a result, we secured additional funding for nonprofits with a 3.5% inflationary increase (a higher rate than the 2.5% increase proposed by the County Executive).
5. On education, the Council voted to fund MCPS at more than $3.7 billion, which is $143.7 million more than last year. MCPS will receive more than $1.9 billion provided over the six-year period for capital projects and $357.1 million in FY27. These projects are focused on the modernization and expansion of MCPS facilities to address aging infrastructure and improve teaching and learning environments. Some highlights for FY27 include maintaining the construction schedule for Damascus High School and Eastern Middle School and fully funding school security systems. 
6. Early care and early childhood education is a top priority and this approved budget allocates more than $39.5 million for these programs. 
7. The operating budget also provides $351 million for Montgomery College in support of higher education and economic and workforce development.
8. Approved collective bargaining agreements and salary increases for our County employees.

Additional Budget Highlights:

Health and Human Services

• A total of $574 million has been allocated to the critical services the Department of Health and Human Services (DHHS) provides, such as its public health services, minority health initiatives, aging and disability services, social services and more. The DHHS budget includes nearly $68.2 million for Services to End and Prevent Homelessness, including investments in supportive housing, rapid rehousing, housing stability services and healthcare services for residents experiencing homelessness. The budget also significantly expands the Behavioral Health and Crisis Services to more than $98 million, including support for the County’s 24-Hour Crisis Center, school-based mental health services, trauma services and prevention and harm reduction programs. 

Public Safety

• Increased investments in public safety, including dedicated $40 million in funding in the capital budget for the new 4th District Police Station in Glenmont.

Economic Development

• The Council allocated $5.2 million for the Montgomery County Economic Development Corporation, which implements the County’s economic development strategic plan.
• More than $8 million for the Economic Development Fund, plus additional funding to provide small business support.
• The Institute for Health Computing project will receive $50 million. 
• The Council provided $9.9 million for the ongoing North Bethesda Metro Station Area Redevelopment Infrastructure project. 

Quality of Life

• The Council allocated $70.9 million for Montgomery Recreation and $154.5 million for Montgomery Parks.
• Capital funding commitments are secured in this budget for the new Wheaton Arts and Cultural Center.
• Funding in the amount of $77.5 million for the Department of Housing and Community Affairs to preserve and expand affordable housing.
• The Council provided $52.3 million for the Housing Initiative Fund, which serves as the County’s primary affordable housing funding source. 
• The Council allocated $6.8 million in funding for the Arts and Humanities Council to continue its work supporting excellence in arts and humanities.

Environment

• The Council approved $36 million in funding for the Department of Environmental Protection’s General Fund and Water Quality Protection Fund. This includes funding to support the County’s Climate Action Plan and resources for stormwater management, watershed restoration, and more.

Transportation

• The Council funded more than $317.2 million for the Department of Transportation, which supports services such as infrastructure maintenance and traffic management as well as the County’s free Ride On bus service. Continued funding is also included for the Vision Zero initiative, which is focused on enhancing pedestrian and bicyclist safety and eliminating traffic deaths and serious injuries on County roadways.

Watch my budget message.

Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month

I was honored to lead the Council’s commemoration alongside Councilmember Kristin Mink recognizing Asian American, Native Hawaiian and Pacific Islander (AANHPI) Heritage Month. We were proud to be joined by Asian American, Native Hawaiian and Pacific Islander residents and leaders to celebrate this year’s theme, “A Legacy of Leadership and Resilience.”

With more than 160,000 residents identifying as Asian American, Native Hawaiian and Pacific Islander, our AANHPI community is one of our largest, fastest growing and most diverse communities in Montgomery County. We are proud to have such a strong and active AANHPI community whose leadership, innovation, and dedication continue to enrich and strengthen Montgomery County.

Watch the AANHPI Heritage Month commemoration.

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Jewish American Heritage Month

We recently recognized May as Jewish American Heritage Month at the County Council. Montgomery County is proudly home to the largest Jewish population in the state. We celebrate Jewish heritage and honor the important contributions of Jewish Americans in our community and beyond. Happy Jewish American Heritage Month!

Memorial Day Observances

As Memorial Day approaches, let us remember and honor those who made the ultimate sacrifice to defend our freedom and our way of life. We are eternally grateful for their service. We are also keeping all the Gold Star families in our thoughts, as we know that the void left from losing a loved one is never filled. You can pay tribute to our fallen heroes at Memorial Day observances across Montgomery County, including observances hosted by the cities of Gaithersburg and Rockville.

Taste of Wheaton Celebrates 30 Years

Come celebrate Maryland’s longest-running food and culture festival on Sunday, June 7 at Marian Fryer Town Plaza in Wheaton. Taste of Wheaton features international cuisines, live music, cultural performances, artisan vendors, and fun for all ages! It’s a vibrant showcase of our community’s diversity where you can support local businesses, share time with neighbors, and enjoy a festive, family-friendly atmosphere. Follow @Wheaton_MD on Instagram and Facebook for announcements and highlights, and learn more about the festival. I hope to see you there!

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Read the original article at mccouncil