Montgomery County Council President Natali Fani-González made the following statement about the Fiscal Year 2027 Operating Budget, the Fiscal Year 2027 Capital Budget and the Fiscal Year 2027-2032 Capital Improvements Program after the Council reached its preliminary agreement today with a vote of 9-2. The Council’s final vote on the capital and operating budget resolutions for Montgomery County is scheduled for May 21.
Below is Council President Fani-González’s full statement:
Following two months of intense deliberation, hard work and collaboration, I am pleased to announce that the County Council has approved a $7.9 billion Operating Budget and a $6.3 billion Capital Budget for the upcoming year. The vote on budget resolutions takes place next week. I want to thank Council Vice President Balcombe and all my colleagues on the Council for the way we all came together to find solutions to benefit the residents of Montgomery County.
It was not easy.
And that’s because we find ourselves in incredibly challenging fiscal and economic times. The federal government is retrenching, disrupting the livelihoods of federal workers and contractors that call Montgomery County home. In addition, they are implementing many other policies that are harming our economy, from the horrific attacks on immigrant families, the war in the Middle East to inflation and tariffs. It is prudent to budget for a future with increasing downside risks.
And in this context, the County Executive transmitted to us a budget that missed the mark on many levels. It recklessly raised taxes on wage earners and homeowners. It grew spending at unsustainable levels and widened our structural deficit.
This Council mapped a different course. We made challenging, and at times, painful decisions to balance the competing needs with limited resources.
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On the tax side, we were mindful of how difficult it is for residents to make ends meet in this economy. Ever expanding costs—energy, food, rent, and healthcare to name a few—are overwhelming any increase in wages. That is why we rejected the County Executive’s proposed 6.3 cent property tax increase. We also rejected the reckless income tax increase proposed by the County Executive that would have affected everyone regardless of how much money they make.
Instead, for the first time ever, we now have a progressive income tax structure where 95% of County wage earners will receive an income tax break, while the highest earners will be asked to pay slightly more. We are putting more money in the pockets for folks with lower incomes, particularly those who rent. This is walking the walk on our progressive values.
On education, we approved record funding for Montgomery County Public Schools, with $143 million increase in local operating funding for MCPS. This 6.1% increase from last year will support the Board of Education’s efforts to address the achievement gap, provide security in the schools, and anything else they consider essential.
We increased investments in our public safety departments, ensuring our first responders and public safety professionals have the resources they need to sustain service levels and strengthen their workforces. And I’m especially proud of the dedicated funding included in the capital budget for the new 4th District Police Station in Glenmont.
We’ve upheld our priority to protect safety net services by providing essential funding for our nonprofit service providers, recognizing that the demands on our nonprofit partners are higher than ever. And we’ve made continued investments to expand affordable housing and support services for working families.
We understand that families, small businesses and nonprofit organizations across our wonderfully diverse County are operating in an ever-evolving fiscal reality where cruel and unpredictable changes made by the federal administration are requiring us all to step up and do more with less.
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Now, more than ever, the buck stops at the local level of government. It’s our job to make fiscally responsible decisions on behalf of all our residents today and for Montgomery County’s future.
And our partners in labor, the Municipal & County Government Employees Organization (MCGEO), the Fraternal Order of Police (FOP), and International Association of Fire Fighters (IAFF), understand our situation. I truly appreciate their active role in helping us find savings and better, more cost-efficient ways to deliver essential services that target the most vulnerable.
This work would not be possible without the dedicated support of the hardworking professionals in this building. Thanks to the entire Council central staff, led by Executive Director Craig Howard, and Deputy Directors Sandra Marin and Gene Smith. Your knowledge, care and attention to detail are essential to this budget process. I also want to thank the Clerk of the Council Sara Tenenbaum and her team, Chief Attorney Christine Wellons, and all our attorneys and analysts, and our communications team, led by Sonya Healy. It is a privilege to work with each and every one of you and I appreciate all you do on behalf of our amazing residents.
Budgets are moral documents, and this one helps us shape a fairer, more sustainable future. We have finally delivered a progressive income tax. We have protected the most vulnerable with direct services. We have helped keep costs down for residents struggling in this economy. We delivered wage increases to our dedicated, hard-working public employees. We have supported our non-profits and increased assistance to working families with young kids.
Together, we are meeting residents where they are at today while setting the County up for a bright future.
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Read the original article at mccouncil