Montgomery County Council Meets on May 5 to Review FY26 Operating Budgets, FY25-30 CIP Amendments and Proposed Tax Options

For Immediate Release: Friday, May 2, 2025

Also on May 5: Council will receive an overview of Montgomery County government revenues and expenditures

The Montgomery County Council will meet on Monday, May 5 at 9:30 a.m. to receive an overview of County government revenues and expenditures. The Council also will begin its review of Fiscal Year (FY) 2026 Operating Budgets.

Overview of revenues and expenditures

Status report: The Council will receive an overview of County government revenues and expenditures. The staff report with details about the presentation will be available by Monday, May 5.

FY26 Operating Budget

The Council will review the following FY26 Operating Budget items:

Property Tax Rate Options: The Council will review and is expected to take a straw vote on recommendations for the weighted real property tax rate. The County Executive’s amended property tax recommendations, submitted on April 24, propose a weighted real property tax rate of $1.0255 per $100 of assessed value, without a 3.5 cent (Montgomery County Public Schools) MCPS supplemental rate. The Government Operations and Fiscal Policy (GO) Committee reviewed the recommendations at a meeting held on May 1. The committee recommends an FY26 weighted real property tax rate of $1.0255 per $100 of assessable base, which is the same rate as approved in FY25.
Property Tax Credit for Income Tax Offset (IOTC): The Council will review and is expected to take a straw vote on the FY26 ITOC, which provides a tax credit to owner-occupied properties in the County. The County Executive recommends an FY26 ITOC value of $752 for all eligible properties. The GO Committee reviewed the recommendations at a meeting held on May 1 and recommends an ITOC value of $692 per eligible property.
Income Tax Rate: The Council will review the County Executive’s recommendation to increase the County income tax rate from 3.20 percent to 3.30 percent as part of his amendments submitted on April 24, 2025, instead of increasing the property tax rate. The County Executive’s recommended resolution also would enact the increase retroactively to apply to earned income beginning Jan. 1, 2025 (i.e., Tax Year 2025). The GO Committee met on Thursday, May 1, to review the Executive’s recommendation and how it impacts residents and the revenues for the County. The staff report provides the background and analysis for the Council’s discussion.
Working Families Income Supplement NDA: The County Executive recommends an increase of more than $3.1 million, or 29.2 percent, from the approved FY25 Operating Budget. The change reflects increased costs due to actual state billing. The Working Families Income Supplement NDA provides funds to supplement the state’s Refundable Earned Income Tax Credit (EITC). The County Executive has recommended increasing the County’s match of the state EITC from 56 percent to 65 percent. This proposal would add more than $5 million to FY26 costs. The Council will review this proposal, and the Council staff report will be available by Monday, May 5.
Maryland-National Park and Planning Commission (M-NCPPC): The Planning, Housing and Parks (PHP) Committee reviewed the County Executive’s recommended FY26 Operating Budget for M-NCPPC and recommends multiple amendments, which can be found in the staff report. The County Executive recommends an increase of more than $8.1 million, or four percent, from the approved FY25 Operating Budget for M-NCPPC. The total recommended FY26 budget of more than $214 million includes $45 million for the Administration Fund and $136 million for the Parks Fund. Recommendations from the PHP Committee can be found on pages 1 through 6 of the Council staff report.
WSSC Water: The total proposed FY26 Operating Budget is $1.14 billion, which represents an increase of $116.2 million, or 11.4 percent, from the approved FY25 Operating Budget. The largest portion of the increase is attributed to salaries and wages. The proposed WSSC Water rate increase across volumetric fees and fixed fees is 9.8 percent, which falls between the Spending Control Limit rate increase ceilings approved by the Montgomery County Council and Prince George’s County Council. The Transportation and Environment (TE) Committee concurs with WSSC Water’s proposed FY26 Operating Budget expenditures, with the recognition that an additional $1.7 million in undesignated reductions will be needed to offset increases in the Regional Sewage Disposal Charge not currently reflected in the proposed budget. The committee also concurs with WSSC Water’s proposed 9.8 percent volumetric rate and fixed fee increases for FY26.
WSSC Water FY26 System Development Charge: WSSC Water is proposing a 2.5 percent increase to the FY26 System Development Charge to address an ongoing revenue gap in the fund. The TE Committee concurs with WSSC Water’s proposed 2.5 percent increase in the System Development Charge for FY26.
Washington Suburban Transit Commission: As required by County Code, the Washington Suburban Transit Commission (WSTC) approved and transmitted an FY26 administrative expense budget in the amount of $536,923, of which $167,845 is the Montgomery County share. This represents a decrease of $6,032 in the total administrative expense budget and a $816 decrease in Montgomery County’s share. The Council will vote to make a recommendation about WSTC’s administrative expense budget prior to the May 8 bi-county meeting with the Prince George’s County Council. The two Councils will vote on the final WSTC administrative expense budget.
Technology and Enterprise Business Solutions (TEBS): The County Executive recommends a decrease of $765,285, or one percent, from the approved FY25 Operating Budget for TEBS, which facilitates the delivery of a wide range of services in all branches of County government. The GO Committee reviewed the recommendations at a meeting held on April 22. The committee’s recommendations can be found on page 2 with additional information in the staff report.
Device Client Management Non-Departmental Account (NDA): The County Executive recommends an increase of more than $1.9 million, or 12.3 percent, for the Device Client Management NDA. The program provides general Information Technology (IT) support directly to departments and employees through the County’s IT Help Desk. The GO Committee’s recommendations can be found on page 2 with additional information in the staff report.
Telecommunications NDA: The County Executive recommends no increase from the approved FY25 Operating Budget of more than $4 million for the Telecommunications NDA, which provides the operating expenses for telecommunication charges incurred by County departments. The GO Committee’s recommendations can be found on page 2 with additional information in the staff report.
Cable TV and Communications Plan: The County Executive recommends a reduction of $911,800, or 13.91 percent, for the Cable TV and Communications Plan. The GO Committee’s recommendation can be found on page 2 with additional information in the staff report.
Department of General Services (DGS): The County Executive recommends an increase of $4.7 million, or 11.5 percent, from the approved FY25 Operating Budget. The increase includes more than $1.9 million in programmatic and staffing enhancements and $328,338 in reductions for one-time items funded in FY25. The County Executive also recommends an increase of $235,296, or 2.6 percent, for the Print and Mail Fund. The GO Committee voted to approve the FY26 Operating Budget as recommended by the Executive, except for the addition of $72,016 for a full-time fiscal assistant position. The committee also voted to approve all seven FY25-30 Capital Improvement Program (CIP) amendments as recommended by the County Executive.
General Services – Fleet: The County Executive recommends an increase of more than $13.6 million, or 13.4 percent, from the approved FY25 Operating Budget. The recommendation includes an increase for four new positions for the apprentice program and enhancements for IT support services and future fleet replacements. The TE Committee voted to approve this operating budget and one CIP amendment for electric vehicle chargers, as recommended by the County Executive.
Leases NDA: The County Executive recommends a reduction of more than $1.5 million, or 8.34 percent, from the approved FY25 Operating Budget. The recommendation includes $1.76 million in reduced lease costs and the elimination of $314,835 in one-time enhancements. The staff report with the GO Committee recommendations will be available by Monday, May 5.
Montgomery County Economic Development Corporation (MCEDC) NDA: The County Executive recommends an increase of $590,128, or 12.6 percent, from the approved FY25 Operating Budget. The recommendation includes a $450,000 enhancement and three percent inflationary adjustment for all nonprofit service providers. The Economic Development (ECON) Committee voted unanimously in support of the $450,000 enhancement and concurred with the three percent inflationary adjustment recommended by the Executive.
Department of Environmental Protection (DEP) – Recycling and Resource Management: The County Executive recommends a $44.3 million, or 28.6 percent increase, from the approved FY25 Operating Budget for Recycling and Resource Management. The largest increase is more than $35 million in additional funds for the Resource Recovery Facility. The TE Committee recommendation can be found on page 2 with additional information provided in the staff report.
FY26 Solid Waste Service Charges: In an amendment to the Solid Waste Disposal Fund budget transmitted on April 24, the County Executive’s assumptions would result in increases to solid waste service charges. The changes include increases of $85.04 for single-family properties, $14.56 for multi-family properties and an 86.2 percent increase for non-residential charges. The TE Committee recommendation can be found on page 2 with additional information provided in the staff report.

The Council meeting schedule may change from time to time. View the current Council and Committee agendas, Council staff reports and additional information on items scheduled for Council review on the Council website .

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: 25-150
Media Contact: Sonya Healy 240-777-7926, Benjamin Sky Brandt 240-777-7884

For updates and link to press release, see here: http://www2.montgomerycountymd.gov/mcgportalapps/Press_Detail.aspx?Item_ID=46979

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Montgomery County Council Meets on May 5 to Review FY26 Operating Budgets, FY25-30 CIP Amendments and Proposed Tax Options – MocoFeed