The Montgomery County Council will meet on Friday, May 8 at 9:30 a.m. to review the Fiscal Year (FY) 2027 Operating Budget. Each Council staff report contains additional budget information including items identified for the Council’s budget reconciliation process.
More detail on each agenda item is provided below.
Review: The Council will review the County Executive’s proposal to increase the County income tax rate from 3.2 to 3.3 percent of an individual’s Maryland taxable income for the taxable year beginning after Dec. 31, 2026, and subsequent years. Montgomery County’s income tax rate was set at 3.2 percent for the FY04 Operating Budget, the maximum rate allowed for that fiscal year. The Council does not annually approve an income tax rate, like it does for the property tax rates. The current rate remains in effect until the Council adopts a new resolution to change the rate. On April 17, Council President Natali Fani-González’s issued a budget plan that proposed rejecting the property tax rate increase proposed by the County Executive and created a progressive income tax rate structure.
The Government Operations and Fiscal Policy (GO) Committee met on April 29 to review the proposed increase in the income tax rate. The GO Committee recommends that the Council reject the Executive’s recommended property tax increase of 6.3 cents for FY27 and reject the Executive’s recommended income tax rate of 3.3 percent on all taxable income. In addition, the committee recommends the creation of a progressive income tax structure starting on Jan. 1, 2027. The new tax brackets recommended by the committee are detailed in the Council staff report.
FY27 Property Tax Credit for Income Tax Offset
Review: The Council will review recommendations for the FY27 Property Tax Credit for Income Tax Offset. The ITOC is a property tax credit related to the County’s income taxes but is only available to eligible owner-occupied housing units. The County Executive recommends a value of $692 for the FY27 ITOC. The GO Committee recommends reducing the ITOC to $0 as part of its package of recommendations related to the income tax structure in the County. This recommendation aligns with the Council President’s budget proposal.
The GO Committee’s recommendation for the ITOC eliminates the $89.3 million gap in resources for FY27, creates $50 million in one-time savings and addresses most of gap in FY28 from the proposed progressive income tax structure. These additional resources balance the revenue reduction from the progressive income tax structure and results in $50 million in one-time resources in FY27. The GO Committee recommends allocating the $50 million for the FY27-32 Capital Improvement Program. Details about the impact from this recommendation are included in the Council staff report.
Working Families Income Supplement Non-Departmental Account
Review: The Council will review the $36.1 million recommended FY27 Operating Budget for the Working Families Income Supplement Non-Departmental Account (NDA), which represents an increase of $4.8 million, or 15.4 percent, compared to the approved FY26 Operating Budget. The Working Families Income Supplement provides funds to supplement the state’s refundable Earned Income Tax Credit (EITC) and is intended to benefit low income working families in the County. The recommendation includes a four percent increase, or more than $3 million, to the County match to the state for the Working Families Income Supplement. The increase also includes more than $1.7 million to realign annual appropriation with actual expenses invoiced by the state.
Any Council action to change the Working Families Income Supplement would not impact the ability to receive the State Earned Income Tax Credit, which is the largest portion of the total tax credit received by eligible individuals and families.
The GO Committee recommends approval of a $1.76 million increase to raise the County’s match from 56 percent to 60 percent based on actual billing and percentage increases, noting that each one percent adjustment in the County match equates to approximately $604,000. The committee also recommends reducing a separate $3 million increase.
Review: The Council will review the County Executive’s recommended $11.3 million FY27 Operating Budget for the Office of Animal Services, which represents an increase of $299,791, or 2.7 percent, compared to the approved FY26 Operating Budget. The recommended increase is comprised of compensation adjustments and other cost increases. The Office of Animal Services provides education and resources on animal care and safety to pet owners and ensures the responsible enforcement of laws pertaining to animal welfare and protection.
The Public Safety (PS) Committee concurred with the FY27 Operating Budget for the Office of Animal Services as recommended by the Executive and recommended placing five positions on the reconciliation list.
Green Bank Non-Departmental Account (NDA)
Review: The Council will review the $19.3 million FY27 Operating Budget for the Green Bank NDA, which represents an increase of nearly $2.5 million, or 14.7 percent, compared to the approved FY26 Operating Budget. The increase reflects a continuation of current staffing and service levels in conjunction with the recommended restoration of the baseline County allocation to the Green Bank NDA to match fuel energy tax revenues that were expected to be lower in FY26. Fuel energy tax revenues in FY26 were closer to FY25 levels than originally projected. The increase would restore both the affordability decrease of more than $1.1 million and part of the more than $1 million reduction based on lower projections.
The joint Transportation and Environment (TE) and GO Committee concurred with the FY27 Operating Budget for the Green Bank NDA as recommended by the Executive.
Art and Humanities Council Non-Departmental Account
Review: The Council will review the $7.2 million recommended FY27 Operating Budget for the Arts and Humanities Council NDA, which represents an increase of $176,349, or 2.5 percent, compared to the approved FY26 Operating Budget. The increase is due to a 2.5 percent inflationary adjustment to non-service provider contracts. The Arts and Humanities Council NDA provides funding for the Arts and Humanities Council of Montgomery County, which is the County’s designated local arts agency.
The Education and Culture (EC) Committee concurred with the FY27 Operating Budget for the Arts and Humanities Council NDA as recommended by the Executive.
Payments to Municipalities Non-Departmental Account
Review: The Council will review the $26.1 million recommended FY27 Operating Budget for the Payments to Municipalities NDA, which represents an increase of nearly $3.8 million, or 16.5 percent, compared to the approved FY26 Operating Budget. The reimbursement provided through this NDA offsets instances of tax duplication for public services in municipalities. In accordance with state law, it is required that the County provide only the property tax-funded portion of those costs to municipalities. The increase is due to an updated formula calculation for the reimbursements, in addition to a decrease which reflects the removal of a one-time increase in the FY26 budget for Takoma Park crossing guards.
The GO Committee concurred with the FY27 Operating Budget changes to the NDA as proposed by the County Executive.
Housing Opportunities Commission Non-Departmental Account
Review: The Council will review the more than $9.5 million recommended FY27 Operating Budget for the Housing Opportunities Commission NDA, which represents an increase of $378,371, or 4.1 percent, compared to the approved FY26 Operating Budget. The increase is comprised of compensation adjustments and required operating expenses that reflect a continuation of current staffing and service levels. The Housing Opportunities Commission (HOC) has requested an additional $2.89 million in funding for two programmatic enhancements. The County Executive’s recommended budget does not provide funding for these items.
The Planning, Housing and Parks (PHP) Committee concurred with the FY27 operating budget as recommended by the Executive with two HOC-requested items placed on the reconciliation list. Additional details are available in the Council staff report.
Review: The Council will review the County Executive’s recommended $33.3 million FY27 Operating Budget for the Montgomery County Sheriff’s Office, which represents an increase of less than one percent compared to the approved FY26 Operating Budget. The recommendation includes a net decrease in tax-supported line items, which includes compensation adjustments and other cost increases. The duties of the Sheriff’s Office include providing security for employees and visitors to the circuit court building and other facilities, serving domestic violence petitions and peace orders, executing evictions as issued by the court and overseeing the County’s Family Justice Center.
The PS Committee recommended approval of the FY27 Operating Budget for the Sheriff’s Office as recommended by the Executive, with one reduction and one item placed on the reconciliation list.
Montgomery County Economic Development Corporation Non-Departmental Account
Review: The Council will review the more than $5.7 million FY27 Operating Budget for the Montgomery County Economic Development Corporation (MCEDC) NDA, which represents an eight percent increase from the approved FY26 Operating Budget. The increase in the Executive’s recommendation includes $338,924 in programmatic and staffing enhancements. MCEDC is the County’s lead economic development organization and implements the County’s economic development strategic plan.
The Economic Development (ECON) Committee concurred with the FY27 Operating Budget as recommended by the Executive. Additional details are available in the Council staff report.
WorkSource Montgomery Non-Departmental Account
Review: The Council will review the $3.4 million FY27 Operating Budget for the WorkSource Montgomery, Inc. NDA, which represents a 7.8 percent increase from the approved FY26 Operating Budget. The increase in the Executive’s recommendation includes $170,000 in programmatic and staffing enhancements. This NDA provides funds for the County’s designated workforce development corporation. WorkSource Montgomery is the County’s fiscal agent responsible for local administration of the Workforce Innovation and Opportunity Act (WIOA) and coordination of the public workforce development system in the County.
The ECON Committee voted to reduce funding for one new position and voted to reduce funding for the Federal Workforce Career Center by $240,000 so the total funding for the career center reflects a 12-month budget.
Department of Permitting Services
Review: The Council will review the more than $50.2 million recommended FY27 Operating Budget for the Department of Permitting Services (DPS), which represents an increase of nearly $1.8 million, or 3.7 percent, compared to the approved FY26 Operating Budget. The recommendation includes more than $1.5 million in compensation adjustments and $269,213 in programmatic and staffing additions, enhancements or other cost increases. For FY27, the County Executive is proposing to increase commercial permit fees by 25 percent and residential permit fees by 10 percent.
The ECON Committee voted for a flat fee increase of 15 percent for all permits. Additional committee recommendations are available in the Council staff report.
Review: The Council will review the $4.1 million recommended FY27 Operating Budget for the Economic Development Fund, which represents a decrease of $7,362, or less than one percent, compared to the approved FY26 Operating Budget. The change is due to a reduction in compensation adjustments and enhancements. The Economic Development Fund assists private employers who are located, plan to locate or substantially expand operations in the County. There are six active programs in the fund, including the Economic Development Fund Grant and Loan Program, Make Office Vacancy Extinct Program (MOVE), Biotechnology Investor Incentive Program, Cybersecurity Investment Incentive Tax Credit, Small Business Innovation Research Matching Grant Program and Microlending Program.
The ECON Committee concurred with the FY27 Operating Budget as recommended by the Executive.
Small Business Support Services Non-Departmental Account
Review: The Council will review the more than $2.9 million recommended FY27 Operating Budget for the Small Business Support Services NDA, which represents an increase of $645,489, or 28.2 percent, compared to the approved FY26 Operating Budget. The recommendation includes $222,853 in programmatic and staffing additions and enhancements. The recommendation also includes a $95,539 increase for compensation adjustments and other cost increases.
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The ECON Committee recommended shifting only the portion of funding that directly supports small business services to the reconciliation list, while leaving the transfer of two existing positions from the Incubator Programs NDA in place, since those positions are currently managed by the Business Center. The committee also noted that some of the shifted funds came from unrelated expiring contracts and discussed the County’s move toward a competitive process for delivering small business support.
Incubator Programs Non-Departmental Account
Review: The Council will review the more than $4.1 million recommended FY27 Operating Budget for the Incubator Programs NDA, which represents a decrease of $377,441, or 8.4 percent, compared to the approved FY26 Operating Budget. The recommendation includes the elimination of a program manager position from the Incubator Programs NDA and the shift of two program manager positions to the Small Business Support Services NDA for outreach and community liaison duties. The Incubators NDA provides facility lease payments, portfolio management services and program funding for the County’s Business Innovation Network facilities.
The ECON Committee supported the Executive’s plan to fund a third‑party manager for the County’s incubator network, while directing that $1.5 million of the FY26 appropriation be shifted into undesignated reserves to capture savings from delays in contracting. The committee supported the option to use $500,000 of the FY26 funds and appropriate $2 million in FY27 in order to increase resources and align with updated reserve projections.
Montgomery Coalition for Adult English Literacy Non-Departmental Account
Review: The Council will review the more than $2.6 million recommended FY27 Operating Budget for the Montgomery Coalition for Adult English Literacy NDA, which represents an increase of $64,685, or 2.5 percent, compared to the approved FY26 Operating Budget. The recommended increase supports a same services budget with a 2.5 percent inflationary adjustment. This NDA funding provides the Montgomery Coalition for Adult English Literacy with funding for grants to community organizations that provide programming for adult English classes.
The EC Committee recommended approving all FY27 Operating Budget changes as proposed by the County Executive.
KID Museum Non-Departmental Account
Review: The Council will review the nearly $2.5 million recommended FY27 Operating Budget for the KID Museum NDA, which represents an increase of $60,901, or 2.5 percent, compared to the approved FY26 Operating Budget. The change is due to a 2.5 percent inflationary adjustment for nonprofit providers. This NDA was created in FY22 to provide general operating support from the County for the KID Museum, which is a hands-on learning space that incorporates Science, Technology, Engineering and Mathematics (STEM), art, and culture with skills like creativity and critical thinking.
The EC Committee recommended maintaining a same services budget for the KID Museum NDA.
Climate Change Planning Non-Departmental Account
Review: The Council will review the recommended $88,344 for the Climate Change Planning NDA in the FY27 Operating Budget, which is level with the approved in the FY26 Operating Budget.
The TE Committee voted to approve of the County Executive’s recommended budget for the NDA.
Review: The Council will review the $139.5 million recommended FY27 Operating Budget for the Department of Finance, which represents an increase of more than $1.6 million, or one percent, compared to the approved FY26 Operating Budget. The mission of the Department of Finance is to prudently manage financial operations, recommend and implement sound fiscal policies, safeguard public assets, and encourage a safe environment on public property.
The GO Committee recommends approval of the Department of Finance FY27 Operating Budget as recommended by the Executive. The committee recommendation includes two reductions to the special tax district administration. Additional details are available in the Council staff report.
Office of the County Executive
Review: The Council will review the nearly $8.4 million recommended FY27 Operating Budget for the Office of the County Executive, which represents an increase of $442,904, or 5.6 percent, compared to the approved FY26 Operating Budget. The recommended changes to the FY27 Operating Budget for the department consist primarily of cost shifts between programs and contractual increases. The Office of the County Executive provides leadership to the community and administrative direction to the County’s departments and offices.
The GO Committee concurred with the FY27 Operating Budget changes to the department as proposed by the County Executive.
Review: The Council will review the $809,341 FY27 Operating Budget for the Board of Elections, which represents a more than 5.6 percent increase from the approved FY26 Operating Budget. The increase is comprised of compensation adjustments and other cost increases that reflect a continuation of current staffing and service levels. The Board of Elections is responsible for registering voters, conducting elections, assisting people seeking elective office with candidate filings and campaign fund reports, assisting citizens seeking to place questions on the ballot and preserving election data.
The GO Committee supported budget increases for election staffing, software and systems, overtime costs, and sample ballot expenses, and approved all other budget items as recommended by the County Executive.
Device Client Management Non-Departmental Account
Review: The Council will review the more than $19.1 million FY27 Operating Budget for the Device Client Management NDA, which represents a 6.4 percent increase from the approved FY26 Operating Budget. The program provides technology support for County employees and updates hardware and software as needed. All increases relate to ongoing pricing adjustments to multi-year vendor contracts.
The GO Committee concurred with the FY27 Operating Budget for the NDA as proposed by the County Executive.
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.
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