Thanks for joining me again,
I want to wish all mothers and every family celebrating “Mom” this Sunday, a very Happy Mother’s Day weekend. Mothers are the backbones of every family. They provide nurturing, support, and inspiration. We are forever grateful for their guidance, love, and presence in our lives. And to all those who have lost their own mother over the years, I hope this day brings back wonderful memories of cherished moments.
This past week was packed with news, events, and significant milestones, which are in the newsletter this week. Today, I was on WAMU’s The Politics Hour and talked about many of these issues. Please take a listen to that interview here. You can listen to me in the second half of today’s show.
FY27 Budget Deliberations Update – The County Council’s Tax Increase Proposal
I want to begin by thanking the County Council for its unanimous decision to fully fund the contracts my administration negotiated with our employee groups. I am very pleased that all 11 members agreed that our dedicated County employees deserve a pay increase in line with the rising cost of living in our region.
As you know, the budget I submitted in March also included a property tax increase dedicated solely to our school system. I knew this was a lot to ask of our residents, but my 70 years in this community (as a student, parent, grandparent, teacher, elected official, and taxpayer) have taught me that this community values education and is willing to pay more to give our children the best opportunity for a great life.
Earlier this week, the County Council voted to set aside my proposed broad-based property tax rate increase that would have raised the rate on all properties by 6.3 cents. Instead, on Friday, the Council voted to eliminate the County’s largest property tax credit for homeowners — the Income Tax Offset Credit (ITOC) — which provides every homeowner with a $692 reduction in their property tax bill. My property tax proposal was estimated to bring in $164.4 million in additional revenues just for our schools. The Council’s tax proposal brings in around $137 million more for general purposes.
While some may characterize this action as a rejection of all of my tax increases, they are simply proposing a different type of tax increase: one I fear is far more regressive.
As you can see on the chart above, this move to eliminate the ITOC hits different homeowners in an unequal and unfair manner. And, it allows commercial properties like shopping centers and office buildings to escape with no increase in their bills.
As illustrated in the chart, with the ITOC being eliminated, every homeowner’s tax bill will increase by $692. If the home is assessed at $650,000 (which is the average value of a home in the County), that homeowner will pay the equivalent of a 10.6 cent tax increase. If the home is assessed at $800,000, that homeowner will pay the equivalent of an 8.7 cent tax increase. If the home is assessed at $2 million, that homeowner will only receive the equivalent of a 3.5 cent tax increase.
Once again, I proposed a 6.3-cent property tax increase solely dedicated to MCPS funding, while preserving the ITOC. For the 88% of County homeowners with properties valued at less than $1.09 million, the cost of eliminating the ITOC exceeds the tax increase I recommended. Again, while some are characterizing the Council’s action as avoiding a tax increase, for the vast majority of homeowners, it amounts to a larger bill.
And I cannot stress this enough – the Council’s action only raises taxes on homeowners. Commercial properties are untouched under the Council plan — homeowners absorb the entire cost. I should not be surprised. This is the same Council that has had no problem passing million-dollar tax breaks for developers and lowering the property tax burden on some developers per the 2024-2028 Growth and Infrastructure policy. And since Maryland corporations don’t pay a County income tax, there is no offsetting corporate revenue to the County. For several years, legislation in Annapolis would have allowed us to create a separate commercial property tax rate to fund infrastructure — but it has not passed. I suggested a new idea to differentiate our commercial and property taxes, but it does not appear to have support from the County Council.
To make our fiscal matters worse, a second tax proposal was passed to restructure the local income tax. The Council plan would reduce income taxes for all taxpayers earning under $600,000, but this tax cut will not offset the property tax increase for any homeowner in the county.
Just as the Council rejected the Council President’s initial call to reduce employee compensation, councilmembers should reject this income tax plan. Let’s set aside the fact that the plan will only receive its first public hearing on Tuesday; the focus right now should be on meeting as many of the MCPS’ requests as possible.
I respect the desire many on the Council have to provide relief to struggling families. That is why I included an increase in our Working Families Income Supplement (WFIS), a program that puts meaningful dollars into the pockets of working parents with dependent children for food and housing. It is more targeted than an income tax cut, because larger families get more under the WFIS, and I urge those who share my goal of helping the most vulnerable to return to this proposal because, as it stands, we are in a lose-lose situation. The homeowner pays more, and the County collects less revenue overall.
Recognizing Purple Line Milestone with Governor Moore’s Administration
On Thursday, I joined Maryland Gov. Wes Moore, transportation officials, and members of our state delegation in Silver Spring as part of the governor’s “Delivering for Maryland” tour to mark the installation of the final section of Purple Line track and the beginning of the project’s testing phase.
This has been a very long road. The idea for the Purple Line dates back decades, and the project has faced delays, funding challenges, the pandemic, and the loss of the original contractor. Reaching this milestone is significant for Montgomery County, Prince George’s County, and Maryland.
The Purple Line will eventually provide another transportation option connecting residents to Metro, MARC, Ride On, and other transit systems, while helping improve mobility throughout this corridor. Transportation infrastructure matters because it impacts everything from economic development to housing to access to jobs and schools.
The event was also an opportunity to highlight several ways in which the State and Montgomery County continue to work together during a difficult economic period. That includes support for displaced federal workers, investments in transportation and affordable housing, and continued efforts to grow our life sciences and technology sectors.
As part of the Governor’s tour, he also stopped at Max’s Best Ice Cream in Bethesda. I was pleased to be invited along to this very special small business that was created by Cory Alexander to give his son Max, who has Down syndrome, and anyone with developmental disabilities an opportunity to work.
During the visit, the governor observed the work of “Buddy” employees and met high school interns from Walt Whitman High School’s Learning for Independence program. Governor Moore also participated in a friendly competition against Buddy employees to make the shop’s popular “Over the Rainbow” extreme milkshake and was presented with the newly launched, custom Maryland-themed sundae named “Give Me Moore Old Bay.”
This is the type of business that epitomizes the kind of people, business owners, and culture of compassion that exists in our County. I am glad that the Governor got to experience it. And I hope you experience it as well by considering visiting Max’s Best Ice Cream the next time you are in Bethesda.
Gov. Moore has consistently shown up for Montgomery County and backed projects and investments that matter to our residents. Whether it’s helping move the Purple Line toward completion, supporting efforts to connect displaced federal workers with new opportunities, investing in education and transportation, or helping grow our life sciences economy, his administration has been a strong partner for Montgomery County during a challenging time for our region. We appreciate that partnership and look forward to continuing to work together to deliver for Maryland residents.
Honoring Teachers
This was Teacher Appreciation Week, an opportunity to thank everyone who helps contribute to a child’s education. One of many groups to honor and recognize throughout the month of May.
When I became a teacher, I was around 40. It started as a temporary job, but when I realized the great need as children face the impacts of poverty, I became dedicated to it.
I thought my role would be in a high school, but I realized that educators could make the greatest difference in elementary schools. Education sets the stage for everything else. If kids don’t learn the fundamentals of reading and writing by the time they leave 5th grade, they are likely not to get it later.
I spent 17 years in the classroom. When I went back to visit Rolling Terrace Elementary School a few years ago, I ran into a former student who was now a parent, dropping off her own kids that day. It shows that schools are a fundamental part of our community. They all deserve our best attention and support. That’s why I have continued to recommend record investment in education year after year. Still, more help is needed.
I was struck by the comments made by Montgomery County Educators Association President David Stein this week at Council. He said during a proclamation ceremony recognizing educators:
“On behalf of the 14,000 educators that I work with and I represent, we appreciate the words, and we appreciate the proclamation because those 14,000 educators who are right now, even as we speak, in the classrooms, in their buildings, work sites, in students’ homes, they are – they are miracle workers. They are performing miracles every day. They are meeting students with all sorts of challenges. They are nurturing them. They are loving them. They are inspiring them. They are educating them.
Even with the conditions that we face: with underfunded schools, with buildings that are really falling apart in many cases, they’re doing the work. And in our nation’s environment, in which teachers are under attack, in which unions are under attack…. It’s in that environment that our teachers are, and our educators, every single day are performing miracles. And so, we really do appreciate the words that you’re saying. But I have to say that for a lot of my members, for most of my members, these words are – they see these words as hollow.”
I encourage you to watch his full remarks. If you are going to say you were with our students and our teachers, and that you invested in our future workforce, then invest in it.
And while we often focus so much on teachers in our schools, we can’t forget the thousands of other MCPS employees who support educators. Their work, their jobs, and their importance to the children, teachers, principals, and families they serve are equally important.
MCPS staff is represented by our local SEIU 500 and its president, Pia Morrison. She joined my weekly media briefing to discuss the importance of not cutting deeply into the programs and services MCPS provides.
SelectUSA Summit in Maryland
Speaking of partnership, I also joined the governor, the Maryland Department of Commerce, and economic development leaders from across Maryland at the SelectUSA Investment Summit at National Harbor. This conference brought together international companies and investors from around the world, looking to expand and create jobs in the United States. It provides Maryland with an important opportunity to compete for those investments.
Montgomery County remains one of the leading destinations in the country for international businesses, especially in life sciences, biotechnology, quantum computing, cybersecurity, and advanced technology. We have one of the most highly educated workforces in the nation, proximity to federal agencies and research institutions, and a diverse international community that makes companies from around the world feel welcome here.
That work does not happen alone. The Moore-Miller administration and the Maryland Department of Commerce have helped attract international investment and strengthen Maryland’s position globally. Whether it’s working together on trade missions, supporting companies looking to expand here, or coordinating efforts around workforce development and infrastructure, the State has been a strong partner in helping us compete economically.
At a time when we are facing uncertainty from federal layoffs and economic instability, attracting international businesses and investment is more important than ever. These companies create jobs, strengthen our tax base, support small businesses, and help ensure that Montgomery County and Maryland remain economically competitive for the future.
Completion of the Nation’s Largest Microgrid to Bring Clean Energy to Our Transit System
Last week, we cut the ribbon on the newest microgrid in our County at our Equipment Maintenance Transit Operations Center, also known as the EMTOC. This is one of two principal locations where the transit fleet is maintained and from which it operates.
Our transit fleet has traditionally been the County’s largest fuel consumer, with this facility alone consuming 1.76 million gallons of fuel every year, and our buses producing over 4,000 metric tons of carbon emissions yearly. But times are changing. In response to our aggressive climate goals, our Department of General Services has employed innovative strategies, such as microgrids and energy-resilient facilities across the County.
The EMTOC microgrid is the most recent and outstanding example of this commitment. It is now the largest renewable-energy-powered bus depot in the United States. By 2035, this site will support 200 zero-emission buses, including hydrogen fuel-cell electric buses that match the extended range we need for our longest routes, which were previously served only by carbon-emitting buses. Combined with our Brookville facility, we will have the infrastructure to power 335 zero-emission buses, helping us build one of the largest green fleets in the region.
The new 6.8-megawatt microgrid is designed to operate in “island mode,” meaning that even if the main power grid goes down, our transit system continues to run. In Phase II of this project, we will host the first on-site green hydrogen production facility on the East Coast, using a two-megawatt electrolyzer to produce hydrogen for hydrogen electric buses, some of which will be delivered later this year.
The impact is massive. This project alone reduces more than 4,000 metric tons of CO2 annually. That’s the equivalent of taking 780 homes off the grid. These investments support the expansion of our Bus Rapid Transit network and create high-tech career opportunities for underserved communities.
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This achievement was made possible through powerful partnerships with AlphaStruxure and Pepco, as well as nearly $15 million in federal funding from the Federal Transit Administration and $1.6 million from the Maryland Energy Administration. I got to thank Lt. Governor Aruna Miller personally during her appearance at the ceremony.
The County has also installed microgrids at key locations, including the 6th district police station, emergency communications center, public safety headquarters, and the animal shelter, to ensure these areas remain powered even in an emergency.
Silver Branch Brewery and Mosaic Pizza Coming to Wheaton
There’s good economic development news to share impacting Wheaton. Silver Branch Brewery and Mosaic Cuisine are planning to open a new location in the community, and I think it is another positive sign of the continued momentum and investment we are seeing in Wheaton.
The community is one of the most diverse and vibrant small-business communities in our region. Wheaton has incredible food, arts, culture, and entrepreneurs who have continued investing in this community through some very difficult years, including the pandemic and the economic uncertainty we are still dealing with today.
Projects and businesses like this matter because they help activate our downtowns, create jobs, bring more foot traffic to surrounding businesses, and give residents more places to gather and spend time locally. And in this case, we are talking about locally owned businesses that have already been successful in Montgomery County, choosing to invest further in Wheaton’s future.
The County has made major investments in Wheaton over the last several years, including the redevelopment of the town center and public spaces, as well as transportation, housing, and economic development efforts. We are continuing to see the benefits of those investments as more businesses recognize the opportunity and energy that exists in this community.
I want to thank the owners of Silver Branch and our Department of General Services staff for making this deal happen. We are excited to welcome them to the community in the summer of 2027 and look forward to seeing the positive impact they will have on the area.
Honoring Our Fallen Officers
May is National Law Enforcement Appreciation Month, and I want to recognize the families of fallen officers from our community who were honored this week. This is always an emotional ceremony that allows us to pay tribute to those who made the ultimate sacrifice in the name of public safety. These losses impact generations of families in Montgomery County. We are grateful and humbled by what these families are willing to give to keep Montgomery County safe.
National Nurses Week
We also marked the start of National Nurses Week. There are nurses in several departments in the County, and their work is critical to helping our community improve their health and access services such as important immunizations.
We see the aging of our nursing workforce, with more than a quarter of registered nurses aged 55 or older. That aligns with data showing a 4% decrease in the number of nursing associate degrees earned across Maryland between 2018 and 2022. Nurses are a vital part of our health care system, and we need to encourage more people to join the ranks. I’m thankful that the Universities at Shady Grove and Montgomery College offer training programs and that graduates contribute to the local health care workforce.
National Correctional Officers and Employees Week
This week, correctional professionals were in the spotlight, too. On Friday morning, I helped honor about 100 outstanding officers, staff members, and volunteers who were nominated by their peers as standouts within our Department of Correction and Rehabilitation. The department continues to show how rehabilitation is a core mission of its work. I want to thank all our professionals who serve our community, doing so with dignity and respect for the work they do.
Asian American Pacific Islander Month Begins
Last Sunday, we began Asian American Pacific Islander Heritage Month with an event that brought together many of our community partners. Led by the Asian American Health Initiative, I’m glad I was able to attend and see how our Asian American communities work together to raise awareness and share important community information that enriches lives and makes people safer.
Older Americans Month
May is also Older Adults Month and a good time to remember that AARP recently recognized Montgomery County as the #2 place for older adults to live among large U.S. communities. Our Department of Health and Human Services works with many groups and organizations across the County to make sure seniors are seen and heard. The designation was established in 1963 to honor the legacies and contributions of older Americans. We use it as a reminder of our commitment to being an age-friendly community. You can find many resources on the Aging and Disability Services website, or call them directly at 240-777-3000. The Commission on Aging will host a free public policy forum on social connections and healthy aging on Thursday, May 28, in Silver Spring.
Mental Health Awareness Month
The pandemic made many people realize the role stress and anxiety can have on mental health. Reducing stress can improve your mental and overall health. In times of crisis, help is available. The Montgomery County Crisis Center can be reached 24/7 by calling 240-777-4000. The 988 Suicide and Crisis line is easy to reach by calling or texting 988.
Building Safety Month
Last week, our very popular free residential deck inspection program helped launch Building Safety Month. Our Department of Permitting Services (DPS) will hold a Residential Permitting Open House on Wednesday, May 20, from 4:30 to 8 p.m. at the Isiah Leggett Executive Office Building in Rockville. Building safety resources are also available through the DPS offices at the Wheaton Headquarters building from 7:30 to 4 each weekday.
Go MoCo Month
Throughout May, Visit Montgomery will highlight food, shopping, and attractions unique to Maryland’s Cultural Capital to celebrate Go Moco Month.
Travel has a huge impact, supporting 15 million jobs nationwide. At a time when many people are searching for ways to celebrate the County’s and nation’s 250th anniversary, the County is a great place to stay and explore many historical places.
In Montgomery County, there are many ways to be entertained, learn about history, or have fun together as a family. I encourage you to download the Adventure Planner App and discover new adventures across the County.
National Small Business Week
Finally, National Small Business Week ends on Saturday. During my administration, I’ve worked to make it easier to do business in Montgomery County. I want to highlight the work of the Montgomery County Business Center team, which empowers entrepreneurs and businesses with vital resources. They also provide expert guidance for growth and relocation. I also want to give credit to our Department of Permitting Services for making the permitting process easier and more transparent. A lion’s share of the more than 36 million small businesses in the U.S. are small businesses.
As always, my appreciation for all of you,
Marc Elrich
County Executive
Read the original article at mcgov