Montgomery County Executive Proposes Changes to His FY 2010 and 2011 Budgets

As reported in the Gazette, Montgomery County Executive Isiah Leggett announced his second round of proposed budget adjustments to close a $1 billion deficit.   He is proposing a tax and fee increase to generate additional revenue.

Leggett is calling for a 100 percent increase in the county’s energy tax and an increase in a fee charged to the county’s cell phone users.

Under Leggett’s most recent proposal, the county’s fuel energy tax would double — resulting in about $8 more on average per month for residential users. The business community, which opposes the measure, says the increase could amount to hundreds of thousands of dollars annually for some businesses.

The increase will raise an additional $21.4 million in fiscal 2010 and $79.8 million in fiscal 2011, Leggett said.

Leggett’s proposal also calls for an increase of the county’s tax on cell phone users. The current rate is $2 per line per month, which appears on cell phone bills of county residents.

Leggett is recommending the tax be $3 per line per month — raising an additional $11.8 million in fiscal 2011.

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