Montgomery County Expects $135.4 Million Budget Shortfall in FY 2013

As reported recently, Montgomery County is expecting a budget shortfall of $135.4 million in FY 2013.  The Washington Examiner outlines some assumptions used by the county as it prepares its budget for the upcoming fiscal year.

…county doesn’t raise salaries for any employees across county government, public schools, Montgomery College or the Maryland-National Capital Park and Planning Commission, officials said Tuesday.

…the data assumes that the county’s increased energy tax will revert to its fiscal 2010 level. In May 2010, the council approved a two-year increase to the tax — 59.6 percent for businesses and 155.5 percent for residents. The increase is scheduled to expire in June, but extending it would bring in an additional $113.3 million.

In light of threats by credit-rating agency Moody’s to downgrade the county’s 40-year AAA bond rating, the county also plans to nearly triple its contribution to the fund supporting retiree health care, contributing $146.6 million in fiscal 2013, up from $49.8 million this year.

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