Montgomery revenues came in short of forecasts – causing, in part, an operating budget gap of $120 million, reports Bethesda Magazine. County Executive Ike Leggett has already proposed cuts to the County Council balance the $5.4 billion budget.
The shortfall results in part from the November distribution of local income tax revenues coming in “significantly below expectations.” Annual income tax revenue fell $64 million short, and total revenues fell short by $95 million. The rest of the shortfall results from the County’s general fund closing $25 million below expectations for fiscal 2017.
From Bethesda Magazine:
The County Council will have to approve a savings plan to address the shortfall.
Leggett said he expects to send a plan to the council that includes spending cuts and hiring freezes in about 10 days. He noted that the county has approved measures such as reducing its workforce and raising taxes in previous years to deal with declining revenues during and after the recession, which has left officials with few politically palatable options to address the revenue shortfall other than cuts.
“We’ll work our way through this quickly and adopt a savings plan that will address the shortfall and keep moving forward,” Council Vice President Hans Riemer said Monday.