The preliminary budget agreement makes historic investments in education, holds the line on property taxes with a $692 property tax credit for homeowners, expands essential services for residents, and funds collective bargaining agreements and inflationary increases for nonprofit service providers.
The Montgomery County Council took straw votes to unanimously approve the County’s $7.1 billion fiscal 2025 Operating Budget and the $5.84 billion fiscal 25-30 Capital Improvements Program (CIP) to fund school construction, infrastructure improvements, and community projects. The fiscal 2025 Operating Budget represents a five percent increase compared to the 2024 Operating Budget.
The preliminary budget agreement provides funding to increase ongoing investments in education, public safety, health and human services, and affordable housing. It also includes resources to combat climate change and boost economic growth.
In addition, the preliminary accord provides more competitive salaries for Montgomery County employees and nonprofit providers. It honors the County’s long-term commitments to retired employees with $59.1 million provided for OPEB. It also reinforces the County’s financial stewardship by funding its reserves at 10.8 percent.
“Putting together a fiscally sound budget that meets the needs of Montgomery County’s 1.1 million residents is the ultimate balancing act,” said Council President Andrew Friedson. “Like residents across Montgomery County who create household budgets, the Council had to make difficult choices with finite resources, especially as we sought to increase funding for public education. With unprecedented community engagement throughout this deliberative process, the Council has produced a budget that meets today’s needs and makes strategic investments for Montgomery County’s future so we can strengthen our social safety net and maintain our high quality of life.”
Click here to view highlights of the operating budget, which includes $3.3 billion for Montgomery County Public Schools (MCPS), an increase of more than $157 million over fiscal 2024 and more than $150 million above the State’s Maintenance of Effort requirements.
The Council also held the line on property taxes. The fiscal 2025 weighted tax rate remains static at $1.0255 per $100 of assessed value and includes $0.0470 per $100 dedicated to MCPS. Additionally, homeowners will continue to receive a $692 property tax credit that provides for a degree of progressivity since lower-valued properties will receive a more significant reduction in property taxes.
“We are adding significant additional resources for Montgomery County Public Schools by funding 99.2 percent of the Board of Education’s request without raising taxes or increasing the County’s debt while maintaining our reserve levels above 10.8 percent and providing the necessary flexibility to respond to potential fiscal emergencies in the months ahead,” said Council President Friedson.
While County Executive Marc Elrich noted that the Council adopted “99.5” of his proposed budget, he also expressed concerns with some of the Council’s funding decisions.
The fiscal 25-30 CIP includes more than $5.94 billion in capital funding to address the County’s most urgent building needs, including more than $1.85 billion for Montgomery County Public Schools infrastructure.
The Council will take final action on the capital and operating budgets on May 23.