Montgomery County Taxpayers League

The Voice of Taxpayers of Montgomery County, Maryland

County’s Dark Economic Prospects

According to new report from the County Council’s Office of Legislative Oversight (OLO) the county faces a difficult fiscal path ahead.  Basically, income will not be enough to cover expenses.  About 88% of the county’s programs are financed by income taxes and property taxes.  Income taxes can’t be raised because the rates are at the maximum level allowed by State law.  Property taxes can be raised above the tax-cap only with the approval of all nine Council members.

“Across the four County-funded agencies, employee compensation costs (consisting of salaries and wages as well as benefits) comprise 80% of all agency operating expenditures.

“The approved Fiscal Plan projects annual average revenue growth of 2.7% through FY24. This revenue growth will be insufficient to cover projected compensation costs if wages, social security, and group insurance grow at the same rates and retirement costs are held constant.

“A budget trade-off exists costs increases for existing positions compete for finite resources against the cost of adding new positions.”

 

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