Economic Development Committee Meeting – April 22, 2026
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Economic Development Committee Meeting – April 22, 2026
The Economic Development Committee met on April 22, 2026, from 9:32 a.m. to 11:55 a.m. to review the FY27 Operating Budget and FY27-32 Capital Improvements Program for three agenda items: the UM3 Institute for Health Computing, the Economic Development Fund, and Urban Districts. The committee heard from legislative analysts, county executive staff, and directors of the Urban Districts, and made several amendments before recommending approval.
UM3 Institute for Health Computing
- The County Executive recommended the same $5 million operating support for the Institute for Health Computing (IHC) under the UM3 Non-Departmental Account, as stipulated in the MOU through FY29.
- IHC Co-Executive Directors Adam Porter and Brad Marin presented updates: the IHC now supports over 135 personnel (39 living in Montgomery County), has submitted 45 federal grants in the last quarter, received a major $12.5 million award, and has seven innovation applications. Collaborations with the FDA and AstraZeneca were highlighted.
- Councilmember Sayles requested the MOU with AstraZeneca and asked about monetization of IHC expertise; the directors explained that revenue models are based on licensing and fees from partners.
- All committee members expressed strong support. Councilmember Balcombe called it an obligation under the MOU. Councilmember Glass noted the importance of public investment given federal disinvestment in science.
- Outcome: Recommended approval of the FY27 Operating Budget as submitted.
Economic Development Fund
- The County Executive recommended $4.17 million for the Economic Development Fund (EDF), a decrease of about $7,000 due to compensation adjustments, with no programmatic changes.
- Discussion focused on the MOVE program, which has exhausted its current appropriation and has a backlog of applications. The committee agreed to hold a worksession in the fall to review MOVE’s policy and potential modifications.
- For the SBIR/STTR program, the program has sunset; a reauthorization bill has legal issues. Councilmember Balcombe advocated for maintaining funding, noting five pending applications worth $200,000. The committee decided not to adopt staff-recommended reductions for SBIR/STTR or the biotech investor incentive, following explanations from Finance that those funds are obligated or dependent on reauthorization.
- Councilmember Sayles pressed for equitable tracking of demographic and outcome data across all EDF programs. Staff confirmed that data is being collected and will be presented in the fall.
- Outcome: Recommended approval of the FY27 Operating Budget as submitted, with a commitment to revisit MOVE and SBIR/STTR policy in the fall.
Urban Districts
- The County Executive recommended an increase of $463,276 (3.51%) for the four Urban Districts (Bethesda, Silver Spring, Wheaton, Friendship Heights), including a shift in funding from parking lot districts to the general fund. Specific reductions were proposed for each district.
- Councilmembers expressed frustration over recent administrative changes in Wheaton and lack of communication with the community. Balcombe and Fani-González called for a long-term reimagining of the Urban District funding model, noting inequities compared to areas like Germantown.
- A key item was the Bethesda Urban Partnership (BUP) request for $149,335 for compensation and same-services increases, which the Executive had not recommended. After discussion, the committee voted to add that amount to the Reconciliation List.
- For Wheaton, the committee recategorized the two one-time reductions ($35,293 for lighting upgrades and $30,000 for tree replacement) as ongoing reductions to align with other districts.
- The Executive’s reductions for Silver Spring (e.g., $16,000 for landscape/stormwater management) were accepted, though Councilmember Stewart noted concerns about post-construction recovery from the Purple Line.
- Friendship Heights Alliance reported success with a different funding model and requested an additional $135,000 for cleaning and security cameras, which was noted for further consideration.
- Outcome: Recommended approval of the FY27 Operating Budget for Urban Districts as amended: (1) add $149,335 on the Reconciliation List for BUP compensation; (2) recategorize Wheaton reductions as ongoing; all other reductions as recommended.
Key Outcomes
- UM3 Institute for Health Computing: Recommended approval of FY27 budget as submitted.
- Economic Development Fund: Recommended approval as submitted; no reductions taken; fall worksession scheduled on MOVE and SBIR/STTR policy.
- Urban Districts: Recommended approval as amended with $149,335 added for BUP and Wheaton reductions made ongoing. Councilmember Fani-González requested a follow-up meeting in fall on Urban District funding structures.
Meeting Transcript
Good morning, everyone. Council President Natalie Fanny Gonzalez, also chair of this committee. Thank you for being here today. We have three items today, revising the FY27 operating budget and FY27-32 Capital Improvement Improvements Program. The first item is UM3 Institute for Health Computing Non-Departmental Account. Thank you for all your work and the partnership that we have had with all of you. We are going to kick it off with Council staff to go through the packet and then I'm going to turn it to the County Executive's team and then the two of you. Okay. Go ahead. Perfect. Good morning, members of the Economic Development Committee. Happy Wednesday. So the first item is the Institute for Health Computing. You can see the County Executive recommendation on the first page. This is the same $5 million that it's been for now three years, I believe, or four years. This is stipulated in the MOU to support operating expenses at the Institute for five years through FY29. They are located in North Bethesda. They do cutting edge research in uh with advanced computing and health. They can speak to it much better than I can. There's a description of their institute here and the most recent quarterly report as well is attached, I believe, to the packet. As a budget issue, the only point to bring up was just bringing up raising the issue of the fiscal sustainability. I think in the past we've brought up the point that you know funding will expire in FY29. And so they've had a plan to achieve fiscal sustainability on their own through their own model, you know, pursuing outside grants and developing their own business. Um they've at a high level explained what that could look like, but I think this year they're saying because of the change in the federal landscape for federal funding, they may have had to pivot uh or shift their planning around that. So I think you may want an update on on that, but it's not an irrelevant issue for this year, uh, but may maybe may you know require a consideration in the future. So other than that, the only decision is to approve the council county executive's recommendation. Okay. Thank you for that. Can uh Mr. Ken Harmanespa. Thank you. Uh Council President Fanning Gonzalez and members of the Econ Committee and visiting council members. I I just want to just say real briefly before we hand it to the University of Maryland system team that we we're very pleased with the progress partnership and engagement of the University, the IH3, the three being University of Maryland College Park, University of Maryland Baltimore, and the University of Maryland Medical System. They're they're the way they've come together, the way they built the team, they've uh engaged in projects that matter not just to public health, but also to the local economy. And importantly, engagement with our business community with with our our the companies here to help advance the work that they're doing and become part of the local ecosystem. Um we're as staff point out, this is the one of the pieces of the MOU that uh that we uh agreed to with the University of Maryland several years ago. Um, and we're just pleased that it's continuing to grow and uh looking forward to the day next administration when when the um uh they'll will take a permanent um place in the the North Bethesda Metro development. And with that, uh I thank you for your consideration. And thank you. We love the partnership that we have with you, and it makes Montgomery County stronger for sure. Um if you can please uh share any updates. Um and also we understand what's happening with the federal government um and how painful it has been for everyone, not just folks um pushing projects that are vital for the community, but also workers who have been illegally fired. Um anything that you can share now. Um I think for what we have today as a committee, I feel that we're pretty comfortable, but also anything that you can share regarding the future, uh what you're predicting, understanding very well that we live in an environment that is very unstable. Um, and that and I don't think pretty sure things will get worse, not better. Um as you all know, um, I look forward to having you back probably in the fall. Um but anything that you can share now will be will be great. Thank you. Oh, good morning, and thank you, uh Chair Fanny Gonzalez, excuse me, and Council members Balcom, Glass, and uh Council uh Councilmember Stewart. Uh my name is Adam Porter, and I'm here along with my co-executive director at the University of Maryland Institute for Health Computing, Dr.
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