OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Montgomery County Council FY27 Budget Worksession – May 7, 2026

County Council & Committees — Thursday, May 7, 2026
BodyMontgomery County, Maryland
SessionCounty Council & Committees
DateThursday, May 7, 2026
StatusFILED
Video Record
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0:02

Good morning, everyone.

0:03

Today's Thursday, May 7th.

0:06

The council is meeting again today to continue the review of the FY27 operating budget and capital improvements program.

0:15

Councilmember sales is attending today's this week's meetings virtually.

0:20

The first item on the agenda is the budget consent calendar for FY27 operating budget and FY27-32 capitalist program.

0:29

Is there a motion to approve the budget consent calendar?

0:33

Move by Council President Balcon, second by Council Member Jawondo.

0:36

All those in favor, please raise your hand.

0:45

Okay.

0:45

Juke can say that she's optional.

0:47

Oh, she raised your hand.

0:48

Is she okay?

0:50

Okay, I draw you.

0:51

All right, fine.

0:52

And uh with everybody present, we're missing um council member Glass was on his way here.

0:59

Um now we will discuss individual department budgets, and we're gonna start with FY27 operating budget and FY2732 capital improvements program.

1:12

Uh the first one is Department of Health and Human Services, Publi Health Services.

1:16

I asked um Councilmember Don Luki to give the report as just here, and the chair of the committee is virtual.

1:25

So councilmember Luki, please take it away.

1:28

Sure.

1:28

Thank you, Madam President.

1:29

And um, since we're going to go through a number of HHS to uh uh that's a that's a a minimizing of the term, a number of HHS items today.

1:40

Um, some which were solo HHS committee items, some which were joint.

1:45

So when we get to the joint hearings, we will turn them over to our chairs for ENC and PHP who led those discussions.

1:53

Um I think is very aware of how important all of our HHS services are at this time to our residents.

2:02

I think every one of us is getting a steady stream of calls and emails and um and in-person conversations uh related to the various services that are provided by our health and department of health and human services and um and their contractors.

2:22

And they those are the services that address our most basic human needs.

2:27

Um protecting our communities most vulnerable, our children, our elderly, um, families.

2:33

We offer through DHHS over 155 programs and deliver services at more than 20 different locations throughout the county.

2:42

Um, in addition to the core services that are provided by the department, they're also responsible for budget and fiscal administration, contract management, facilities management, grant acquisition, human resources, information systems, and performance management.

2:59

Um I want to thank our team from DHHS who is already seated up here in the front, as well as those who are assembled here because I know you all will be switching seats at different times as we work through things.

3:11

Um, but each and every one of you are dedicated public servants, and we truly appreciate everything that you are doing to help us navigate through these challenging times.

3:21

Um with respect to the overall budget picture for the agency, the county executive recommended an increase of 18,913,060 or 3.39% over the DHHS FY26 approved operating budget.

3:41

Um of that increase, 30 million six hundred six thousand two hundred ninety-four dollars is in the county general fund, three hundred and seventy-eight thousand seven forty in opioid abatement funds, and there is a decrease of twelve million seventy-one thousand nine hundred and seventy-four in the grant fund.

4:01

The county executive recommended an increase of 50.15 FTEs, an increase of 2.4%.

4:09

The executive's recommendation includes $43,728,543 in programmatic and staffing enhancements.

4:19

The recommendation also includes a uh $12,590,842 in programming and staffing reductions.

4:28

The recommendation includes an $8,938,376 increase for FY27 compensation adjustments and $2,011,453 to annualize FY26 compensation increases.

4:46

Um with respect to our operating budget equity tool analysis, DHHS received an OBIT score of six out of eleven, reflecting a sustained commitment across all areas of the GAR framework, including advancing equitable outcomes for county residents in addition to DHHS staff and contractors.

5:06

For logistical purposes, during our committee work sessions, we worked through the work of DHHS thematically, which is not the way we will end up doing it here at Full Council.

5:19

Here it is organized by how our budget books are organized for purposes of how we'll run through things today.

5:25

And then the last piece before we turn to our public health services is I wanted to provide a little bit of an overview since the department has undergone some restructuring.

5:38

And in order we we may have heard things coming up in different parts of the budget in prior years than where they are going to be relevant today because of this restructuring.

5:48

So as a part of DHHS's uh efforts to to reconfigure their operations, the Office of Community Affairs, including our equity and language access, was moved to the director's office within administration and support services.

6:05

We established the Office of Social Services as its own service area.

6:11

The child welfare services and office of eligibility and support services from children, youth, and families was relocated.

6:20

Um and established the social services, constituent services, and quality assurance.

6:25

Within the services to end and prevent homelessness, we established five primary divisions, administration, homeless services, housing stabilization services, health care for the homeless, and supportive housing to align program areas with staff structure and program delivery.

6:42

In the public health service, they established the community and population health as a new program within the public health service, including key initiatives that were previously housed in other parts of the administration, including Healthy Montgomery, Healthy Promo Health Promotion and Prevention, and the Mobile Health Clinic.

7:01

For children, youth, and families, there are three new program areas, community action, CYF Special Projects and Initiatives, and the Lighthouse.

7:10

And they renamed Positive Youth Development Program Area and the Community Youth Violence Prevention and Intervention Program.

7:18

Child care subsidies and Head Start have been shifted to early childhood services within children, youth and families division.

7:26

And then in behavioral health and crisis services, we have two new program areas, prevention and harm reduction services, school-based mental health and related services, including education support, therapeutic mentoring, linkages to learning, and high school wellness center services that were all previously in children, youth, and families, now in behavioral health and crisis services.

7:49

Aging and disability experienced minimal changes in this reorganization, but the primary adjustment involved the transfer of the adult medical daycare program provider supplement from aging and disability assessment and continuing care management services to aging and disabilities community provider support, which aligns with our developmental disability and adult medical daycare supplemental funding with a single program area, improving consistency, administrative clarity, and oversight of resources directed to community-based providers.

8:24

And I'll note uh before turning it over to our lovely central staff team for HHS that they conducted a base budget review for aging and disability, which can be found on circles 10 to 23 of your packet for uh today's work session on aging and disability.

8:41

With that, I'd like to turn it over to Ms.

8:43

Clemens Johnson and Miss Um Hernandez Rodriguez.

8:48

Uh good morning and thank you so much.

8:50

Um, not too much to add.

8:51

I do want to thank our DHHS and Office of Management and Budget team with the volume of requests and responsiveness.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis███████████████████████████27%
Public Health████████████████████20%
Public Education█████████9%
Homelessness█████████9%
Technology and Innovation██████6%
Public Engagement█████5%
Procedural████4%
Elder Abuse Prevention███3%
Historic Preservation███3%
Summary of Proceedings

Montgomery County Council Worksession: FY27 Operating Budget and FY27-32 CIP – May 7, 2026

The Montgomery County Council convened at 9:30 a.m. and 1:30 p.m. on Thursday, May 7, 2026, to continue its review of the FY27 Operating Budget and FY27-32 Capital Improvements Program (CIP). The morning session covered the Budget Consent Calendar and several Department of Health and Human Services (DHHS) budgets, and the afternoon session addressed the remaining DHHS service areas, early care and education accounts, the Office of Human Rights, food systems resilience, inflationary adjustments for nonprofit providers, community grants, and cost sharing. Councilmember Laurie-Anne Sayles participated virtually. All worksession items were approved via straw votes, most unanimously (11-0), with two votes recorded as 10-0 due to temporary absences.

Consent Calendar

  • Approved the FY27 Budget Consent Calendar (items A–W) by motion, carried without objection. Councilmember Evan Glass was temporarily absent. Items included budgets for Alcohol Beverage Services, Board of Appeals, Charter Review Commission, Conference Center, Office of the County Council, Debt Service, Department of Environmental Protection (General Fund and Water Quality Protection Fund), FY27 Water Quality Protection Charge, Office of Grants Management, Homeowners Association Road Maintenance Reimbursement, Office of Intergovernmental Relations, Leases, Office of Management and Budget, several Non-Departmental Accounts, Police Accountability Board, Public Election Fund, Office of Racial Equity and Social Justice, Rockville Parking, Takoma Park Library, Telecommunications, Weather Response, and Office of Zoning and Administrative Hearings.

Public Comments & Testimony

  • No public testimony was listed on the agenda or read into the record during this worksession. Nonprofit representatives were present in the audience during the Inflationary Adjustment discussion, and Councilmembers acknowledged their presence and advocacy.

Discussion Items

DHHS – Public Health Services (Item 2)

  • Councilmember Dawn Luedtke reviewed HHS Committee recommendations. Approved as amended (11-0).
  • En bloc motion: With Councilmember Kristin Mink moving and Councilmember Andrew Friedson seconding, the Council unanimously supported moving three items off the Reconciliation List and into the FY27 Operating Budget: American Diversity Group ($202,600), George B. Thomas Learning Academy ($722,579), and BlackRock Center for the Arts ($125,000). Councilmembers expressed support for these programs, noting they were previously funded and included in a County Executive amendment.
  • MoCo Pride Center: Multiple Councilmembers (Stewart, Balcombe, Friedson, Glass, Jawando, Mink) expressed strong support for restoring additional funding for the MoCo Pride Center, noting it received $500,000 in the prior year plus an additional $500,000 supplemental from the Council. Dr. Ashford explained the Executive’s recommended $500,000 is consistent with last year’s base, with the extra $500,000 having been a Council addition. The item remains on the Reconciliation List.
  • Community Connect portal: Later discussion revealed 191 applications in 2024 and 1,041 in 2025; total investment is projected to reach $8.1 million by the end of FY26, with an additional $2.5 million requested. Councilmember Jawando said he would not support the continued development tranche without a clearer ownership and scope review. Councilmember Mink criticized the portal’s usability and cost. Councilmember Sayles defended it as a vital access point in seven languages.

DHHS – Administration and Support (Item 3)

  • Approved as recommended by HHS Committee (11-0). The committee restored $92,638 for tutoring services for youth and senior wellness services for the Vietnamese community, placing it on the Reconciliation List.

DHHS – Aging and Disability Services (Item 4)

  • Approved as amended (11-0), excluding the $10,000 for the Commission on Aging’s Annual Public Forum pending a legal review. Later, after the County Attorney confirmed legal authority, the Council voted unanimously to place that $10,000 on the Reconciliation List.
  • The HHS Committee also added $60,000 (two tranches of $30,000) to the Reconciliation List for the launch of Villages in underserved areas. DHHS expressed support for expansion but noted sustainability challenges.
  • Councilmember Friedson raised concerns about the Community Companions contract serving the developmental disability community. Dr. McGhee said the reduction was due to years of underspending and no growth in participants. Friedson urged collaboration with the Department of Recreation.

DHHS – Behavioral Health and Crisis Services (Item 5)

  • Approved as amended (11-0), including a CIP technical adjustment for the Diversion Center Project Description Form.
  • Diversion Center/Behavioral Health Crisis Stabilization Center: $3,104,903 was placed on the Reconciliation List. Chief Monica Martin stated that without funding, the renovated facility would not operate in the fall, the State license would not be renewed in December, and three years of foundational work would be undone. President Fani-González noted this is a legally required item to be listed in a special column.
  • The committee also supported a 2.5% inflationary adjustment for residential rehabilitation providers (e.g., Cornerstone Montgomery, Sheppard Pratt), adding an item to the Reconciliation List to partially offset a $458,422 reduction.
  • Twinbrook Linkages to Learning: Councilmember Sidney Katz requested, and the joint committee unanimously approved, adding $217,753 (adjusted from $200,000) to the Reconciliation List for one full-time therapist and one family care manager at Twinbrook Elementary School. MCPS offered several space options. Katz noted Twinbrook has a 70.6% FARMS rate and over 41% emerging multilingual learners.

DHHS – Services to End and Prevent Homelessness (Item 6)

  • Approved as amended (11-0).
  • Outreach Budget Gap: The Council unanimously supported adding $438,909 in General Funds to the Reconciliation List to sustain existing unhoused outreach contracts (EveryMind, Bethesda Cares, City of Gaithersburg, Pathway to Housing, and Shepherd’s Table). Councilmember Luedtke clarified this is not an expansion, but continuation.
  • Rental Assistance (HIF): Approved as recommended by the joint HHS/PHP Committees. Councilmember Friedson explained the joint committee unanimously declined to shift $1.4 million from the HIF contingency because of federal funding uncertainties.
  • Nebel Street Shelter cleaning: Chief Christine Hong said roughly $195,000 in COVID-19 funds had covered cleaning services; that funding is gone, and the shelter serves 200–300 men year-round. Councilmember Stewart pressed to continue conversations.
  • Federal cuts: Stewart and Hong discussed the upcoming NOFO, which could include a 40% cut to permanent housing, potentially displacing about 350 households. Hong said about 800 people are in HUD-funded permanent housing.

DHHS – Social Services Office (Item 7)

  • Approved as recommended (11-0). The committee approved a $800,968 item converting seven contractor positions to merit positions to handle increased Medicaid eligibility workloads.

DHHS – Children, Youth, and Family Services (Item 8)

  • Approved as recommended by the joint EC/HHS Committee (11-0).
  • Items on the Reconciliation List include $160,000 for two MCPS CPS clearance contractors, $151,610 for a rapid response hotline, and continuation of George B. Thomas Saturday School (already moved to base).
  • After-school programming reduction: A $133,523 reduction for Carroll Avenue/Quebec Terrace after-school programming was approved after DHHS and MCPS provided a memo confirming a transition plan to Excel Beyond the Bell and MCPS High Dosage Tutoring. Councilmember Jawando said the memo addressed committee concerns; Councilmember Stewart offered to assist with transition.

Early Care and Education NDA (Item 9)

  • Approved as recommended (11-0). The joint committee added a total of $1,000,000 to the Reconciliation List for the Working Parents Assistance Program (WPAP): $500,000 from the Executive to move 23 children off the State waitlist, plus an additional $500,000 to move 23 more, serving 46 children total. President Fani-González expressed strong support, emphasizing that education funding is not only MCPS.

Children’s Opportunity Alliance Fund NDA (Item 10)

  • Approved as recommended (11-0). The joint committee added $125,000 to the Reconciliation List for a state-level early care and education workforce position housed within the Community of Agencies (COA). Councilmembers Luedtke and Mink stressed the importance of state-level advocacy and dedicated funding for ECE.

Office of Human Rights (Item 11)

  • Approved as amended (11-0). The Council unanimously supported adding $110,000 to the Reconciliation List for the Emory Grove Displaced Residents Task Force, based on a County Executive April 21 memorandum. Director James Stowe discussed the history of Emory Grove and ongoing fair housing work with the National Fair Housing Alliance. Councilmember Glass asked about rising hate; Stowe said the office is focusing on awareness, allyship, and programming.

Office of Food Systems Resilience (Item 12)

  • Approved as recommended (11-0). The budget includes reductions to the retail food access program ($150,000) and food as medicine grant program ($230,779) as proposed by the County Executive, plus a technical adjustment and a 2.5% inflationary adjustment for nonprofit contracts.

Inflationary Adjustment for all Non-Profit Providers (Item 13)

  • Approved as amended (11-0). The Council unanimously supported a motion by Councilmember Jawando to place a 7.5% inflationary adjustment (in ten 0.5% tranches) on the Reconciliation List. The County Executive had recommended 2.5%; the President argued for at least 4%. Councilmember Jawando proposed 7.5%, acknowledging it would require budget reductions and an income tax increase on high earners. Councilmember Friedson called the current contracting model “broken,” citing cash-flow problems and the need for lines of credit. Councilmember Mink warned of a large gap between priority items ($232 million) and available revenue ($80 million). Each 0.5% tranche is approximately $881,000; funding all ten would add $8.8 million.

Community Grants NDA (Item 14)

  • Approved as recommended (10-0; Councilmember Shebra Evans temporarily absent). The GO Committee recommended keeping legacy grants for FY27 and adding $1.5 million for nonprofit federal resiliency grants. Director Rafael Murphy noted the NDA is only about 8% of total county grants; OGM expects to issue $62 million in grants this year.

Cost Sharing: MCG (Item 15)

  • Approved as recommended (11-0). The GO Committee added $200,000 to the Reconciliation List for Charles E. Smith Life Communities “Reimagining Ring House” because the County Executive removed the funding after the NOFO had been issued. Council staff clarified that with the addition, FY27 CIP cost-sharing expenditures would be $5.7 million; without it, $5.5 million (including $3 million for capital grants and $500,000 for CASA).

Key Outcomes

  • Consent Calendar approved with no objections.
  • All DHHS worksession budgets and related NDAs approved via straw votes, with several items placed on the Reconciliation List for final determination.
  • En bloc motion approved: American Diversity Group, George B. Thomas Learning Academy, and BlackRock Center for the Arts moved into the FY27 Operating Budget base.
  • $10,000 for Commission on Aging’s Annual Public Forum placed on Reconciliation List after legal authority confirmed.
  • $110,000 for Emory Grove Displaced Residents Task Force placed on Reconciliation List.
  • 7.5% inflationary adjustment for nonprofit providers (ten 0.5% tranches) placed on Reconciliation List.
  • $200,000 for Charles E. Smith “Reimagining Ring House” added to Reconciliation List.
  • The meeting adjourned at 3:05 p.m.

Meeting Transcript

Good morning, everyone. Today's Thursday, May 7th. The council is meeting again today to continue the review of the FY27 operating budget and capital improvements program. Councilmember sales is attending today's this week's meetings virtually. The first item on the agenda is the budget consent calendar for FY27 operating budget and FY27-32 capitalist program. Is there a motion to approve the budget consent calendar? Move by Council President Balcon, second by Council Member Jawondo. All those in favor, please raise your hand. Okay. Juke can say that she's optional. Oh, she raised your hand. Is she okay? Okay, I draw you. All right, fine. And uh with everybody present, we're missing um council member Glass was on his way here. Um now we will discuss individual department budgets, and we're gonna start with FY27 operating budget and FY2732 capital improvements program. Uh the first one is Department of Health and Human Services, Publi Health Services. I asked um Councilmember Don Luki to give the report as just here, and the chair of the committee is virtual. So councilmember Luki, please take it away. Sure. Thank you, Madam President. And um, since we're going to go through a number of HHS to uh uh that's a that's a a minimizing of the term, a number of HHS items today. Um, some which were solo HHS committee items, some which were joint. So when we get to the joint hearings, we will turn them over to our chairs for ENC and PHP who led those discussions. Um I think is very aware of how important all of our HHS services are at this time to our residents. I think every one of us is getting a steady stream of calls and emails and um and in-person conversations uh related to the various services that are provided by our health and department of health and human services and um and their contractors. And they those are the services that address our most basic human needs. Um protecting our communities most vulnerable, our children, our elderly, um, families. We offer through DHHS over 155 programs and deliver services at more than 20 different locations throughout the county. Um, in addition to the core services that are provided by the department, they're also responsible for budget and fiscal administration, contract management, facilities management, grant acquisition, human resources, information systems, and performance management. Um I want to thank our team from DHHS who is already seated up here in the front, as well as those who are assembled here because I know you all will be switching seats at different times as we work through things. Um, but each and every one of you are dedicated public servants, and we truly appreciate everything that you are doing to help us navigate through these challenging times. Um with respect to the overall budget picture for the agency, the county executive recommended an increase of 18,913,060 or 3.39% over the DHHS FY26 approved operating budget. Um of that increase, 30 million six hundred six thousand two hundred ninety-four dollars is in the county general fund, three hundred and seventy-eight thousand seven forty in opioid abatement funds, and there is a decrease of twelve million seventy-one thousand nine hundred and seventy-four in the grant fund. The county executive recommended an increase of 50.15 FTEs, an increase of 2.4%. The executive's recommendation includes $43,728,543 in programmatic and staffing enhancements. The recommendation also includes a uh $12,590,842 in programming and staffing reductions. The recommendation includes an $8,938,376 increase for FY27 compensation adjustments and $2,011,453 to annualize FY26 compensation increases. Um with respect to our operating budget equity tool analysis, DHHS received an OBIT score of six out of eleven, reflecting a sustained commitment across all areas of the GAR framework, including advancing equitable outcomes for county residents in addition to DHHS staff and contractors. For logistical purposes, during our committee work sessions, we worked through the work of DHHS thematically, which is not the way we will end up doing it here at Full Council. Here it is organized by how our budget books are organized for purposes of how we'll run through things today. And then the last piece before we turn to our public health services is I wanted to provide a little bit of an overview since the department has undergone some restructuring. And in order we we may have heard things coming up in different parts of the budget in prior years than where they are going to be relevant today because of this restructuring. So as a part of DHHS's uh efforts to to reconfigure their operations, the Office of Community Affairs, including our equity and language access, was moved to the director's office within administration and support services. We established the Office of Social Services as its own service area. The child welfare services and office of eligibility and support services from children, youth, and families was relocated. Um and established the social services, constituent services, and quality assurance. Within the services to end and prevent homelessness, we established five primary divisions, administration, homeless services, housing stabilization services, health care for the homeless, and supportive housing to align program areas with staff structure and program delivery. In the public health service, they established the community and population health as a new program within the public health service, including key initiatives that were previously housed in other parts of the administration, including Healthy Montgomery, Healthy Promo Health Promotion and Prevention, and the Mobile Health Clinic. For children, youth, and families, there are three new program areas, community action, CYF Special Projects and Initiatives, and the Lighthouse.

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