Montgomery County Council FY27 Operating Budget Worksession – May 13, 2026

The Montgomery County Council held a worksession/action on the FY27 Operating Budget on May 13, 2026, from 9:35 a.m. to 2:11 p.m., with a luncheon recess. The Council considered resolutions setting fees, income tax rates, and approved a reconciliation list totaling $101.4 million to balance the budget.

Consent Calendar

• Resolutions 20-1116 through 20-1120: Unanimously adopted (11-0), approving the FY27 County 9-1-1 Fee, Transportation Fees, Water Quality Protection Charge, Executive Regulation #2-26 on Systems Benefit Charges, and Solid Waste Service Charges.

Public Comments & Testimony

• No members of the public testified during this worksession.

Discussion Items

• FY27 Community Use of Public Facilities Fees (Resolution 20-1115): Staff reported a 7.5% fee increase for all permit holder categories for MCPS facilities and the Silver Spring Civic Building. Councilmember Jawando moved adoption; Councilmember Friedson voted no. Adopted 10-1.
• FY27 County Income Tax Rates (Resolution 20-1121): Extensive debate on a progressive income tax structure. President Fani-González noted the current flat 3.20% rate and described the proposal as reducing taxes for lower incomes. Councilmember Stewart stated 75% of county filers earn under $150,000 and would receive a tax break. Councilmember Jawando argued the structure taxes households earning $150,000 the same marginal rate as those earning $5 million, opposing any increase on incomes below $500,000. Councilmember Mink submitted an alternative proposal with a three-cent property tax increase and different progressive brackets but did not bring it to a vote. Deputy Director Smith clarified that an individual earning exactly $150,000 would receive a $450 tax break on 2027 taxes; income must reach $600,000 to pay more overall. Adopted 6-5 (Councilmembers Stewart, Balcombe, Fani-González, Evans, Katz, Luedtke in favor; Glass, Friedson, Jawando, Sayles, Mink opposed).
• FY27 Operating Budget Revenues and Expenditures (Item 8): Staff presented three priority blocks. Priority Block 1 ($8.9M) included grant replacements, state requirements, and capital-to-operating expenses – approved without objection. Priority Block 2 ($82.7M) contained 29 items including four tranches of MCPS funding. A motion to remove items 49-53 was withdrawn after discussion about nursing home inspections (Councilmember Sayles highlighted a state obligation the county assumed July 1, 2025), and Councilmember Evans withdrew her motion. Councilmember Friedson sought scenarios for delaying the nursing home start date. Priority Block 2 approved without objection.

The Council then considered reduction packages. President Fani-González submitted reductions including a $25M drawdown from MCPS OPEB (one-time use) and a $1.1M cable fund balance adjustment. Councilmember Jawando proposed Vision Zero and climate reductions but did not move them. Councilmember Mink proposed a property tax increase and $2M in lapse savings, which led to a request for staff to explore $2M in additional laps across departments by the afternoon. After debate, the Council adopted (8-3) President Fani-González’s reduction package with a friendly amendment restoring $600,000 to Kid Museum and adding two $200,000 tranches to the reconciliation list.

Following the recess, staff presented Priority Block 3 ($5.05M), funding Circuit Court grant positions, HHS programs (Montgomery Cares, adult shelter, outreach, MoCo Pride Center), and M-NCPPC administrative and park funds. Approved unanimously (11-0).

Key Outcomes

• Resolutions Adopted: 20-1115 (10-1), 20-1116 through 20-1120 (11-0), 20-1121 (6-5).
• Priority Blocks: Blocks 1 and 2 approved without objection; Block 3 approved unanimously.
• Straw Vote on FY27 Operating Budget: Approved 11-0.
• Lapse Funding Inquiry: Council asked staff to work with OMB to identify $2 million in additional laps across departments; report expected before the afternoon session.
• Next Steps: The Council will reconvene on May 14, 2026, at 9:30 a.m. to vote on WSSC water and park planning, followed by final votes on the CIP reconciliation and operating budget wrap-up.