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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Montgomery County Council Meeting on FY27 Budget and WSSC Charge - May 15, 2026

County Council & Committees — Friday, May 15, 2026

BodyMontgomery County, Maryland

SessionCounty Council & Committees

DateFriday, May 15, 2026

StatusFILED

Video Record

0:00 / 2:34:13

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:04

Good morning everyone.

0:05

Today is May 15.

0:07

My name is Natalie Fanny Gonzalez and the County Council President.

0:11

We are convening today to grab up or work on the FY27 operating budget and capital improvements program.

0:19

Council Member Don Luki is attending virtually.

0:22

If you can please make sure that we can see her.

0:25

I'll appreciate it in one of the screens.

0:29

There you go.

0:30

Perfect.

0:31

Everybody's here.

0:37

This has been a very emotional budget for many reasons, and we'll get through that later on.

0:45

I told my colleagues, I am not gonna hold a vote unless every single person here is ready to vote.

0:53

Okay.

0:54

Yesterday, there were changes, and we ended up not holding the session because I needed everybody here to be sure that they were ready to vote.

1:06

That's my job as the council president to ensure that every single person of the county council feels that they have information they need to make a good judgment based on what we have in front of us.

1:19

So changes happen, and at the very last minute, I had to postpone the meeting.

1:24

And I know many of you were here, and I love that you were here yesterday.

1:28

I love that you're here today, because this is how Montgomery County, this is Montgomery County in action.

1:33

So I I do apologize that people took a day off to be here and expected something and didn't happen.

1:40

But I also need you to understand the process that we have here, and I did put Friday as a backup, which I didn't think we were gonna use it, we ended up using it.

1:51

Um but I understand the frustration that people had because they were expecting something to happen yesterday.

1:57

It did not happen, but it's best to have patience and wait until every single person is ready to make such an important and significant vote.

2:07

So I wanted to say that to you.

2:09

Believe me, I wish everything was done yesterday.

2:13

Folks were not ready, and it's okay.

2:15

We have time.

2:17

So we're here today and we're gonna move forward.

2:20

With that, the second thing that I want to say, again, this is a very emotional budget for many reasons.

2:26

Because of what's happening at the federal level, because of the proposal that we have from the county executive that we had to come come completely change because there's so many moving pieces around that affect so many departments across the county.

2:43

And many of us, we have we're 11 people with very different views.

2:48

And getting to a consensus of eight, it's not a consensus of six, it's a consensus of eight.

2:54

It's hard, it's challenging.

2:56

And my job is to bring that consensus and give people time.

3:00

So I'm gonna please ask you as we start this session right now to not clap, to know boo, to not interrupt because it's not it doesn't make things easier.

3:14

If you like something, you can go like this.

3:17

And I'm being very consistent with the way I have run sessions since I I became council president.

3:23

If you have followed any of the public hearings, you know well that I have not allowed any boos or clapping or any of that, because it's just it's it's disruptive, especially understanding that we have different views here on the council.

3:38

So please let's let's work together and not interrupt the process.

3:45

So I trust that you can please work with me on that.

3:49

With that, the first item on the agenda is one that is exciting for me.

3:57

And it's the introduction and action on a resolution to approve the WSSC water and system development charge.

4:05

Is there a motion to suspend Rule 7D of a rules of product of procedure to allow for the introduction and action of this item?

4:12

So moved.

4:13

Move by Council Member Katz.

4:14

Can I get a second?

4:15

Second by Council Vice President Balcon.

4:18

Those in favor, please raise your hand.

4:22

Any pass unanimously.

4:27

Now, is there a motion to approve WSE Water System Development Charge?

4:32

Move by Council uh member Evan Glass, second by council member Sydney Katz.

4:37

All those in favor, please raise your hand.

4:41

Any pass unanimously.

4:46

Item two on today's agenda is a work session on the FY27 operating budget and FY27-32 capital improvements program.

5:00

The first item on the agenda is the capital budget grab app and CIP reconciliation.

5:05

We're gonna take strove, but I'm gonna ask for I'm looking at you.

5:11

Yeah.

5:11

Right now.

5:12

Before we start with the council uh report, is there a motion?

5:19

Yes, Madam President.

5:20

Um thank you.

Discussion Breakdown — Share of Meeting

Fiscal Sustainability█████████████████████████████████████████████68%

Engineering And Infrastructure████████12%

Procedural██████9%

Public Education██3%

Education█2%

Homelessness█2%

Budget Equity Analysis█1%

Public Safety█1%

Youth Programs█1%

Summary of Proceedings

Montgomery County Council Meeting on FY27 Budget and WSSC Charge - May 15, 2026

The Montgomery County Council met on May 15, 2026, to approve the WSSC Water System Development Charge and conduct work sessions on the FY27 Operating Budget and FY27-32 Capital Improvements Program (CIP). After extensive deliberation and multiple proposals, the Council passed a $6.9 billion operating budget and a $6.3 billion capital budget, with key votes on transferring $36 million from the CIP to the operating budget to support Montgomery County Public Schools (MCPS), and finalizing reconciliation lists. The meeting adjourned at 12:41 p.m.

Consent Calendar

Resolution 20-1122 – WSSC Water System Development Charge: Introduced and adopted unanimously after suspending Rule 7(d) to allow immediate action, consistent with bi-county action on 5/14/26.

Discussion Items

Capital Budget Wrap-Up and CIP Reconciliation: Staff presented an initial reconciliation addressing a $400 million general obligation bond gap. Key adjustments included deferring major school projects (four elementary school projects pushed beyond six years) and reducing funding for systemic projects like HVAC and roof replacement. The initial reconciliation assumed $44 million from the Income Tax Offset Credit (ITOC) for capital projects.
Motion to Transfer $36 Million from CIP to Operating Budget: Councilmember Jawando moved to transfer $36 million from the CIP (reducing ITOC allocation to $8 million) to fund two additional tranches for MCPS in the operating budget, reducing MCPS cuts. After debate, the motion passed 7-4 (Glass, Friedson, Stewart, and Luedtke voting against).
Impact of Transfer: Staff noted that reducing CIP funding would lower state aid by an estimated $14.7 million due to the 50-50 match for HVAC and roof projects, and exacerbate the structural deficit to $293 million in FY28.
Operating Budget Wrap-Up and Reconciliation: Staff summarized final decisions, including net resource and expenditure reductions, and the addition of $36 million from the CIP. The operating budget balanced at approximately $6.9 billion with reserves maintained at proposed levels. A unanimous motion moved two MCPS tranches from the reconciliation list to funded items.
Final Straw Votes: The Council approved the FY27-32 CIP as amended (9-2, Friedson and Luedtke opposed) and the FY27 Operating Budget as amended (9-2, Friedson and Luedtke opposed). Official minutes incorrectly refer to the operating budget as FY26, but the adopted budget is for FY27.

Key Outcomes

Adopted Resolution 20-1122 (WSSC charge) unanimously.
Straw vote approval of FY27-32 CIP as amended: 9 in favor, 2 against (Friedson, Luedtke).
Straw vote approval of FY27 Operating Budget as amended: 9 in favor, 2 against (Friedson, Luedtke).
Motion to transfer $36 million from CIP to operating budget passed 7-4.
Unanimous motion to move two MCPS tranches off the reconciliation list into funded items.
Next step: Final vote on resolutions on May 21, 2026.

Meeting Transcript

Good morning everyone. Today is May 15. My name is Natalie Fanny Gonzalez and the County Council President. We are convening today to grab up or work on the FY27 operating budget and capital improvements program. Council Member Don Luki is attending virtually. If you can please make sure that we can see her. I'll appreciate it in one of the screens. There you go. Perfect. Everybody's here. This has been a very emotional budget for many reasons, and we'll get through that later on. I told my colleagues, I am not gonna hold a vote unless every single person here is ready to vote. Okay. Yesterday, there were changes, and we ended up not holding the session because I needed everybody here to be sure that they were ready to vote. That's my job as the council president to ensure that every single person of the county council feels that they have information they need to make a good judgment based on what we have in front of us. So changes happen, and at the very last minute, I had to postpone the meeting. And I know many of you were here, and I love that you were here yesterday. I love that you're here today, because this is how Montgomery County, this is Montgomery County in action. So I I do apologize that people took a day off to be here and expected something and didn't happen. But I also need you to understand the process that we have here, and I did put Friday as a backup, which I didn't think we were gonna use it, we ended up using it. Um but I understand the frustration that people had because they were expecting something to happen yesterday. It did not happen, but it's best to have patience and wait until every single person is ready to make such an important and significant vote. So I wanted to say that to you. Believe me, I wish everything was done yesterday. Folks were not ready, and it's okay. We have time. So we're here today and we're gonna move forward. With that, the second thing that I want to say, again, this is a very emotional budget for many reasons. Because of what's happening at the federal level, because of the proposal that we have from the county executive that we had to come come completely change because there's so many moving pieces around that affect so many departments across the county. And many of us, we have we're 11 people with very different views. And getting to a consensus of eight, it's not a consensus of six, it's a consensus of eight. It's hard, it's challenging. And my job is to bring that consensus and give people time. So I'm gonna please ask you as we start this session right now to not clap, to know boo, to not interrupt because it's not it doesn't make things easier. If you like something, you can go like this. And I'm being very consistent with the way I have run sessions since I I became council president. If you have followed any of the public hearings, you know well that I have not allowed any boos or clapping or any of that, because it's just it's it's disruptive, especially understanding that we have different views here on the council. So please let's let's work together and not interrupt the process. So I trust that you can please work with me on that. With that, the first item on the agenda is one that is exciting for me. And it's the introduction and action on a resolution to approve the WSSC water and system development charge. Is there a motion to suspend Rule 7D of a rules of product of procedure to allow for the introduction and action of this item? So moved. Move by Council Member Katz. Can I get a second? Second by Council Vice President Balcon. Those in favor, please raise your hand. Any pass unanimously. Now, is there a motion to approve WSE Water System Development Charge? Move by Council uh member Evan Glass, second by council member Sydney Katz.

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