Montgomery County Council Approves FY27 Budgets and Introduces Capital Projects Bills on May 21, 2026
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Montgomery County Council Session – May 21, 2026
The Montgomery County Council convened on Thursday, May 21, 2026, at 11:00 a.m. to take final action on the FY27 Capital Budget, FY27–32 Capital Improvements Program (CIP), and the FY27 Operating Budget, along with additional resolutions and bill introductions. Council President Natali Fani-González presided. The meeting adjourned at 11:10 a.m.
Consent Calendar
- Approval of Minutes: Approved without objection the minutes of the April 28, 2026 Council session.
- Consent Calendar (Items A–I): Approved by a vote of 11–0, including:
- Acknowledged receipt of three Inspector General publications (OIG #26-16, #26-17, #26-21).
- Introduced a resolution for Supplemental Appropriation #26-69 ($16,137,612 from Undesignated Fire Fund Reserves for Fire and Rescue Service personnel/operating costs; public hearing June 16, 2026).
- Introduced a resolution for Supplemental Appropriation #26-81 ($38,925,247 for DOT Snow Removal and $5,472,923 for DGS; from General Fund Undesignated Reserves; public hearing June 16, 2026).
- Introduced a resolution to amend the Comprehensive Water Supply and Sewerage Systems Plan (public hearing June 30, 2026).
- Introduced a resolution to amend the FY25–30 CIP and special appropriation for Residential/Rural Roads Resurfacing ($8,200,000 from GO Bonds; public hearing/action June 16, 2026).
- Introduced a resolution for Supplemental Appropriation #26-60 ($1,016,032 from State Grant for Crisis Services; public hearing/action June 9, 2026).
- Introduced a resolution for Supplemental Appropriation #26-66 ($2,121,756 from State Grant for Fire and Rescue Service; public hearing June 16, 2026).
- Introduced and adopted Resolution 20-1145, amending FY26 Operating Budget to designate entities for non-competitive contracts (Primary Care Coalition, Instacart, MD Dept. of Agriculture); vote 11–0.
- Introduced and adopted Resolution 20-1146, approving Executive Regulation #1-25 on Troubled Properties, as recommended by the Planning, Housing and Parks Committee; vote 11–0.
Discussion Items
- President’s Opening Remarks: Council President Fani-González noted this was the most challenging budget since the Great Recession. She highlighted that the Council held the line on the County Executive’s proposed property tax increase and on a proposed 3.3% income tax increase for all residents. She acknowledged Councilmember Kristin Mink’s alternative proposal to eliminate the Income Tax Offset Credit (ITAC), which failed to gain majority support. The President clarified the ITAC is a credit only available to owner-occupants who apply, and that revenues from its elimination will fund programs including MCPS.
- Recusal: Councilmember Andrew Friedson recused himself from voting on the Bethesda Green contract (listed in Section G of the County Government Operating Budget resolution) because he serves on its board.
Key Outcomes
- FY27 Capital Budget & FY27–32 CIP (Items 1–9): Adopted en bloc by a vote of 11–0 for County Government (Resolution 20-1123), MCPS (20-1124), Montgomery College (20-1125), M-NCPPC (20-1126), Revenue Authority (20-1127), Housing Opportunities Commission (20-1128), Aggregate Capital Budget for County GO Bonds – Spending Affordability Guidelines (20-1129), Aggregate Capital Budget for Park and Planning Bonds – Spending Affordability Guidelines (20-1130), and FY27 State Participation (20-1131).
- FY27 Operating Budget (Items 10–15 and 21): Adopted en bloc by a vote of 9–2 (Councilmembers Friedson and Luedtke opposed) for County Government (20-1132, with Friedson recused on the Bethesda Green contract), MCPS (20-1133), Montgomery College (20-1134), M-NCPPC (20-1135), Washington Suburban Transit Commission Administrative Expense (20-1136), Aggregate Operating Budget – Spending Affordability Guidelines (20-1137), and Property Tax Credit for Income Tax Offset (20-1143).
- Additional Resolutions (Items 16–20, 22): Adopted en bloc by a vote of 11–0 for WSSCWater FY27–32 CIP (20-1138), WSSCWater FY27 Capital and Operating Budgets (20-1139), County Cable Communications Plan (20-1140), FY27 Property Tax Rates (20-1141), Substitute Current Revenue for GO Bonds in FY27 (20-1142), and Substitute Current Revenue for GO Bonds in FY26 – Revised (20-1144).
Legislative Session – Day #14
- Expedited Bill 25-26: Introduced (draft #1) for a Capital Improvements – Special Project – Wheaton Arts and Cultural Center, sponsored by the Council President at the request of the County Executive. Public hearing/action scheduled for June 16, 2026 at 1:30 p.m.
- Expedited Bill 26-26: Introduced (draft #1) for a Capital Improvements – Special Project – North Bethesda Fire Station, sponsored by the Council President at the request of the County Executive. Public hearing/action scheduled for June 16, 2026 at 1:30 p.m.
Meeting Transcript
Good morning, everyone. Today is May 21st. My name is Natalie Fanny Gonzalez, and today is the day when we land the plane. I'm gonna say that. So I am Councilmember Natalie Fanny Gonzalez, and we're meeting to take the final action on the FY27 Capital Budget and F and oh, this is bone. FY27 uh budget in the FY27-32 capital improvement program and a few additional business that we have at the end of the day. Um I'm gonna start with uh Madame Claire. Do you have any announcements to share today? Good morning, thank you. There are two changes on today's agenda. Item 21, a resolution to set the amount of property tax credit for income tax offset, has been moved on the agenda to take place after item number 15. Also, item 23, a resolution authorizing the substitution of current revenue has been deleted from the agenda because it is a duplicate item. Thank you. Thank you very much. Now uh we have the minutes from April 28, 2026 council session. They have been circulated to the council for review. Are there any objections for approving these minutes? No, seeing none, these minutes are approved. Now we're gonna take council action to approve the we're gonna start with the uh the resolutions for the FY27 capital budget and FY27-32 capital improvement program. Um before I start calling on the votes. I just wanna state that once again this was a very challenging budget, very emotional too. Uh the most challenging since the Great Recession, I would say. Um, and there were many factors involved besides just the economic uh realities that we're facing in Montgomery County in the Washington DC region. Uh, but we also have a lot to be proud of and celebrate, even with all the challenges that we encounter. I think the fact that this council decided to help to hold the line on the property tax increases by the county executive was a big deal, and to also hold the line on the 3.3 income tax increase for everybody, regardless of how much money they make, was also a big deal. And I saw that part of my role as council president was to also encourage council members to offer you know reductions or ways to balance this challenging uh budget. I have recognized in the past quite a few colleagues, uh, but there's one more person that I also want to give um recognition, and that's council member um Kristen Mink, who offer you know a path forward, uh including one that did not include the ITAC, right? She did that. But at the end of the day, let's remember this is where 11 council members, and this is how the legislative uh process works. You need a majority to move your ideas forward uh for that particular proposal. Um it just didn't happen. We, the majority of the council decided to eliminate the ITAC and use the money for other important things. Um, but I just want to recognize that she hustled and uh and that she did her part to to put that idea forward. Um I do also want to take the opportunity, um, since we're talking about the ITAC to understand that the ITOC is a tax credit that is only available for owners of properties who live in that property. It doesn't, tenants don't get that benefit. Um that benefit is usually received by people who apply. You must apply to get it. And it's usually folks who have an accountant who know about these things. And the other tax property credits that we have in the county, like the homestead, they're still in place. Nobody's touching them. This is only for the ITAC. And I and we're using the money to fund important programs, including uh MCPS. That was the that was the last vote that we had here. Uh the needs are huge, and we had to be very strategic on how we use the funds that we have. So I feel that I had to say that one more time before we start taking action. And with that, we're gonna start. Um I need a motion to move uh the first items from one to nine in a block in a block as a group. And uh I need a motion. So move moved by council member Kate Stewart, second by council member Meryland Balcon. All those in favor, please raise your hand.
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