Public hearing on proposed 0.1% county income tax increase draws wide public testimony

The Montgomery County Council held a public hearing on a proposal to raise the county income tax rate from 3.2% to 3.3%, drawing more than three hours of testimony from educators, school and labor leaders, business groups, nonprofit advocates and residents.

Rich Maddalino, chief administrative officer for the county government, told the council he was representing County Executive Mark Elrich and said the executive supports the council’s short‑term path announced that morning to fund Montgomery County Public Schools using one‑time resources for FY2025 and FY2026. Maddalino also said, however, that “the county executive still believes for the long term interest of the county and our fiscal stability, making this change in the income tax is still important.” He explained that prior changes to the income tax have sometimes been applied retroactively to January 1.

Testimony split along familiar lines. Education leaders, school principals, teachers and union representatives urged permanent revenue to avoid repeated annual funding crises. David Stein, president of the Montgomery County Education Association, said, “This announcement is welcome news,” thanking the council for the short‑term approach, but added that it “is only for one year” and will not resolve long‑standing funding shortfalls for special education, class sizes and staffing. Several teachers and principals described critical classroom impacts: Jeff Brown, principal of Roberto Clemente Middle School, described students with individual education programs who had rotating paraprofessionals and larger class sizes.

Unions and education advocates called for capturing the extra one‑tenth percent in local income tax authority granted by the state, saying the modest increase would provide stable funding for special education, mental‑health supports, and other services. Pia Morrison, president of SEIU Local 500, said a “modest and progressive tax adjustment is a responsible and moral investment in our county’s future,” emphasizing support staff who are paid too little to afford living in the county.

Local business groups and taxpayer advocates opposed the proposed increase. Angela Franco, president and CEO of the Montgomery County Chamber of Commerce, told the council, “The Montgomery County Chamber of Commerce and the business community strongly opposes increasing taxes.” Business speakers warned that higher taxes would harm competitiveness and small businesses already strained by federal job losses and rising assessments. Several speakers urged the council to find spending efficiencies or target spending reductions rather than raising revenue.

Community organizations and safety‑net providers also testified. The Maryland Vietnamese Mutual Association (MVMA) and other East County advocates urged support for the income tax increase and for renewal of county contracts that fund language‑access and direct services for limited‑English‑proficiency residents. Public‑health and dental‑care advocates warned that proposed cuts to East County dental services would harm low‑income residents.

Speakers on both sides noted the council president’s same‑day press conference with the Board of Education and superintendent describing a path to fund nearly all of the school system’s FY2026 request without an immediate tax increase; that announcement framed much of the testimony. The council repeatedly told speakers it would continue deliberations this week: the transcript records that council action on the income‑tax resolution was tentatively scheduled for 2025‑05‑14, and that materials for council consideration should be submitted by stated deadlines in the meeting packet.

Outcome: no formal vote was taken at the hearing; the item remained under consideration. The transcript records the hearing as a listening and record‑building exercise with council action tentatively scheduled for a later date.