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Council to consider executive amendment increasing county match for Working Families Income Supplement
Summary
The Government Operations and Fiscal Policy committee unanimously approved a $3.18 million NDA increase for the Working Families Income Supplement; the county executive transmitted an amendment to raise the county match of the state EITC from 56% to 65%, adding $5.03 million to FY26 costs. The committee deferred a final decision to full council.
The Government Operations and Fiscal Policy committee reported to the full Montgomery County Council that it unanimously approved an increase of $3,179,321 to the Working Families Income Supplement (WFIS) non-departmental account (NDA). The full council heard a separate county-executive amendment transmitted April 24 that would raise the county match of the state's refundable earned-income tax credit (EITC) from 56% to 65%, adding $5,031,000 to FY26 costs.
Why it matters: The WFIS supplements the state refundable EITC to help low-income working families. Eligibility for the county supplement is tied to qualifying for the federal EITC; staff noted that in tax year 2024 the federal eligibility threshold for a single filer with no children was an adjusted gross income of $18,591.
Details from staff: County law currently provides a 100% match mechanism but the county has funded the WFIS at 56% since FY24. The state match is currently 50% of the EITC (45% for refunds). The staff packet stated the average EITC for an eligible Montgomery County filer was $567.42; under the executive's proposed 65% county match, the average county supplement would be $658.88—an average increase of $91.46 per recipient. Staff also reported that every 1 percentage-point change in the county match is roughly equivalent to $559,000 in FY26 cost.
Committee action and next steps: The committee unanimously approved the $3.18 million NDA increase and deferred consideration of the executive’s 65% match amendment to the full council. The council will consider the executive amendment during its ongoing FY26 budget work sessions and reconciliation process.
Context: The county expanded eligibility in recent years (including filing with an ITIN) and amended county law in 2021 so residents who qualified under the state expansion could receive the county supplement. The council discussion framed the amendment as a way to increase progressivity in the county tax structure and to increase benefits to eligible low-income working families.
Ending: The full council will take up the executive amendment during FY26 reconciliation; committee materials note the public policy tradeoffs and provide the per-recipient and per-percentage-point cost estimates council members requested.
