Montgomery County Council opens FY27 budget debate as staff outline proposed tax increases and use of reserves

Council staff on April 7 provided a detailed briefing on the county executive's FY27 recommended operating budget and the trade-offs the County Council will face over the next month.

The presentation, led by council analysts and budget staff, said the executive's plan would increase the tax-supported operating budget to just over $7 billion, including a proposed 6.3¢ supplemental property tax for Montgomery County Public Schools and a proposed income tax increase from 3.2% to 3.3%. Staff also reported the executive's plan relies on approximately $191,100,000 in one-time reserves and includes recommended pay and benefit increases that drive much of the year-over-year growth.

"The executive recommends a 6.3¢ property tax increase for MCPS," staff said in the presentation, and added that the income tax change would produce about $24 million in FY27 with fuller effects in later years. The staff analysis also flagged a…