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Council adds 10 tranches to seek larger inflationary boost for nonprofit contracts
Summary
After a lengthy debate, the Montgomery County Council voted unanimously to add ten 0.5% tranches (totaling 7.5% if fully funded) to the FY27 reconciliation list so the council can pursue a larger inflationary adjustment for nonprofit contracts than the executive proposed.
The Montgomery County Council voted unanimously to place ten 0.5% “tranches” on the FY27 reconciliation list that would collectively raise the executive’s recommended 2.5% inflationary adjustment for nonprofit contracts to 7.5 if the full package is funded.
County staff told the council the executive’s 2.5% proposal equals $4,406,450 across county government, with roughly $4.3 million tax‑supported funding. Staff also noted each additional 0.5% equals about $881,000, and that a full 7.5% would require roughly $8 million in new resources.
“Two and a half percent does not come close,” Councilmember Will Giordano said in urging a larger supplement, citing recent federal contract terminations and local nonprofit surveys showing drops in private and corporate giving. Giordano moved to add ten 0.5% tranches to the reconciliation list; the motion was seconded and supported across the dais as a necessary first step to secure more funding.
Several council members framed the vote as procedural: adding tranches to the reconciliation list preserves the council’s ability to fund a larger increase during final budget deliberations but does not guarantee all tranches will be approved. “If we don't take this vote, it won't go on the list and it couldn't come off,” Giordano said.
Supporters described nonprofits as essential county partners that perform services the government otherwise could not deliver and argued the county must respond to shrinking federal and philanthropic support. Skeptics and budget‑conservative members warned that the reconciliation list is competitive and that added tranches will have to compete with other priorities, including MCPS budget requests and capital items.
The council’s action recorded all ten tranches on the reconciliation list by unanimous vote; final funding will depend on later reconciliation decisions and available revenues.
The reconciliation list placement is the most recent procedural step; council leaders said final decisions will be made during the reconciliation process in the coming days.
