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Committee holds RESJ work session; staff to expand demographic tracking across EDF programs
Summary
The committee heard presentations from Finance, MCEDC and OLO on racial equity and social justice (RESJ) measurement for EDF spending. Staff said some EDF subprograms collect voluntary demographic data, and OLO recommended integrating an RESJ lens and best practices; the committee requested legal briefings and follow-up reporting.
Montgomery County’s Economic Development Committee held a work session on July 6 to examine how racial equity and social justice (RESJ) considerations are measured and advanced across Economic Development Fund (EDF) programs.
Department of Finance presenters said several subprograms — including Move, SBIR/STTR matching and the Microloan Fund — already request voluntary demographic information (gender, race, ethnicity, veteran status) and that data collection began in earnest in April of the prior year for some programs. Dennis Hetman, fiscal manager, told the committee that the larger EDF GLP historically did not collect RESJ metrics but that staff are open to integrating demographic questions portfolio-wide as new program applications are formalized.
Nadia Khan (Department of Finance) said application language will be framed to explain why the questions are optional and how the county will use the data to promote equitable support. Khan also described plans for the Jobs Fund application and proposed adding open-ended business questions to surface barriers applicants face.
The Office of Legislative Oversight presented a RESJ policy handbook and a six-prompt framework for applying an RESJ lens: center community engagement, analyze historical and structural inequities, collect disaggregated data, align with best practices, estimate RESJ impacts and design implementation that advances equity. OLO staff said equitable economic development requires targeted interventions — for example, focusing on industries with more diverse ownership and investing in talent pipelines and capacity-building for underserved entrepreneurs.
Committee members emphasized three near-term priorities: (1) collect and use demographic data to evaluate who benefits from EDF spending; (2) coordinate outreach to ensure historically underrepresented businesses know about programs; and (3) request a legal briefing on what the county can require or incentivize given evolving court decisions related to race-aware policies. Council members also asked staff to return with analyses linking grant awards to job creation and whether award sizes differ by owner demographics.
MCEDC and county staff said outreach, incubators, workforce programs and an equity action plan are already part of ongoing efforts; they urged iterative use of data to make program changes. Committee members asked that the executive and OLO provide updated program metrics and recommended next steps ahead of the next budget cycle.
What happens next: Finance and MCEDC will refine application language, consider adding targeted program questions, and return with legal guidance and expanded reporting as the committee requested.
