Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Nonprofit Funding topic
No spam. Unsubscribe anytime.
Council approves 3% inflationary increase for nonprofit contracts amid rising need
Summary
The Montgomery County Council unanimously approved a 3% across‑the‑board inflation adjustment to nonprofit contracts for FY26 — a $5.25 million package the council said is a baseline step to preserve services amid rising costs and federal funding uncertainty.
The Montgomery County Council unanimously approved a 3% inflationary increase to nonprofit contracts for fiscal 2026, a motion the council president put on the floor after staff outlined the fiscal impact of the adjustment.
Council staff told members the recommended adjustment totals about $5.25 million across departments, with roughly $3.5 million — about 68% of the total — concentrated in the Department of Health and Human Services. Staff warned that each one‑percentage point change in the inflationary adjustment equals roughly $1,750,852, with most of that tax‑supported.
"This is the floor of what you need," Council Member Albanese said in support of the recommendation, calling the nonprofit sector a core part of the county’s social safety net and urging the council to protect the capacity of providers who deliver services to the most vulnerable residents.
Several council members echoed that view. "I ran a nonprofit for a very long time — it's so difficult to meet basic inflation costs, particularly in keeping our staff," Council Member Balcom said, describing the increase as an issue of parity with county compensation adjustments. Council Member Mink called the raise the "minimum to continue moving forward," noting uncertainty about next year’s revenue.
Council President called for a hand vote after the discussion; the adjustment passed unanimously.
Why it matters: County staff and council members said the increase is intended to help nonprofit partners retain staff and maintain services after flat or reduced federal funding and rising operating costs. The council emphasized that the 3% figure is a baseline and that further decisions could follow as the FY26 budget process continues.
What’s next: The increase was approved as part of the council’s work session review of the FY26 operating budget and will be reconciled with other budget decisions in the weeks ahead.
