Council OKs $7.9B Budget But MCPS Cuts Still Possible

MONTGOMERY COUNTY, MD — A day after postponing their budget vote, the Montgomery County Council reconvened Friday to approve a $7.9 billion operating budget.

Although the 9-2 approval by the Council was a straw vote, there's no indication the vote tally will change in the week ahead. The official budget vote is scheduled Thursday.

The two opposing votes were from councilmembers Andrew Friedson and Dawn Luedtke.

The current budget for fiscal year 2027 includes a progressive income tax structure that raises taxes for residents who make over $150,000 and makes cuts for those who earn less.

Not included in the budget was the property tax rate increase previously proposed by County Executive Marc Elrich.

However, some homeowners may still see a rise in their property tax bill as the Council axed the Tax Offset Credit for individuals listing their home as a principal residence. The ITOC amounts to a $692 credit.

Elrich had proposed the property tax increase as a means to keep schools fully funded.

Shortly after the vote, Erlich issued a statement saying the Council's budget efforts were "regressive."

"I have been criticized relentlessly for recommending raising property taxes by $165 million, and yet, the Council found a different way to raise property taxes by $140 million," he said, referring to the ITOC elimination.

"They have missed an opportunity to provide our community with the schools and services we need and deserve. This means more will be left to our successors to resolve."

'Our Choices Are Awful'

While the Council did approve a $143 million increase for Montgomery County Public Schools, it was still $36 million short of the district's request.

Ahead of the Council's vote, MCPS Superintendent Thomas Taylor warned that if the full amount was not included in the budget, serious reductions would need to be made.

Moments after the vote, Taylor said that while some MCPS jobs were safe, the same could not be said for all positions.

"There is no escaping it," Taylor said. "Even though this is a more favorable budget outcome than what we were looking at earlier this week, the changes we will need to make to close our $36 million gap will be significant, and they will impact services to students and families."

"Our choices are awful," he underscored.

Looking to fiscal 2028, Taylor said the school district would be experiencing additional setbacks as officials had used a one-time financial pot to balance the operating budget for fiscal 2027.

"This should be a giant red flag for everyone and cause for tremendous concern because it means that next year's budget process will be even more difficult," he said.

After the Council's final budget vote on Thursday, Taylor plans to submit to the school board a list of recommendations intended to close the financial gap.

A final decision on how MCPS proceeds won't be made until the board's June 4 vote.