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Montgomery proposes 8.6 percent increase in property tax bills Proposed Montgomery County budget has biggest property-tax hike in eight years
(35 minutes later)
Montgomery County Executive Isiah Leggett proposed a 2017 budget Tuesday that would increase property tax bills by an average of 8.6 percent — the biggest hike in eight years — to fund a fast-growing school system and replace revenue lost when the Supreme Court ruled Maryland’s income tax system unconstitutional last year. Montgomery County Executive Isiah Leggett proposed a 2017 budget Tuesday that would increase the average residential-property-tax bill by 8.7 percent — the biggest hike in eight years — to fund a fast-growing school system and replace revenue lost when the Supreme Court ruled that Maryland’s income-tax system was unconstitutional last year.
The $5.2 billion operating budget for the fiscal year beginning July 1, which goes to the County Council, increases spending by just under two percent. It lifts the property tax rate by 3.94 cents per $100 of assessed valuation, from 98.7 cents to $1.02. The $5.2 billion operating budget for the fiscal year beginning July 1, which goes to the County Council for consideration, increases spending by just less than 2 percent. It lifts the property-tax rate by 3.94 cents per $100 of assessed valuation, from 98.7 cents to $1.02.
If approved, the owner of an average county home, valued at $464,000, would pay an additional $325 a year in property taxes, raising a typical bill from $3,750 to $4,075.If approved, the owner of an average county home, valued at $464,000, would pay an additional $325 a year in property taxes, raising a typical bill from $3,750 to $4,075.
He told Council members Tuesday that was no longer an option. Property taxes have remained relatively flat for the past few years. But throughout 2015, Leggett signaled the likelihood of a significant increase, citing sluggish economic growth, potential losses from the income-tax case that went before the Supreme Court and urgent unmet needs in schools. When he unveiled his 2016 spending plan last year, he said he was “tempted” to include the hike but opted to wait.
Property taxes have remained relatively flat for the last few years. He told council members Tuesday that was no longer an option.
But Leggett told Council members Tuesday that was no longer an option. “The budgetary pressures on the County are long-term pressures and can no longer be addressed through short-term fixes,” Leggett said in a transmittal letter to the council’s president, Nancy Floreen (D-At Large).
Throughout 2015signaled the likelihood of a significant increase, citing sluggish economic growth, potential losses from the Wynne income tax case and urgent unmet needs in schools. When he unveiled his 2016 spending plan last year, he said he was “tempted” to include the hike but opted to wait. Also lurking in the wings is the possibility of a term-limits proposition on the county ballot this fall. Boyds activist Robin Ficker said he is gathering the required signatures to place the issue before voters. A similar proposal drew 48 percent support in 2004. It would limit the county executive and council members to three consecutive four-year terms. An unwelcome tax increase this spring, combined with the palpable hostility toward “career politicians” evident in the 2016 election season, could add momentum to the measure.
“The budgetary pressures on the County are long-term pressures and can no longer be addressed through short-term fixes,” Leggett said in a transmittal letter to Council President Nancy Floreen (D-At-Large). Tax increases are never popular, and this proposed hike would probably cause political heartburn for council members, especially those who aspire to run for county executive in 2018, when Leggett is expected to retire, after completing his third term.
Also lurking in the wings is the possibility of a term limits proposition on the county ballot this fall. Boyds activist Robin Ficker said he is gathering the required signatures to place the issue before voters. A similar proposal drew 48 percent in 2004. It would limit the county executive and County Council members to three consecutive four-year terms. An unwelcome tax increase this spring, combined with the palpable hostility toward “career politicians” evident in the 2016 election season, could add momentum to the measure. If the Ficker proposition reaches the ballot and passes, it would be effective retroactively, meaning that four council members known to be interested in Leggett’s job — Roger Berliner (D-Bethesda), Marc Elrich (D-At Large), George L. Leventhal (D-At Large) and Floreen — would have to step down in 2018. They could, however, still run for county executive.
Tax increases are never popular, and this proposed hike will likely cause political heartburn for council members, especially those who aspire to run for county executive in 2018, when Leggett is expected to retire after completing his third term. The lion’s share of funds from the proposed tax hike would go to the 156,000-student Montgomery County Public Schools. Enrollment has mushroomed by more than 18,000 since 2007 and continues to rise by about 2,000 students a year, creating serious overcrowding in some schools.
If the Ficker proposition reaches the ballot and passes, it would be effective retroactively, meaning that four council members known to be interested in Leggett’s job--Roger Berliner (D-Bethesda), Marc Elrich (D-At-Large), George Leventhal (D-At-Large) and Floreen --would have to step down in 2018. They could, however, still run for county executive. Leggett proposes a $2.4 billion county appropriation that is nearly $90 million more than state-mandated minimum spending requirements, or “maintenance of effort.” And $33 million more in school fund balances would be folded into the spending plan.
The lion’s share of funds from the proposed tax hike would go to the 156,000-student Montgomery County Public Schools (MCPS). Enrollment has mushroomed by more than 18,000 since 2007 and continues to rise by about 2,000 students a year, creating serious overcrowding in some schools. He said that per-pupil funding in the county has not increased since fiscal 2009, an untenable situation in a system with multiple challenges posed by a growing non-English-speaking school population and the achievement gap separating minority and non-minority students.
Leggett proposes a $2.4 billion county appropriation that is nearly $90 million above state-mandated minimum spending requirements, or “maintenance of effort.” Another $33 million in MCPS fund balances would also be folded into the spending plan. “I believe we must provide the Board of Education with additional resources to further address many of these challenges,” Leggett said. The total county appropriation still falls about $40 million short of the amount requested by the Montgomery Board of Education.
He said that per-pupil funding in the county hasn’t increased since fiscal year 2009, an untenable situation in a system with multiple challenges posed by a growing non-English-speaking school population and the achievement gap separating minority and non-minority students. Leggett’s other budget priority is replacing revenue lost as a result of the 5-to-4 Supreme Court decision in Comptroller of the Treasury of Maryland vs. Wynne. The case was brought by a Howard County couple who challenged a provision in state law that denied residents a full credit for taxes paid on income earned outside the state.
“I believe we must provide the Board of Education with additional resources to further address many of these challenges,” Leggett said. The total county appropriation still falls about $40 million short of the amount requested by the Montgomery Board of Education.
Leggett’s other budget priority is replacing revenue lost as a result of the 5-4 Supreme Court decision in Comptroller of the Treasury of Maryland vs. Wynne. The case was brought by a Howard County couple who challenged a provision in state law that denied residents a full credit for taxes paid on income earned outside the state.
The court said Maryland’s system constituted illegal double taxation. The court ordered the state to make refunds to residents who had filed claims against the provision.The court said Maryland’s system constituted illegal double taxation. The court ordered the state to make refunds to residents who had filed claims against the provision.
It means that the county will see its quarterly revenue distributions from the state reduced by at least $50 million in 2017 and by more than an estimated $200 million over the next four years. The county could get additional time to absorb the losses if legislation pending in the General Assembly is passed. If so, Leggett said, the proposed tax hike could be lowered. It means that the county would see its quarterly revenue distributions from the state reduced by at least $50 million in 2017 and by more than an estimated $200 million over the next four years. The county could get additional time to absorb the losses if legislation pending in the Maryland General Assembly is passed. If so, Leggett said, the proposed tax hike could be lowered.
The new budget proposes increases in other key areas. New collective bargaining agreements will provide about $14 million in raises and longevity payments to police, fire and non-uniformed county employees in 2017. The new budget proposes increases in other key areas. New collective bargaining agreements would provide about $14 million in raises and longevity payments to police, fire and non-uniformed county employees in 2017.
The library system would get an additional $1 million, restoring some weekend hours cut during the recession. There is additional funding for police body cameras and new protective vests for officers. The library system would get an additional $1 million, restoring some weekend hours cut during the recession. There is additional funding for police body cameras and new protective vests for officers.
One uncertainty surrounding the budget is how many council votes will be required to pass it in May. A charter amendment approved by voters after a big hike in 2008 — the product of another Ficker initiative — caps the amount of property tax revenue the county can collect each year. Because Leggett’s plan breaks the cap, approval requires a unanimous 9-0 council vote, under the terms of the charter amendment. One uncertainty surrounding the budget is how many council votes will be required to pass it in May. A charter amendment approved by voters after a big hike in 2008 — the product of another Ficker initiative — caps the amount of property-tax revenue the county can collect each year. Because Leggett’s plan breaks the cap, approval requires a unanimous vote among the council’s nine members, under the terms of the charter amendment.
But 2012 state legislation carved out an exception to above-the-cap revenues if they are dedicated to education, requiring only a simple majority vote of the council. Prince George’s County Executive Rushern Baker III employed the law in his push last year for a major schools funding increase, But 2012 state legislation carved out an exception to above-the-cap revenue if it is dedicated to education, requiring only a simple majority vote of the council. Prince George’s County Executive Rushern L. Baker III (D) employed the law in his push last year for a major funding increase for schools.
Montgomery County attorneys have advised that Leggett’s plan could pass with a simple majority vote, but that such a move would likely be challenged in court. The council is expected to debate how to proceed. Montgomery County lawyers have advised that Leggett’s plan could pass with a simple majority vote but that such a move would probably be challenged in court. The council is expected to debate how to proceed.