March 18, 2015

Leggett’s FY 2016 Operating Budget Tightens Belt on Spending; Property Tax Rate Cut, Solid Waste Fees Down 4 Percent; Few Increases Cover Economic Development, Schools, Libraries



The Recommended FY 2016 Operating Budget of $5.1 billion submitted by County Executive Ike Leggett increases County government tax-supported spending by only 1.1 percent while cutting the County property tax rate by about one cent. The balanced budget closes an estimated $238 million gap.

Highlights include:
  • Funds the Montgomery County Public Schools (MCPS) budget of $2.2 billion – the Maintenance of Effort level required by State law. That represents a $30.7 million increase over last year, or 1.4 percent, and is nearly 98 percent of the Board of Education’s request.
  • Reduces the property tax rate by 0.9 cents per $100 of assessed valuation (from 99.6 cents to 98.7 cents). The average County residence, valued at $455,600, would pay $3,805 in FY16 -- an increase of only $15 for the year.
  • Reduces Solid Waste fees by 4 percent across-the-board for families and businesses.
  • Provides $43.9 million for affordable housing creation and preservation:
  • Adds $7 million in funding for senior housing projects in Silver Spring and Glenmont.
  • Increases funding for the Department of Public Libraries by 5 percent – mostly in increased materials.


The full budget and highlights are available on the County’s website at reports.data.montgomerycountymd.gov/omb.

Read the entire news release.

Watch brief budget announcement video by Leggett.


4 comments:

  1. 'Reduces the property tax rate by 0.9 cents per $100 of assessed valuation (from 99.6 cents to 98.7 cents). The average County residence, valued at $455,600, would pay $3,805 in FY16 -- an increase of only $15 for the year.'
    Interesting math. Maybe someone could fill in the details?

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    1. The rate is going down one cent. The average home will pay about $15 more a year because home assessments went up. It is a lower rate on a higher assessed value, so it goes up a little. By way of comparison the property tax in Fairfax County went up over $350 last year on the average tax there.

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  2. Maybe the county can reduce cost more. I am an eldering person and find living in Montgomery County more difficult because of the high cost of living. You are pushing us out of Montgomery County as well as the state of Maryland.

    ReplyDelete
    Replies
    1. Thank you for your note.

      Under the County Executive’s recommended budget, County spending goes up only 1.1 percent – less than the cost of inflation. Over his 9 years, overall spending has gone up barely 2 percent a year. Also, County taxes as a percentage of County residents' income is actually down 5 percent over the last 9 years.

      The County Executive has preserved or created nearly 15,000 affordable housing units and put special emphasis on improving senior services. County government itself can’t control the cost-of-living in the DC Metro area, but we are doing what we can.

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