Dear Friends,
Our County’s long-term fiscal outlook was in the headlines this week, not unexpectedly. The County’s fiscal team presented its regular mid-year update to the County Council. We update our projections throughout the year, and this particular report estimates the revenue we expect over the next six years. Below is a graphic prepared for the Council charting the projections.
The orange line represents what we had previously forecasted, and the blue line shows our current estimates. This isn’t an immediate problem, but something that needs to be considered as we finalize the next operating and capital improvements budgets.
Several news outlets mischaracterized this as a shortfall, but that's not the correct perspective. Our economy is still expected to grow, but not by as much as it has in our County over the past few years.
We had much stronger-than-expected revenues in each of the past two fiscal years, which we used to bolster our reserves well over the targeted level. These estimates attempt to incorporate the impacts of federal cutbacks and layoffs to our local tax base. This projection is a sign of the pain we currently anticipate in our local economy.
Our County has a long tradition of fiscal prudence and strong management practices, as evidenced by our best-in-the-nation AAA bond ratings. I am proud to report that our County has never been better prepared for the fiscal challenges we face. However, we can't control an economic slowdown. Federal decisions, such as tariffs, and local decisions to forgo taxes to help developers build in areas where they would develop anyway, have real fiscal impacts that we have yet to fully understand. They will drive prices up, hurt our local markets, and increase revenue uncertainty.
It can be said that revenue forecasting is like driving a car by only looking in the rearview mirror—you’re adjusting based on what’s happened in the past to inform your next turn. We are making guesses about how new federal tax laws will impact us in the years ahead.
Over the fall, I hosted 12 forums to hear your concerns and requests for next year’s budget. I know that many families are struggling under the current economic conditions, but I also know others are doing better than ever. This is a new and complicated reality for our community. Rest assured that as we move forward in the budget process, we will continue to be mindful of how we allocate resources and meet the community's needs.
A Disappointing Vote on the University Boulevard Corridor Plan
I am disappointed by the Council’s passage of the controversial University Boulevard Corridor Plan this week by a vote of 7-3. I want to thank Councilmembers Will Jawando, Kristin Mink, and Sidney Katz for voting against the plan after listening to the extensive concerns raised by hundreds, if not thousands, of residents.
I have written and spoken about this plan for months. In fact, I testified before the Council during their public hearing – the first time I had done so as County Executive. I testified to emphasize my serious concerns with this Corridor Plan. Residents, businesses, and other representatives used to serve on advisory committees and voted on the plan, and now they’ve been removed from any meaningful role in the planning process.
You can read the memo I sent to the County Council outlining the concerns here. You can also listen to my weekly media briefing, where I discuss this and was joined by Cheryl Gannon, president of the Montgomery County Civic Federation. Watch and listen here.
The Council’s own Office of Legislative Oversight (OLO) raises serious concerns. They completed a racial equity and social justice impact statement (RESJIS) for the related ZTA 25-12, which is an overlay zone (they are not tasked with RESJ analysis for a corridor plan only for ZTAs). Here’s what they wrote:
“Overall, the information shared in Planning’s memo does not change our RESJIS finding for ZTA 25-12. We anticipate that ZTA 25-12 could have a negative impact on RESJ because the proposed rezoning that it helps codify could disproportionately displace Black and Latinx homeowners for the development of market-rate housing that primarily benefits other community members.” (Source: MetaViewer.php)
Those sentences warranted the Council’s attention in the public record and should have been enough to slow down the Council’s consideration of this plan, but it didn’t.
Unfortunately, this is not the first time a racial equity analysis has been ignored. The Council commissioned a racial equity analysis for the general plan, Thrive 2050, and then dismissed the results. You can read more about it in this Statement from County Executive Marc Elrich on the Passage of Thrive 2050.
Before I explain some of the unresolved problems with this plan, I want to emphasize that the missteps in this plan should concern residents throughout the County, not just those near University Boulevard. You should be concerned because this is just the first of many new corridor plans that are coming to the Council. And, because of the characteristics of corridor plans, they are likely to share the problems of this Plan. The Montgomery Civic Federation, which includes communities from around the County, issued the following statement after passage of the Plan:
“The Montgomery County Civic Federation is deeply disappointed in the Council’s action to approve this plan, which will make housing more expensive, create greater traffic congestion, and do great damage to the environment. The Council has ignored the warnings of the County’s Racial Equity and Social Justice review that points to the harm to lower income and communities of color in the area. The Council has broken faith with residents of the affected communities with a plan that reneges on carefully negotiated parameters for corridor development under More Housing NOW, which became effective just last month. We extend our thanks to Councilmembers Jawando, Katz, and Mink for their constructive engagement with residents and efforts to improve the flawed legislation.”
Testimony by Cheryl Gannon, president of the Civic Federation, can be found here.
While the final version of the plan made some improvements, it still fails as a guide for the future development of the area within the “gerrymandered” plan boundaries. I will highlight just a few of the issues:
- A map clearly showing the approved rezoning has never been presented. This runs counter to fundamental issues of fairness and transparency.
- The portion that allows 90% coverage on lots of greater than 15,000 square feet was not discussed. This amount of lot coverage for residential development is a dramatic departure from current practice and deserves careful discussion.
- The OLO response regarding the racial equity analysis for ZTA 25-12 that I referenced above was not adequately addressed.
- The plan is premised on bus rapid transit (BRT), which is not even planned yet along University Boulevard. Currently, it’s a line on a map; none of the density is contingent upon the construction of – or even the planning for – the BRT.
- This plan has the potential to double the number of residences along the corridor – up to 4,000 more. That’s a huge increase that deserves careful discussion, particularly because it is not balanced with adequate transportation (BRT) or infrastructure.
- The rationale that this plan was needed to address safety does not withstand scrutiny. MDOT, on its own, began work on a study for safety measures for University Boulevard. The study is currently underway, with proposed actions scheduled for some time in the coming year. University Boulevard is a State road, and so it is the State that leads on this.
- Environmental concerns remain unaddressed. I am repasting below the original general comment from the Department of Environmental Protection that is still relevant:
The passage of the University Boulevard Corridor Plan demonstrates the disintegration of our planning process. This is a plan that excludes the adjacent communities and the good principles of planning. Planning was once a process that included residents, developers, business owners, and others at the table, and Park and Planning staff served as technical advisors. They have now become advocates who seem to think they know better than the people who live and invest in the community. Now, residents are essentially out of the process. They have no votes and no real role in decisions. Although the vote is essentially complete, a vote on the Sectional Map Amendment will be held in the new year. Even if the outcome cannot be changed for this plan, you may want to express your concerns to Councilmembers.
New Leadership for CASA
I used my media briefing this week to shine a spotlight on CASA. I remember when the group first started in a Takoma Park office within a church, and I worked with them to help establish the first permanent location for a day laborer center in Takoma Park. CASA is now known around the region and the nation for its work on behalf of immigrants. This year, CASA was front and center as they helped fight the illegal deportation of Kilmar Ábrego García. While his case received enormous media attention, it is just one example of what CASA has been doing to ensure that all immigrants receive due process in this nation.
CASA is a critical partner in providing education, job training, resources, and a helping hand to all those who arrive in our communities. They help families in many different ways — providing tax preparation, yes, these folks pay taxes; developing youth leadership; and assisting families through the citizenship process. Many of the clients they serve are from African nations, so it’s not just an organization that benefits Spanish-speakers.
What isn’t talked about enough is CASA’s work on behalf of those who aren’t immigrants. They also fight for native-born, U.S. citizens, workers, tenants, those facing injustice, and those in need of a voice at all levels of government. Our long fight to increase the minimum wage and provide rent stabilization across Montgomery County could not have been accomplished without the advocacy work of CASA.
Last week's Trust Act press conference was the public's first chance to hear from the new leader of CASA, George Escobar. He is the incoming executive director, succeeding the founder and longtime leader, Gustavo Torres. George has been with CASA for almost 15 years, so the transition should be smooth. Still, he takes over at a time when there is increased fear within the immigrant community that's driving many people away from community engagement and, in some cases, towards self-deportation. He thanked the County for its help in developing many partnerships, including one with Montgomery College to offer training that allows individuals, regardless of their background or language, to build skills that lead to better-paying jobs.
CASA helps us uphold our values by enabling everyone to succeed, which ultimately benefits our community. Remember the work CASA does on behalf of all of us as they continue to do good work in and outside of Montgomery County.
Gabe Albornoz Confirmed as Recreation Director
This week, the Montgomery County Council unanimously approved Gabe Albornoz as director of the Montgomery County Department of Recreation. He returns to the director’s office after serving seven years on the County Council.
The Department of Recreation is one of the County’s most widely used and trusted community resources. I know Gabe is committed to continuing our goals of providing inclusive, diverse, and accessible programming for all of our residents.
He is a strong leader with a big heart, which is essential to building on our success of improving and enriching lives through Rec. Under Albornoz’s leadership, residents can expect the department to prioritize program accessibility, community well-being, and the operational investments needed to sustainably deliver high-quality services. I know he shares the goal of delivering programs that meet the diverse needs and interests of our communities, especially our most vulnerable residents.
For fiscal year 2026, the Department of Recreation’s budget totals $68 million, reflecting a $3.5 million increase over the previous year. The department employs 191 full-time staff members and over 2,500 seasonal employees. Recent analysis of the department shows steady year-to-year growth in aquatics programming, services for older adults, youth engagement, and overall participation. I am confident that our direction will continue upward, even as we face fiscal challenges ahead.
New Councilmember Appointed to Fill Vacant At-Large Position
I want to welcome Shebra Evans to the County Council. She is a former school board member and two-time school board president. She steps in at a time of great uncertainty due to the actions of the federal government.
She was one of 67 people who applied to serve the final year of the open Council seat vacated by former Councilmember Albornoz. I would like to thank our community for being willing to help in this way, and I would also like to thank Shebra for her willingness to serve. I look forward to working with her as she steps into this new role and continues her service to the people of Montgomery County.
Bracken Square Affordable Housing Complex Grand Opening
On Monday, the Bracken Square apartments in Silver Spring opened. It is a 98-unit mixed-income building. The building comprises the following unit layouts affordable to households with incomes between 30% and 80% of the area median income:
- 28 one-bedroom units
- 55 two-bedroom units
- 15 three-bedroom units – which are very rare to find
I would like to thank Scott Bruton, Director of the County’s Department of Housing and Community Affairs, and his staff for their efforts in supporting this important project.
We’re nearing the end of 2025, and this has been another historic year for the County’s investments in affordable housing. Since fiscal year 2023 (FY), we have created and preserved more than 4,500 affordable units. In FY25 alone, we closed financing totaling $108 million to support the creation or preservation of more than 1,800 affordable units countywide.
These investments reflect our values: access to affordable housing is about stability, dignity, and opportunity. By stepping in when we did and working with partners like TM Associates and Green Street Housing, we keep our residents from being priced out of their homes. Accomplishments like this help us keep residents here where they want to be.
Filing Lawsuits Against Feds for HUD Cuts
Just after the federal shutdown ended, Maryland’s Attorney General Anthony Brown joined 20 states in filing a lawsuit to protect thousands of people in danger of feeling the impact of severe cuts to social services.
Every year, the federal government issues a Notice of Funding Opportunity for the Continuum of Care (CoC) grant program. Montgomery County uses that money for permanent supportive housing so that people who have experienced homelessness have stable, long-term housing. Losing this money means hundreds are at risk of losing their homes.
At this moment, we are not optimistic about receiving federal funds to support this important program, and we are discussing alternative options.
In a letter to our congressional leadership sent in September, I outlined my concerns. HUD may require localities to ban encampments of unhoused people and require cooperation with federal immigration enforcement as conditions of funding awards. This could jeopardize HUD-funded housing of up to 757 people in Montgomery County, most of whom are people with disabilities, who live with minor children (457 individuals) or are over age 65 (54 individuals). In addition to destabilizing our systems of rapid re-housing and permanent supportive housing, a loss of funding for Montgomery County’s program would result in $8.3 million less in leasing and rental assistance received by 198 local landlords, as well as the loss of employment for 47 CoC program staff.
One thing that stood out to me from the proposals I’ve been briefed on is how these changes would punish communities for sharing life-saving drugs like Narcan with homelessness program participants. This proposal is sick and twisted, and here’s why: It would make it a criminal offense for homeless shelter workers to administer anti-overdose medication to help save a client’s life. This would be considered encouraging addiction and drug use. You’re probably wondering how saving someone's life encourages addiction? Well, if you let the person die, they are no longer addicted to and pursuing drugs. Drug addiction solved!
This twisted logic assumes that the person administering Narcan is enabling a person who survives an overdose to use drugs again. There is another possibility that the person gets treatment, recovers from their addiction, and becomes a functioning and productive member of society. Under Trump’s directive, just letting an overdose victim die is the cure. His proposals to end homelessness are just ludicrous. Pulling the funding for programs to prevent homelessness, which are a waste of money in his mind, leaves people homeless. They will lose valuable resources that help people find jobs and access other support. There’s no acknowledgement that people might be struggling with mental health issues or simply lack the skills to get a job.
America has never had a leader so insensitive and depraved. Turning your back on those in need is antithetical to our society’s values, and to the values of all major religions, where the concept of healing the sick, feeding the hungry, and housing the unsheltered go hand in hand with compassion. It’s essential to living in a civilized society. These changes ignore the fact that providing housing dramatically increases the chances of long-term stability and success in voluntary treatment services for those experiencing homelessness. Our programs work to move people experiencing homelessness into stable living conditions.
Congress never weighed in on these changes—they are simply at the directive of the Trump administration. I hope this lawsuit forces the Trump administration to halt this destructive action and return to policies that support people's success.
State Actions on Hepatitis B Vaccines
Last week, a panel of Trump-backed vaccine advisers voted to end the recommendation for the first dose of the hepatitis B vaccine to be given within the first 24 hours of birth. That recommendation has been in place since 1991, and since its start, hepatitis B infections in children and teens have decreased by 99%.
In response, the Maryland Department of Health issued an advisory emphasizing the importance of administering the birth dose of the hepatitis B vaccine. It follows the guidelines established by the American Academy of Pediatrics. State health leaders have issued a standing order for hepatitis B vaccination, authorizing qualified health care professionals to administer the vaccine.
This is yet another example of how Maryland, through our State Health Department, steps in when dangerous recommendations are issued. It’s also another example of the dangers of a completely unqualified and delusional person in charge of a federal agency, this time the one responsible for promoting our health. This is not good.
Hepatitis B is a liver infection that spreads through direct contact with bodily fluids and can lead to severe liver conditions, like cancer or liver failure. Public health experts worry that the revised recommendation could raise unfounded safety concerns about the vaccine and encourage some people to opt out, potentially leading to an increase in illness.
I can’t believe someone would try to argue that our world is safer and less susceptible to disease by eliminating tried and true protection. I am glad that in Maryland, doctors and nurses will be reassured that proper medical guidance is still being offered and encouraged for parents of newborns.
Santa Returns to Montgomery County, The Children’s Inn
I want to thank Montgomery County law enforcement for once again having Santa's back. Motorcycle police officers joined Santa for a shopping spree and tour across the County this week.
The yearly ride benefits The Children’s Inn, which serves hundreds of families each year who visit the National Institutes of Health for treatment as part of world-class clinical research. I am proud of the role Montgomery County, and specifically our police department, plays in ensuring these children and their families do not feel forgotten over the holidays.
Donation collection took Santa through Poolesville, Damascus, Olney, Cherry Hill, Gaithersburg, Rockville, and North Bethesda. Visitors got to see Santa and Mrs. Claus brave the cold as they worked their way to the kids and lifted their holiday spirit.
This year, we are asking the community to get more involved through the Montgomery Gives Local campaign. Many in our community have faced setbacks this year, including job losses and disruptions to their income. Our community service providers are in the same position, with fewer people able to give, and rising need. The best way to give back to our community is by donating money that directly benefits our local community partners.
As we have seen the growing need for emergency services, with more than 80% of families served by our food assistance providers seeking help for the first time, we plan to extend the Montgomery Gives Local campaign beyond the holiday season.
To give your time to a local organization, please visit the Montgomery County Volunteer Center and explore how to utilize your talents to help your neighbors best.
As always, my appreciation for all of you,
Marc Elrich
County Executive
