WASHINGTON — Montgomery County could be in for a tight spending plan next year, if a recent memo from budget director Jennifer Hughes is any indication.
Citing “disappointing” revenue growth, Hughes said “aggressive actions” like 4.5 percent cuts to agency spending might be necessary to keep the county’s finances in check. Current revenue projections are off by $37 million for fiscal 2016 and down $98 million for fiscal 2017.
To make matters worse, the county is obligated to partially fund the school system under the so-called “maintenance of effort” formula. Therefore, agency spending cuts could rise to 11.5 percent.
“The glass looks half-full, we shall see,” said Council President Nancy Navarro, a former county school board member. “Obviously, we’re not looking at a rosy fiscal future at this point.”
Councilwoman Nancy Floreen was asked if property tax hikes were on the horizon. She said it’s too early in the budget season to answer that.
“I don’t see a great opportunity for new spending presenting itself at this moment in time,” Floreen said.
A glitch in the state spending matrix
A “code error” in the Maryland Comptroller’s office has led to a glitch in sorting municipal tax returns that goes back to the 2010-2014 tax years.
Andrew Friedson in Comptroller Peter Franchot’s office says the error won’t have an impact on individual taxpayers. He explains it’s more like a mix up in tax returns for local towns — like if Gaithersburg’s returns were scrambled with those of Rockville.
Friedson says the coding of taxes among Montgomery County’s municipalities is complicated, given details like special taxing districts within the county’s municipalities. Freidson says the Comptroller has contacted an outside firm to analyze the error and help make corrections. He did not identify which firm would be working to study the glitch.
In a note to Montgomery County council members, county finance director Joseph Beach said “it’s not possible to draw any specific conclusions as to the fiscal implications of this matter for Montgomery County.”
“But,” he said, “it should be clearer by the time the county and municipalities put their FY17 operating budgets together.”
WTOP’s Kate Ryan contributed to this report.
