Montgomery County Executive Marc Elrich released his proposed $7.7 billion budget for fiscal year 2026 on Friday and warned that there would be a tax increase in it.
In arguing for the 3.5% property tax increase, he said it was necessary in order to fund the county’s public school system.
“The most valuable asset this county has is its schools. You cannot afford to lose that,” Elrich said.
Elrich’s spending plan includes a $250 million increase for schools.
“What this budget does is recognize the real needs that students and families have in our school district, while remaining cognizant of the fiscal challenges that we continue to face,” Montgomery County Education Association President David Stein said in a statement. “MCEA understands the uncertainties at the state and federal levels, but above all, we appreciate the steadfast commitment to students, families, and educators.”
Elrich also noted that proposed budgets from the Trump administration and Maryland’s Gov. Wes Moore include a cut in taxes.
“Decreases in taxes are being accompanied by shifts in responsibility,” Elrich said, suggesting it would be up to Montgomery County to take up the slack.
At the same time, Elrich suggested that his spending plan has been drawn up with a lot of unknowns. He cited the impact of federal cuts to state governments and the fact that Maryland lawmakers are dealing with a $3 billion shortfall.
“We are facing economic and political uncertainty, but we cannot afford to stand still,” Elrich said in a statement.
The Maryland General Assembly is in session until April 7 and lawmakers have been debating tax increases at the state level to close the budget shortfall.
Montgomery County Council President Kate Stewart issued a statement warning that the deliberations over the proposed budget from Elrich “will likely be some of the most challenging since the start of the Great Recession.”
“The two major challenges we face this year are the unpredictable impact of the erratic and damaging cuts to federal jobs and federal aid combined with the unknown scope and scale of state budget obligations that will likely be shifted to Montgomery County,” Stewart added.
The council will hold public hearings on the budget on April 7 and 8.
Once deliberations end, the council will hold a vote by June 1 for the fiscal year that starts July 1.
An interactive exploration tool into the budget proposal is available online.
Other features of the budget:
- $3.6 billion for schools
- $811.8 million for public safety
- $555.7 million for health and human services
- $308 million for transportation
- $248 million for environment
- $351 million for “non-departmental accounts” that include things like the consolidated retiree health benefit trust, grants, the Housing Opportunity Commission, and weather response, including snow removal
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