County Council approves $143M budget increase for MCPS; personnel cuts still possible

Key Points:

• The Montgomery County Council voted 9-2 to approve a $7.9 billion operating budget for the next fiscal year, allocating an additional $143 million to Montgomery County Public Schools (MCPS), which is $36 million less than the district requested.
• The budget approval, which includes no property tax rate increase but introduces a progressive income tax for earners above $150,001, risks hundreds of educator positions, including media assistants and social workers, due to funding shortfalls.
• A motion to reallocate $36 million from the six-year capital improvements program to MCPS passed 7-4, partially offsetting proposed reductions, with funds taken from systemic school projects like HVAC and roof replacements.
• The council eliminated the Income Tax Offset Credit (ITOC), a $692 property tax credit for homeowners, to compensate for revenue losses from the new progressive income tax plan.
• Despite discussions, the council did not approve a property tax rate increase to fully fund the school district's request, and final budget approval is due by June 1, with potential impacts on hundreds of educator jobs.