Fani-González proposes MoCo operating budget with no property tax rate hike
MCPS would receive $90M more than this fiscal year, but $100M less than requested; union employees’ raises to be reduced
By
Ceoli JacobyApril 17, 2026 1:04 p.m.
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Make a ContributionMontgomery County Council President Natali Fani-González (D-Dist. 6) on Friday unveiled an alternative to County Executive Marc Elrich’s proposed county operating budget for fiscal year 2027 that doesn’t include his recommended dedicated property tax rate increase to fund Montgomery County Public Schools (MCPS).
“Families in this county are facing an affordability crisis,” Fani-González said in a recorded message on social media Friday. “Household budgets are stretched thin, and we cannot add to their burden by raising their taxes in this budget.”
Her budget proposal also calls for the implementation of a bracketed income tax structure and a reduction in negotiated pay raises across county agencies and departments, including MCPS.
Under the $7.9 billion operating budget proposal from Fani-González, the county’s contribution to MCPS in fiscal year 2027 would be $2.43 billion. That is $90 million more than the county’s contribution to MCPS for this fiscal year, but $100 million less than what the district requested for fiscal year 2027, which begins July 1.
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The $8 billion operating budget proposal put forward last month by Elrich (D) would fully fund the district’s $3.79 billion request with a county contribution of $2.52 billion. The district’s request represents a 5% increase over current spending. The council is in the process of reviewing Elrich’s budget plan.
The increased funding for MCPS under Elrich’s plan would come from a 6.3-cent increase to the county property tax rate — from $1.026 to $1.089 per $100 of assessed value.
Several councilmembers — including Fani-González — have said for weeks they would not support Elrich’s proposed property tax rate increase in light of recent federal job cuts and general economic uncertainty.
Bracketed income tax structure
In addition to doing away with Elrich’s proposed property tax rate increase, Fani-González is calling for a bracketed income tax structure. Elrich’s proposed budget calls for a .1% increase in the income tax rate for all county residents, from the current 3.2% to 3.3%.
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With Fani-González’s proposal, the county income tax rate for those making $50,000 or less annually would be 2.5%, a .7% decrease from this year. The rate for those making $50,001 to $150,000 would be 2.85%, a .4% decrease from this year.
The county income tax rate for those making $150,001 to $300,000 would remain at 3.2%. The county income tax rate for those making more than $300,000 annually would increase to 3.2.%.
In a memo to the full council on Friday, Fani-González wrote that her proposed income tax structure would result in a tax break for 96% of county households.
To afford reduced income tax rates for most residents, she calls for eliminating the Income Tax Offset Credit and the Working Families Income Supplement — two county programs aimed at providing tax relief to middle-income residents.
“While both of those programs are intended to provide ‘progressivity’ to our current regressive income tax structure, they are highly imperfect,” Fani-González wrote in the memo.
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“By creating a progressive income tax structure, we’re eliminating the need to provide this limited relief as a property tax credit, ensuring that the relief goes to those earning the income and not just those who own property,” she continued.
Reduced raises
Fani-González’s alternate operating budget would provide a general wage increase of 2% across agencies including MCPS, Montgomery College and county divisions and departments.
Elrich’s budget proposal included funding employee wage increases that have been determined by collective bargaining agreements between the county and workers unions.
Under Elrich’s proposal, non-uniformed county government employees represented by UFCW Local 1994 MCGEO would receive a 2.85% general wage increase in fiscal year 2027.
Career firefighters represented by the International Association of Fire Fighters Local 1664 would receive a 2.5% increase. Officers represented by the Fraternal Order of Police Lodge 35 would receive a 3% increase, according to county Chief Administrative Officer Rich Madaleno.
The recommended MCPS operating budget for fiscal year 2027 includes a 3.25% base salary increase for staff.
“I understand that this will be a tough pill to swallow for partners in labor who negotiated in good faith,” Fani-González wrote in the memo. “I would never suggest this change if there was another viable way that did not lead to us cutting direct services to the most vulnerable.”
Bethesda Today has reached out to the unions and the office of the county executive for comment on Fani-González’s proposal, but did not immediately hear back.
This story will be updated as more information becomes available.
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Originally published at Bethesdamagazine