It’s official: MoCo Council adopts operating budget, capital improvements program for fiscal year 2027

Funding for MCPS is $36M short of district request; Taylor to propose cuts at Thursday school board meeting

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May 21, 2026 11:51 a.m. | Updated: May 21, 2026 11:52 a.m.

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The Montgomery County Council on Thursday officially voted to approve the county’s $7.9 billion operating budget and $6.3 billion six-year capital improvements program for the coming fiscal year.

The council-approved budget for fiscal year 2027, which begins July 1, includes a $143 million year-over-year spending increase for Montgomery County Public Schools (MCPS).

But that amount is still $36 million short of what the district requested from the county — meaning hundreds of staff positions could be eliminated as the Board of Education works to balance the MCPS budget in the weeks ahead.

MCPS Superintendent Thomas Taylor is expected to formally propose position cuts at Thursday’s school board meeting. Unlike during previous council meetings on the proposed fiscal 2027 spending, those protesting possible MCPS cuts were not in attendance.

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The council voted 9-2 on Thursday to approve the operating budget for next fiscal year, which does not include the 6.3-cent property tax rate increase recommended by County Executive Marc Elrich (D) to fully fund schools next fiscal year. The vote to approve the capital spending plan was unanimous. Fiscal year 2027 begins July 1.

Each member’s vote on Thursday was unchanged from their straw vote on the operating budget package last week.

The council-approved operating budget includes a progressive income tax plan to raise the local income tax rate from 3.2% to 3.3% for filers making $150,001 or more annually and lower the income tax rate for everyone making less. Elrich had proposed a uniform 0.1% income tax rate hike for all filers regardless of yearly earnings.

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Though the property tax rate will remain the same in fiscal year 2027, some homeowners will still have a higher property tax bill next year due to the council’s decision to eliminate a $692 tax credit available to filers who claim their home as their principal residence. 

Eliminating the property tax credit, called the Income Tax Offset Credit (ITOC), freed up money to support the progressive income tax plan.

Elrich has been vocal in his opposition to the council’s operating budget plan, but his ability to make changes — particularly to tax rates set through resolutions — is limited. He told reporters during his virtual media briefing Wednesday that he might consider line-item vetoes for some items in the council-approved budget, but declined to specify which ones.

If Elrich were to veto any line item in the council-approved budget, the council would have until June 30 to override it. The council plans to be in recess through June 8.

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Originally published at Bethesdamagazine