MoCo Council meets this week for straw votes on fiscal year 2027 budget items

Deadline for final approval of county operating and capital spending is June 1

May 5, 2026 10:30 a.m.

The Montgomery County Council this week is meeting to discuss and take preliminary votes on various items in the county’s operating and capital budgets for fiscal year 2027, which begins July 1.

In March, County Executive Marc Elrich (D) unveiled his $8 billion recommended operating budget for fiscal year 2027, which included a 6% dedicated property tax rate increase to fund Montgomery County Public Schools (MCPS).

A majority of the council, including all three councilmembers seeking the Democratic nomination for county executive next month, pledged not to support a property tax rate increase this year — a decision that would decrease projected revenues by $164.6 million.

As of Monday morning, council committees had recommended a total of $10.3 million in reductions to Elrich’s recommended budget, according to a council staff report.

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With no property tax rate increase and other recommended changes to the county tax structure, that means the council will need to find an additional $152.1 million in savings to balance the budget. The council has until June 1 to take final action on the capital and operating budgets for fiscal year 2027.

The council will meet at 9:30 a.m. Tuesday, Wednesday and Thursday in the Stella Werner Council Office Building in Rockville to continue its budget deliberations. Here are some straw votes to watch.

MCPS operating budget

On Tuesday afternoon, the council will discuss and take a preliminary vote on the $3.79 billion operating budget requested by MCPS for fiscal year 2027. The district’s request represents a 5% increase over current spending.

The county’s contribution would increase from $2.34 billion to $2.52 billion under the district’s recommended spending plan, which Elrich’s proposed operating budget would fully fund. The district’s plan includes staff salary increases and a goal of reducing elementary school class sizes by at least one student.

Solid waste service charges

On Wednesday, the council will discuss and take a preliminary vote on Elrich’s proposed solid waste service charges for fiscal year 2027.

Elrich has proposed using the operating budget as a vehicle for shutting down the county’s Dickerson incinerator, otherwise known as the Resource Recovery Facility, and replacing it with a more sustainable advanced waste processing facility.

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Under his proposal, annual disposal fees for a single-family home that receives both recycling and solid waste collection would increase from the current rate of about $548 to about $562 in fiscal year 2027, according to a council staff report. For a multi-family unit, the fee would increase from about $30 to about $33. For non-residential users, the fee would increase from about $1,090 to about $1,196.

County budget documents say Elrich’s recommended solid waste fees and expenditures are “aligned” with the policy decision to close the Dickerson incinerator. But Cindy Peña, a spokesperson for the county’s Environment Department, has said solid waste charges would increase for all payers regardless of whether the council supports the closure of the facility.

Fani-González’s budget framework calls for maintaining “current operations” for fiscal year 2027. According to a council staff report, the “current operations” option would involve a $4.4 million increase over current spending on recycling and resource management. Elrich’s plan represents an $87 million increase over current spending.

Nonprofit inflationary adjustment

On Thursday, the council will consider and hold a preliminary vote on the proposed inflationary adjustment for nonprofits with whom the county contracts to provide services.

As part of his operating budget proposal, Elrich recommended a 2.5% inflationary increase for all nonprofit contracts — $297,079 over current spending but much less than the 8% increase requested by nonprofit service providers.

Councilmember Will Jawando (D-At-large) last month proposed an income tax structure that would keep the income tax rate the same at 3.2% for most county residents while increasing it to 3.3% for those making more than $500,000 annually. Elrich called for raising the income tax rate to 3.3% for all county residents.

Jawando said his proposed income tax structure would generate $8 million in additional fiscal year 2027 tax revenue that could be put toward a 7.5% inflationary increase for nonprofit service providers.

Fani-González has proposed four income tax brackets with rates ranging from 2.5% for those making $50,000 or less per year to 3.3% for those making more than $300,000 annually.

She said her income tax structure would generate an additional $50 million in revenue for fiscal year 2027, which she proposes the county use to help pay down its projected structural deficit of $257.3 million in fiscal year 2028. A structural deficit occurs when a government’s spending outpaces its revenues.

On May 12, the council will consider the Government Operations Committee’s recommendation to adopt a progressive income tax structure alongside Elrich’s proposed income tax rate increase for fiscal year 2027.

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Originally published at Bethesdamagazine