Montgomery County Council preliminarily approves FY25 operating budget, reconciles CIP and schedules public hearing on $2M resurfacing appropriation

The Montgomery County Council on May 16 took unanimous straw votes to preliminarily approve the FY25 operating budget, adopt a capital improvements program (CIP) reconciliation scenario and introduce a $2 million FY24 special appropriation to accelerate residential rural road resurfacing.

"The $7,100,000,000 operating budget before us today is a reflection of compromise, collective values, and the complex needs of our growing community," Council President Friedson said as he summarized the council’s priorities, including funding for schools, public safety, affordable housing and climate initiatives.

Budget staff told the council the reconciliation package addresses a six‑year CIP gap that had grown to roughly $227,000,000 after recent revenue write‑downs, state allocations and schedule adjustments. Staff said the reconciliation preserves the council’s six‑year spending affordability guideline of $1,700,000,000 and maintains $165,000,000 in MCPS infrastructure funding across the period.

The council voted by unanimous straw vote to accept the CIP reconciliation as presented. Councilmember Balcom moved the motion and Councilmember Lukey seconded it; the council president called the voice vote "unanimous." Budget staff said that if the council approves the package in final action it will reconcile the FY25–30 CIP.

On the operating side, staff reported a reconciliation list totaling $64,685,202 (described in the staff report as representing 56% of about $115,000,000 in new and enhanced program requests). Staff also reported FY25 tax‑supported spending of about $6,470,000,000 and explained that today’s straw votes would allow staff to prepare budget resolutions for final action next week. Vice President Stewart said the council used reserves carefully to accommodate school system requests and added dedicated funding for LGBTQ+ services and related health services.

The council also took unanimous straw votes on multiple other T&E items earlier in the meeting: keeping FY25 transportation fees, charges and fares unchanged; adopting FY25 solid waste service charges with the staff‑described residential increases and a small nonresidential decrease; and approving the FY25 Water Quality Protection equivalent residential unit rate of $136.50 (an $10.50, 8.3% increase over FY24). The council likewise supported the WSSC system development charge recommendation to hold rates at FY24 levels while raising the maximum allowable rate by 2.3% as permitted under state law.

The clerk announced an addition to the agenda, item 6.5: an introduction of a special appropriation to the FY24 capital budget and an amendment to the FY23–28 CIP for Montgomery County Department of Transportation residential rural road resurfacing in the amount of $2,000,000, funded by GEO bonds. Council members and staff clarified that the appropriation is an acceleration of existing FY24 funds, not new funding, and a public hearing and action are scheduled for June 11, 2024 at 1:30 p.m.

Councilmembers who spoke during the wrap‑up praised staff work and highlighted funding decisions. Several members emphasized the council’s investments in Montgomery County Public Schools — the council’s packet and remarks noted funding equal to about 99.2% of the Board of Education’s request — while others warned that the net package still requires difficult tradeoffs. One councilmember warned that, at the adopted level, MCPS will face real program and staffing reductions and urged ongoing oversight and transparency.

Next steps: staff will draft the formal budget resolutions reflecting today’s straw votes and return them for final action at the council’s next meeting, which the council announced is scheduled for next Thursday, May 20, when final votes will be taken. The clerk also scheduled the public hearing on the resurfacing appropriation for June 11, 2024.