Montgomery County Executive Ike Leggett recommended an 8.3 percent increase to the property tax rate in a budget proposal Monday, along with cuts to county jobs and services, saying Montgomery had been living beyond its means.
The $4.3 billion county budget for the fiscal year that starts in July increases spending by 3.2 percent, which Leggett said was the lowest increase by county government in 12 years, given a projected $297 million budget deficit. His plan also called for cutting 225 county jobs, increased participation costs for many county recreation programs, charging insurance companies a fee for ambulance trips and eliminating a police recruit class.
Leggett, who as a council member authored a measure that prohibits property tax increases greater than the rate of inflation unless seven of nine council members approve it, said the tax increase was an extremely difficult decision for him.
“Given the state of the times … it was something that was necessary for us to do,” Leggett said, adding he had increased the property tax credit from $613 to $1014 to make the rate change more progressive.
Some county school board members were upset Leggett approved only 98 percent of the school system’s requested funding, warning the reduction could force cuts in classroom positions.
Leggett also proposed offering 1,000 county employees a $25,000 incentive to retire early, which he said analysts expect about 100 workers to accept.
Gigi Godwin, president of the Montgomery County Chamber of Commerce, said the county’s budget should be considered in light of “the slowdown in the national economy.”
“They can only spend what they have coming in,” Godwin said. “It’s important to us that quality-of-life issues are sustained like public safety and education. A lot of folks that do business here can do business anywhere.”
Rockville resident Subhash Gupta said Leggett’s proposal, combined with last fall’s 20 percent increase in the state sales tax and recent recommendations to increase water and sewer rates, make it difficult to continue to live in Montgomery County.
“I wouldn’t tell you we’d move out because that’s a lie,” Gupta said. “My wife works in Virginia though and I work in Prince George’s county. There is no reason we have to be here. We do have choices and it does cross my mind.”
