Montgomery County’s coffers are roughly $85 million short of already bleak projections, budget analysts revealed Monday.
The new hole is tied primarily to dwindling income and property tax returns. Income tax receipts are $30 million less than projected and property tax revenue is $13.5 million less than expected — even though the suburb’s unemployment rate dropped from 5.7 percent to 5.2 percent.
Officials say the property tax dropoff coincides with a surge of reassessments filed in the wake of sagging home prices. Residents can challenge their assessments annually.
County Executive Ike Leggett estimates the county will be forced to close a more than $300 million shortfall over the next year and a half.
