The Montgomery County Council on Tuesday passed a spending plan for the next six years, which officials say is needed to avoid shortfalls becoming the new standard for the affluent suburb.
The first such blueprint in the history of the County Council calls for structurally balanced budgets through fiscal 2016 — or budgets not reliant on one-time funding for recurring costs. Reserves would grow from 6 percent to 10 percent by the end of the decade.
Maryland’s so-called economic engine turned to about $250 in new taxes for residents, furloughs of all non-school employees, slashed services and layoffs in filling a nearly $1 billion budget gap. The county is also in danger of losing its AAA bond rating.
Projected spending growth
» Fiscal 2012: 0.1 percent
» Fiscal 2013: -1.3 percent
» Fiscal 2014: 2.2 percent
» Fiscal 2015: 3.8 percent
» Fiscal 2016: 4.7 percent
Still, it’s one thing to approve the plan and another altogether to implement it. Compliance is not mandatory, and the proposal is subject to fluctuations in revenue — particularly income tax receipts. “This portends real shrinkage in coverage for other agencies,” said Councilman Marc Elrich, D-at large. “I’m really concerned this doesn’t seem tenable. I think we’re going to have an awful lot of rethinking.”
“This portends real shrinkage in coverage for other agencies,” said Councilman Marc Elrich, D-at large. “I’m really concerned this doesn’t seem tenable. I think we’re going to have an awful lot of rethinking.”
Under current projections, spending for county agencies would grow 0.1 percent in fiscal 2012 and would drop the following year to coincide with energy tax increases scheduled to expire.
Reserve levels would grow to 10 percent by the end of the decade.
However, supporters say they have no choice but to draw a hard line on spending, particularly with the watchful eyes of creditors.
“We’re really facing and conveying a reality,” said Council President Nancy Floreen. “There are going to be some bumpy spots in this. We’re going to convey this to all the players.”
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