The latest attempt to spur economic growth in Montgomery County would delay school and road construction for at least two years, county officials say. The proposed bill — co-sponsored by seven council members — would defer taxes charged to developers of new construction projects until after they have completed the projects.
“This is going to spur more and better projects, and that’s going to create more and better jobs,” said Councilman Hans Riemer, D-at large, who introduced the bill.
Those taxes make up 9.3 percent of the county funding for transportation construction and 10 percent of the county funding for school construction this fiscal year, said Jennifer Hughes, director of Montgomery County’s Office of Management and Budget. The bill would delay some of those projects, perhaps for several years.
Delayed projects could include Montrose Parkway East or the planned Clarksburg Cluster Elementary School.
Because the bill would take effect in February, it also would force the school system and Department of Transportation to make midyear changes to their construction plans or find new sources of funding, Hughes said. Development taxes are expected to bring in $20 million this year overall.
Riemer emphasized that the bill would not cut revenue, just delay it. In the course of the six years that make up the county’s construction budget, the county will make the same amount of revenue, if not more, he said.
But some say the projects can’t afford to wait.
“Anything that would reduce our ability to … modernize schools at a time when we’re severely overcrowded is highly objectionable,” said Montgomery County school board member Laura Berthiaume. “[School construction projects] can’t stand to wait a year or two.”
She suggested the council members visit Rock Creek Forest Elementary School in Chevy Chase “and see if that’s a facility that they’re proud of.”
“Any number of things could happen in six years,” said County Executive Ike Leggett. “Most times people want to get things either designed or built in the first two years.”
Others question whether the bill would achieve the intended goal.
Delaying taxes probably would not affect construction of commercial office buildings, said Steve Silverman, the county’s director of economic development. “The only thing that’s going to jump-start commercial office buildings are tenants.”
However, the bill might spur residential development, Silverman said.
The proposal comes shortly after Leggett asked the council and county-funded agencies to reduce the construction budget by $150 million over six years to reduce debt obligations.
The county is also required to spend at least $20 million on updating its facilities to comply with the Americans with Disabilities Act.
Because the council won’t know the specific projects affected until possibly January, Leggett suggested the council postpone its decision until then.
The council is scheduled to hold a public hearing on the bill Oct. 4.
