Montgomery County Council approved $7.9 billion budget, rejected property tax hike | The Locally Times
The Council voted May 21 to hold property tax rates steady and implemented a progressive income tax structure.
## Budget Approval The Montgomery County Council voted May 21 to approve a $7.9 billion operating budget for the 2027 fiscal year. The final plan rejected the County Executive’s proposed 6.1% property tax increase and replaced a proposed 3.3% income tax hike with a progressive income tax structure. The budget limits government spending growth to 4.4%, a reduction from the 5.7% growth rate proposed by the County Executive. ## Tax Impact The new tax structure changes tax liabilities based on income and property ownership. A renter earning $50,000 will receive $250 in tax relief, compared to a $50 increase under the County Executive’s original proposal. A homeowner earning $150,000 with a home assessed at $645,000 and no Income Tax Offset Credit will receive a $450 tax break, rather than the $506 tax increase proposed by the County Executive. The budget maintains the Homestead Tax Credit and the Senior Property Tax Credit. ## Education Funding The budget allocates $3.7 billion to Montgomery County Public Schools, an increase of $143.7 million over the previous year. This allocation exceeds the state-mandated Maintenance of Effort level—the minimum funding required by state law to maintain per-pupil spending—by $156.6 million. The school system serves 156,000 students across 211 schools. Since the 2017 fiscal year, the Council has provided $956 million above state-mandated minimums. While the budget summary details these allocations, the records do not specify which departments or programs faced cuts to offset the $143.7 million increase in school funding. The Council has not released a detailed list of departmental spending reductions as of June 20. ## Key Questions **How much will my taxes change under the new budget?** A renter earning $50,000 will receive $250 in tax relief, while a homeowner earning $150,000 with a $645,000 home will receive a $450 tax break. **Did the Council approve the proposed property tax increase?** No, the Council rejected the County Executive’s proposed 6.1% property tax increase and held the property tax rate steady. **How much is the county spending on public schools this year?** The budget allocates more than $3.7 billion to Montgomery County Public Schools, which is $143.7 million more than the previous year.