Montgomery County faces multi-million dollar revenue crisis
Montgomery County faces looming revenue crisis
2025 is wrapping up with some unwelcome financial news Montgomery County. Officials say over the next half-dozen years they’re facing a multi-million dollar revenue hole, and officials are warning there could be changes for county pursestrings on the way. FOX 5’s Tom Fitzgerald is live in Rockville with the details.
MONTGOMERY COUNTY, Md. - 2025 is wrapping up with some unwelcome financial news in Montgomery County.
Officials say over the next six years they’re facing a multi-million dollar revenue hole, and they’re warning that there could be changes for the county’s budget on the way.
Fixing the shortfall:
Officials are saying there could be budget cuts and even the elimination of some programs. But of course, the big question residents have is: are there going to be tax increases?
The news broke at the Montgomery County Council briefing, where leaders were looking at the county’s fiscal plan. County budget analysts are warning that they could lose $854 million in revenue over the next six years.
They are facing revenue drops from both property taxes and income taxes. Much of the blame was aimed at the federal government, even while the county continues to grow.
"Property taxes are projected to be less each of the years of the fiscal plans compared to June 2025, with a total reduction of close to $530 million. Income taxes are also projected to be less," Montgomery Council Deputy Budget Director Gene Smith said.
"We are being very vigilant about what is happening at the state level. The $1.4 billion deficit is very concerning," said Jennifer Bryant, the budget director for Montgomery County.
Big picture view:
The county’s new council president, Natali Fani-Gonzalez, told FOX 5 that she is going to do her best to avoid any tax hikes.
How are they going to do that? It’s likely residents will have to brace themselves for budget cuts and some programs being cut altogether, and while the news is not welcome, the county’s CEO says the county is well-positioned in what is a difficult economy.
"I’m going to do my best not to increase and I’m looking forward to seeing what the county executive is proposing to us," Fani-Gonzalez said.
"At this moment, with what we know about the local economy, we’re projecting a little bit less in property taxes, and a little less in income taxes," Montgomery County Chief Administrative Officer Rich Madaleno said.
The real wild card in all of this is what impact will the Montgomery County Public Schools budget have on taxpayers?
The county executive’s proposed budget is expected in March, and the council will likely vote in May.