Stumbled upon this while searching for something else related to Montgomery County Executive Marc Elrich, but here is a devastating, nearly accurate assessment of MoCo’s (and to a degree, Maryland’s) current budget and economic situation in 2023, a full twelve years and six months after this was written up by Adam Pagnucco, now of the excellent and detailed https://montgomeryperspective.com.
Actually it is arguably worse now because inflation is that much higher and the total debt of the County government has gone up, not down – and interest rates are much much higher then in 2010. Any new debt raised by the County to perhaps pay off older debt or ‘buy time’ will incur higher interest / debt service costs. Those debt service costs mean less available in-year funds for the new schools, parks, bridges, roads and more.
Still, it is interesting to see how the awful can-kicking has gone on for 12+ years by people like Marc Elrich and long-time Council buddies like Craig Rice. Anybody for shortening Council terms to just a single four year stint so these folks can do less damage? Or how about just a part-time, volunteer Council that receives no pay?
The maintenance of effort law Adam P is referencing here is now even more expensive for Maryland Counties. Per Fitch Ratings:
In February 2020, the legislature [Democrats, including many from Montgomery County, MD] overrode [Governor Hogan] vetoes to enact House Bill 1300 (HB1300) and HB732. HB1300 implemented and provided initial funding for key recommendations of the Commission on Innovation and Excellence (also known as the Kirwan Commission), which was empaneled to address education policy and funding. The enacted plan gradually increases state and local education aid to $4 billion by 2033.
Yeah, increased on the backs of Maryland Counties – which like MoCo are seeing economic stagnation and decline now that the fed government sugar high from Pandemic spending is drying up. See this headline from The Washington Post, which broke this just today, March 15, 2023, about neighboring Prince George’s County:
Sound familiar?
Tax – spend – can kick and then overpay. Tax some more – spend – see the decline in motion and then blame others.
It has all been done before, at the state – and County – level. Just last week the [Maryland] House Republican Caucus released a statement saying in part:
“We hope General Assembly will take its new budgeting powers seriously and reign in spending. Past is often prologue, and we have seen this movie before — a new Democratic governor spends through surpluses just as the economy tanks, leading to nearly a decade of tax and fee increases.”
Indeed, Maryland and MoCo taxpayers and middle class families have. And sequels are rarely better then the original flick.
Related posts:
Economic Storm Clouds Are Gathering, But the Montgomery County Council Seems Pre-Occupied with Other (National) Topics
People, Even “Labor Democrats”, Are Slowly Waking Up to the Consequences of Ideologues in Power in Montgomery County
A Property Tax Hike, But By WSSC? Fitch Ratings Revision for WSSC Shows What Could Be in Store for MoCo Residents