County Executive Marc Elrich released his recommended six-year capital improvement program and Fiscal year 2025 capital budget, which includes a six-year investment of $5.8 billion. That is a 2.3% increase from the prior year.
The budget includes increased funding for housing, storm water management and transportation and also eliminates some projects requested by various county departments.
The county council will review his recommendations as well as his recommended operating budget, which he expects to introduce in mid-March.
Both budgets are expected to be approved by late May.
Elrich included $50 million from the county’s reserve funds for affordable housing projects.
Other priorities include funding for several bus rapid transit lines, work to limit flooding throughout the county during heavy rains and millions for Montgomery County Public Schools (MCPS) and Montgomery College.
It also includes money to plan a library in Clarksburg.
The budget was carved keeping in mind inflation and fewer dollars from the county’s recordation tax due to a lagging housing market.
Council President Andrew Friedson called the recommended budget “the starting point for the Council’s analysis and deliberations.”
He added, “As Council president, my overarching goal is to strategically balance capital investments for schools, fire and police stations, roads, libraries, recreation centers and facility improvements in a fiscally responsible, transparent and sustainable way, while remaining focused on the financial pressures facing our taxpayers.”
During the news briefing, Rachel Silberman, lead analyst at the Office of Management and Budget, noted the MCPS requested increased funding amounting to $516 million in the first four years but not the remaining two years of the six-year capital budget.
During fiscal years 2025 to 2030, Elrich recommended spending $900 million on mass transit and $274 million for work on pedestrian and bike paths.
He called for $81 million for health and human services, $224 million for libraries and recreation, $251 million for public safety and $306 million for stormwater management.
🧵 Today, I released my recommened FY25-30 Capital Improvement Program & FY25 Capital Budget. Our $5.8 billion plan addresses critical capital needs and sets a path for our community's future.
Press release: https://t.co/XPDCbjp5y3
Explore the budget: https://t.co/fZ6DXrzEI7 pic.twitter.com/livDt2Faac
— County Exec Marc Elrich (@MontCoExec) January 16, 2024
Elrich suggested the MCPS look into ways to address capacity issues that don’t including construction projects.
His proposal includes adding high school wellness centers and mental health centers at Damascus, Paint Branch, Northwood, Woodward and Springbrook high schools. New model centers are slated at Crown, Blake and Magruder high schools.
The budget also includes $6o.5 million for Montgomery College to design and construct improvements for a fourth campus in the East County. The college’s budget for projects is 12% more than the previous plan.
Elrich’s recommendations include $580 million for bus rapid transit along Routes 355 and Veirs Mill Road. It also includes funds for resurfacing and rehabbing county roads and sidewalks.
Elrich called affordable housing “a critical priority,” and noted that his proposal includes almost $200 million in additional funding, $50 million of which will come from the county’s surplus fund, which grew considerably thanks partly to federal COVID relief.
The new Nonprofit Housing Preservation Fund was increased by $30 million.
Concerning the environment, the budget request includes $40 million for energy conservation in county-owned facilities, $153 million for flood management; and the purchase of $219 electric battery and hydrogen fuel cell buses.
Some culture and recreation projects include a new Western County Recreation Center and the continued preservation of Rockville’s historic Lincoln High School.
Economic development dollars are included to continue redeveloping North Bethesda, White Oak and the Glenmont Shopping Center.
The proposal also includes new fire stations in Clarksburg and White Flint and a new 6th District police station. Funding is including for the new Diversion Center, which enables public safety employees to respond to those in crisis.
Money is included for upgrading security cameras in county parking garages.
During the news briefing, Elrich called for Montgomery County to emulate some of the taxes used in Northern Virginia so that developers and owners of commercial properties will help fund some projects without county dollars. Elrich said he has spoken with both Gov. Wes Moore and Lt. Gov. Aruna Miller about getting the state to enact these taxes.
Northern Virginia implements transportation improvements, but Montgomery County is “hamstrung by constrained resources due to an antiquated tax structure. To move Montgomery County forward, we must identify new revenues and new approaches as Northern Virginia did to plan for regional growth, provide transportation choices, and increase accessibility,” Elrich said.
“We are totally paralyzed” without new funding sources, he said, noting the result could make Montgomery County a bedroom community for those who work in Northern Virginia and Washington, D.C.
