Montgomery County Council to Hold Committee Meetings on Monday, April 24

Per Montgomery County: The Government Operations and Fiscal Policy (GO) Committee will meet on Monday, April 24 at 9:30 a.m. to review Bill 17-23, Taxation – Recordation Tax Rates – Amendments. In addition, the committee will review the Recommended FY24 Operating Budgets for the Department of Finance, Risk Management NDA, Debt Service, the Office of Racial Equity and Social Justice, the Office of the Inspector General (OIG) and the Office of Management and Budget (OMB). The members of the GO Committee include Chair Kate Stewart, Council Vice President Andrew Friedson and Councilmember Sidney Katz.

The joint Education and Culture (EC) and Health and Human Services (HHS) Committee will meet at 10 a.m. to review the Recommended FY24 Operating Budgets for programs within the Department of Health and Human Services (DHSS) related to early care and education, Linkages to Learning, High School Wellness Centers, High School Cluster Projects and private partnerships. In addition, the Committee will review an $850,000 FY23 supplemental appropriation for School-Based Health and Linkages to Learning Centers.

The members of the EC Committee include Chair Will Jawando and Councilmembers Gabe Albornoz and Kristin Mink.

The members of the HHS Committee include Chair Albornoz and Councilmembers Dawn Luedtke and Laurie-Anne Sayles.

The Transportation and Environment (TE) Committee will meet at 1:30 p.m. to review the Recommended FY24 Operating Budget for WSSC Water and the Utilities Non-Departmental Account (NDA). In addition, the Committee will review a more than $8 million FY23 supplemental appropriation to the Utilities NDA.

The members of the TE Committee include Chair Evan Glass and Councilmembers Marilyn Balcombe and Kate Stewart.

The HHS Committee will also meet at 1:30 p.m. to review items within the Recommended FY24 Operating Budget for DHHS, including Behavioral Health and Crisis Services, Children, Youth and Family Services, Services to End and Prevent Homelessness and the Guaranteed Income NDA.

More detail on each agenda item is provided below.

Bill 17-23, Taxation – Recordation Tax Rates – Amendments

Review: The GO Committee will review Bill 17-23, Taxation – Recordation Tax Rates – Amendments. The legislation would increase the rate of the recordation tax levied under state law for certain transactions, allocate the revenue received from the recordation tax to capital improvements for schools and to the Montgomery Housing Initiative Fund (HIF), and generally amend the law governing the recordation tax.

The recordation tax applies to the principal amount of debt secured by a mortgage or deed of trust when a house or building is purchased or when a mortgage is refinanced. There are three elements of the recordation tax: the base rate, the school increment rate and the recordation tax premium rate.

The base recordation rate is $2.08 for each $500 on the sale price or, if refinancing, on the additional amount borrowed above the remaining principal. This rate would remain the same under the proposed legislation and the revenue would still be allocated to the County’s general fund.

Bill 17-23 would increase the school increment rate from $2.37 to $3.79 for each $500, effective July 1, 2023. This additional funding would be allocated to Montgomery County Public Schools’ capital projects. The bill would also increase the recordation tax premium from $2.30 to $3.45 for each $500, effective on July 1. The premium applies to the cost of a property or a refinancing that is in excess of $500,000.  These funds have been used for monthly rental assistance and to make housing units affordable for seniors with low incomes.

Additionally, Bill 17-23 would add a new premium rate of $1.15 for each $500 or fraction of $500 of the amount that exceeds $1 million. This additional revenue would be allocated to the Montgomery Housing Initiative and be split between County government capital projects and rental assistance for individuals with low and moderate incomes.

The lead sponsor of the bill is Councilmember Mink. Councilmember Jawando is a cosponsor.

Department of Finance FY24 Operating Budget and Risk Management NDA

Review: The GO Committee will review the FY24 Recommended Operating Budget for the Department of Finance, which is more than $112 million. This is an increase of $8.6 million or a more than 8.3 percent increase from the FY23 Approved Budget. The Finance Department’s manages financial operations and fiscal policies in addition to safeguarding public assets. The department’s recommended budget includes expenditures in the general fund and the self-insurance internal service fund, which is mostly supported by contributions from the County Government. The self-insurance fund also includes revenue from other modest sources including investment income.

The Risk Management NDA’s recommended funding for FY24 is more than $36 million, which is an increase of $731,826 or 2.8 percent from FY23.

Debt Service FY24 Operating Budget

Review: The GO Committee will review the FY24 recommended expenditures for debt service, which is more than $468 million. This is an increase of more than $4.4 million or a one percent increase from the FY23 expenditures. The County’s general fund supports more than 78 percent of the recommended FY24 expenditures, with the remaining expenditures supported from other revenues or tax supported funds. The FY24 expenditures include the annual debt service of all outstanding G.O. bonds, long- and short-term lease payments and other long-term debt obligations. In FY24, tax supported debt service expenditures represent 7.4 percent of the total recommended FY24 tax supported budget.

Office of Racial Equity and Social Justice FY24 Operating Budget

Review: The GO Committee will review the FY24 Recommended Operating Budget for the Office of Racial Equity Social Justice, which is nearly $1.4 million. This is an increase of $122,539 or a 9.6 percent increase from the FY23 Approved Budget. The mission of the Office of Racial Equity and Social Justice is to establish Racial Equity and Social Justice (RESJ) as a core principle in all County decision making. The office works with all County departments to ensure race is not a predictor of outcomes for Montgomery County residents. The office also assists departments in examining their own policies, procedures and practices as well as developing community engagement plans.

Office of the Inspector General FY24 Operating Budget

Review: The GO Committee will review the FY24 Recommended Operating Budget for the OIG, which is more than $3 million. This is an increase of $534,921 or a more than 21 percent increase from the FY23 Approved Budget. The mission of the OIG is to promote the effectiveness and efficiency of programs and operations of County government and independent County agencies, prevent and detect fraud, waste and abuse in government activities, and proposes ways to increase the legal, fiscal and ethical accountability of County government and County-funded agencies.

Office of Management and Budget FY24 Operating Budget

Review: The GO Committee will review the FY24 Recommended Operating Budget for OMB, which is more than 7.2 million. This is an increase of $362,998 or a more than 5 percent increase from the FY23 Approved Budget. OMB offers a broad-based, objective perspective on public policies, fiscal policies and performance management to the County Executive, County Council and other County partners.

Health and Human Services: Early Care and Education (Early Childhood Services, Early Care and Education Initiative NDA, and Children’s Opportunity Alliance NDA), Child Care Subsidies, School Health Services, Linkages to Learning, High School Wellness Centers, High School Cluster Projects and Public Private Partnerships

Review: The joint EC and HHS Committee will review FY24 Operating Budgets for programs within DHHS related to early care and education. These include the Early Care and Education Initiative NDA, Children’s Opportunity Alliance NDA, Child Care Subsidies, School Health Services, Linkages to Learning, High School Wellness Centers, High School Cluster Projects and Public Private Partnerships.

The staff report will be available on Monday, April 24.

FY23 Supplemental Appropriation: School-Based Health and Linkages to Learning Centers $850,000

Review: The joint EC and HHS Committee will review an $850,000 supplemental appropriation for School-Based Health and Linkages to Learning Centers, which would provide funds to build a Linkages to Learning suite in conjunction with major school construction at Greencastle Elementary School. These programs provide accessible health, mental health, social and educational support services to at risk children and their families. School-based health centers operate as part of the Linkages to Learning program and provide primary healthcare to students and their siblings and for children enrolled in Care for Kids who live within the zip code served by the school. Host schools are selected based on criteria recommended by the School Based Health and Wellness Center Advisory Group and the Linkages to Learning Advisory Group.

WSSC Water FY24 Operating Budget

Review: The TE Committee will review the proposed FY24 Operating Budget for WSSC Water, which is $931.2 million. This is an increase of more than $66 million or a more than 7 percent increase from the FY23 Approved Budget. WSSC Water provides public water and sewer services to 1.9 million residents in a sanitary district covering nearly 1,000 square miles in Montgomery County and Prince George’s County. WSSC Water has three reservoirs and two water treatment plants that provide nearly 162 million gallons of drinking water per day and maintains seven wastewater treatment plants. The organization also maintains approximately 6,000 miles of water mains and over 5,700 miles of sewer mains. WSSC Water’s governing board consists of six commissioners, three of which come from Montgomery County and three from Prince George’s County.

Utilities Non-Departmental Account and FY23 Supplemental Appropriation: Utilities NDA, $8,286,672

Review: The TE Committee will review the FY24 Recommended Operating Budget for the Utilities NDA, which is more than $33.8 million. This is an increase of more than $11 million or a 49 percent increase from the FY23 Approved Budget. The FY24 Recommended Budget includes County government utilities expenditures for both tax and non-tax supported operations. Tax-supported utilities expenditures related to the General Fund departments are budgeted in the Utilities NDA, while utilities expenditures related to special fund departments are budgeted in those funds. The allocation of these utility expenses is approximately 75.2 percent for electricity, 6.9 percent for natural gas, 6.4 percent for water and sewer and 11.5 percent for renewable energy and other expenses.

The committee also will review a more than $8 million FY23 Supplemental Appropriation to the Utilities NDA. The supplemental appropriation is needed to cover increased costs of electricity compared to what was assumed in the FY23 Approved Operating Budget. The FY23 Operating Budget assumed usage levels 10 percent below the approximately 130 million kwh of electricity the County has consumed annually on average in FY21 and FY22. The estimated usage based on the first nine months of FY23 is slightly above usage levels in FY21 and FY22.

Behavioral Health and Crisis Services

Review: The HHS Committee will review the proposed FY24 Operating Budget for Behavioral and Health Crisis Services within DHHS, which is more than $53 million. This is an increase of more than 2.3 million or a more than 4.6 percent increase from the FY23 Approved Budget. Behavioral Health and Crisis Services promotes the behavioral health and well-being of Montgomery County residents. The program works to promote mental wellness, prevent substance abuse and suicide and to ensure access to a comprehensive treatment and recovery system of effective services and support for children, youth and families, adults and seniors in crisis or with behavioral health needs.

Children, Youth and Family Services

Review: The HHS Committee will review the proposed FY24 Operating Budget for Children, Youth and Family Services within DHHS, which is more than $119 million. This is an increase of $4.2 million or a 3.7 percent increase from the FY23 Approved Budget. The FY24 budget is organized into eight program areas that provide protection, prevention, intervention, treatment and financial assistance services for children and their families. These program areas include administrative needs and funding for child and adolescent school and community-based services, child care subsidies, early childhood services, Linkages to Learning, the Office of Eligibility and Support Services and positive youth development services.

Services to End and Prevent Homelessness

Review: The HHS Committee will review the proposed FY24 Operating Budget for Services to End and Prevent Homelessness within DHHS, which is more than $66 million. This is an increase of more than $21 million or 46 percent from the FY23 Approved Budget.  The budgeted items include services for coordinated entry, healthcare, services for families, services for single adults, the Housing Initiative program, the Interagency Commission on Homelessness, permanent supportive housing, prevention and rapid rehousing.

Guaranteed Income NDA

Review: The HHS Committee will review the proposed FY24 Operating Budget for Guaranteed Income Pilot NDA within DHHS, which is more than $3.1 million. This is an increase of $734,843 or a more than 28 percent increase from the FY23 Approved Budget. The Montgomery County Guaranteed Income Pilot (GIP) is one of several national pilots designed to provide a regular, unrestricted, guaranteed income supplement to participants. The pilot provides $800 per month for 24 months to 300 individuals or households. The pilot population consists of 100 participants who are transitioning from homelessness and 200 participants with at least one child or dependent who had previously sought assistance from the County during the COVID-19 pandemic.

The Committee meeting schedule may change from time to time. The current Council and Committee agendas, Council staff reports and additional information on items scheduled for Council review can be viewed at: http://www.montgomerycountymd.gov/COUNCIL/ondemand/index.html.

Council and committee meetings are streamed live on the Council’s web page via YouTube and on Facebook Live and can be watched on County Cable Montgomery on Xfinity/RCN 6 HD 996/1056, Fios 30, and on the CCM live stream.