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Spending Reductions in Montgomery County, Maryland

By
Industry Observer with Retired

Spending Reductions in Montgomery County, Maryland

 

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Montgomery County Executive Marc Elrich has transmitted to the County Council a revised operating budget spending plan that calls for more than $66 million in reduced spending, including $38.7 million in reductions from the Fiscal Year 2021 Operating Budget and $27.5 million in reductions from the FY21-26 Capital Improvements Program (CIP).

The County Executive had asked all department and agency directors to submit suggested reductions to their budgets of at least six percent, but his budget reduction plan did not make across the board cuts. At this stage, the reductions do not include Montgomery County Public Schools (MCPS), which is still assessing potential cost reductions as it works toward finalizing plans for the coming school year.

“As we move forward, we must recognize there are still several unknown variables that will impact County government finances, including the lasting impact of COVID-19 on the County’s economy and our tax revenues, the need to maintain funds in reserve to address another potential wave of COVID-19 and whether there will be additional relief from the Federal government,” said County Executive Elrich.”

The reductions, when approved by the Council, would come from the $5.8 billion operating budget and the $4.4 billion six-year CIP that went into effect on July 1. The Council approved the budgets after reviewing the recommended operating budget the County Executive presented on March 16.

 

Press Release

 

 
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Hydrangea, Kentlands Photowalk, Gaithersburg, Maryland USA
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Photograph by Roy Kelley
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Posted by

Roy Kelley, Retired, Former Associate Broker, RE/MAX Realty Group

Gaithersburg, Maryland  

Roy Kelley
Retired - Gaithersburg, MD

Montgomery County Executive Marc Elrich and County Council President Sidney Katz have announced that the County has maintained its “Triple-A” bond rating for 2020 from the three major Wall Street bond rating agencies. The County continued its status as a top-rated issuer of municipal securities, with the highest credit rating possible for a local government. The rating is significant amidst the COVID-19 health crisis.

Moody’s Investors Service, Inc., Standard & Poor’s and Fitch Ratings all affirmed the Triple-A rating—the highest achievable—for the County. Montgomery County has earned Triple-A ratings from Moody's Investors Service, Inc. every year since April 1973 (48 consecutive years); from Standard & Poor’s every year since 1976 (45 consecutive years) and from Fitch every year since 1991 (30 consecutive years). 

Triple-A bond ratings enable Montgomery County to sell long-term bonds at the most favorable rates, saving County taxpayers millions of dollars over the life of the bonds. The ratings also serve as a benchmark for numerous other financial transactions, ensuring the lowest possible costs in those areas as well.

 

Press Releas

Jul 24, 2020 07:25 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Roy - reduced spending is a key term taking place in many organizations as well as conversations being held across the country(if not the world).  

Jul 24, 2020 07:33 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Roy,  I wonder about the schools taxes in areas and I would about budgets because not collecting sales taxes in state.

 

Jul 24, 2020 07:46 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Roy... it was only a matter of time before spending had to be lowered... can't spend what you don't have.

Jul 24, 2020 08:45 AM