Despite incoming Montgomery County Executive Marc Elrich’s repeated pledge to not raise taxes, doing so may be necessary in order to avoid a budget shortfall during the next six years, according to a new report from the Montgomery County Office of Legislative Oversight.
The County Council is scheduled to discuss the report at its meeting Tuesday.
The report, which was sent to the council last week from county legislative analysts Craig Howard and Aron Trombka, states that 88 percent of county tax revenue comes from property and income tax. Income taxes can’t be raised unless state law is changed, and property taxes can only be raised above the charter limit if the nine-member council votes to do so unanimously.
“The County is experiencing significant revenue pressures and has few options to address these pressures within the current tax structure,” the report states.
According to the report, the county would be dealing with a budget shortfall of more than $100 million in the current fiscal year—if not for a significant tax rate increase passed by the council two years ago.
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