County Executive Ike Leggett sent the following letter to county employees last night.
Dear Fellow County Employee:
On behalf of nearly one million Montgomery County residents, I want to thank you for all that you are doing on behalf of our County.
Montgomery County is a great place to live, work, play, raise a family, and grow a business. Your professionalism, dedication, and commitment to excellence help make Montgomery County one of the finest communities in the nation.
You are a valued member of Montgomery County’s team. That’s why I want to share directly with you information about the enormous challenges we are facing.
The County must resolve our current economic difficulties, caused by the housing slump, the national recession, and the State’s budget crisis. As with all local jurisdictions, Montgomery County faces a large budget gap between our projected resources and the services we expect to provide for the next fiscal year that begins July 1, 2009. We now expect that shortfall to be at least $500 million. And this figure does not include possible reductions in state aid for Montgomery County that have yet to be decided. The state has just doubled its previous estimates of its shortfalls for this fiscal year and next. Also, we do not yet know when we’ll see the “bottom” of our nation’s economic crisis.
Last year, County residents received significant state and local tax hikes. With the hardships many families are facing, we cannot impose a further burden on them. That’s why I have pledged not to increase taxes again. This means that the County’s budget recommendations for next year, which I will release in March, will include substantial reductions in projected spending.
No one could have anticipated the extent of this current economic crisis, but you have been a partner over the first two years of my administration as I have worked diligently to reduce County government agency spending and to provide a budget plan that is sustainable not only for the short term, but for our long term futures as well. From a 14 percent increase in the year before I took office, I reduced the budget increase to 6.7 percent and, then, last year, to 1.5 percent. I have initiated a hiring freeze and eliminated 225 positions. My current six-year capital budget increased by only 1 percent compared to an average of 25 percent for each of the previous two cycles.
But these measures are not nearly enough in this current economic crisis.
When the County Council passed the fiscal year 2009 budget last May, there was an $8 million gap remaining for resolution this year. Two million dollars of that gap will be met through better-than-expected savings from our early retirement program and from limiting senior management pay. I have also proposed two possible furlough days for all County government employees to save the remaining $6 million. In the near future, I will inform you whether furlough days are necessary for this current year. I, as well as all my senior managers and department directors, will be furloughed if County employees are asked to make such sacrifices.
The remaining budget gap we are projecting for next year is still daunting. The County Council has just approved $33 million in reductions that I proposed to help reduce spending for this fiscal year. This savings would be applied to help with our $500 million gap for FY 2010. Still, we have a long way to go to make up the projected shortfall, which may further increase due to additional state budget reductions and the ongoing national economic downturn.
Most recently, I asked all County departments for a second round of reductions from the original proposed budget levels for the next fiscal year. I am asking for a 7 percent reduction in non-Public Safety tax-supported departments, 5 percent for proprietary funds, and 3.5 percent for Public Safety departments and the Department of Health & Human Services.
I know that none of this is easy for you and your family. But Montgomery County is not immune from the current economic downturn.
I’m confident our County will weather these difficult challenges – and ultimately come out far stronger. It won’t be easy, but working together we can make it happen.
I will stay in regular touch with you as things develop. And I hope you won’t hesitate to contact me at ocemail@montgomerycountymd.gov.
I wish you and yours a happy, healthy and safe holiday season.
Isiah Leggett