By Adam Pagnucco.
Last May, the county council unanimously approved a $20 million special appropriation from reserves intended to subsidize job creation. The program, titled the JOBS (Jobs, Opportunities & Business Support) initiative, consists of three funds aimed at subsidizing the creation of jobs paying $100,000 or more; prototype development and pilot projects; and early/growth stage companies majority-owned by “underserved communities.” Under the resolution, the council is due to receive quarterly reports on the activities of the funds.
Nine months later, the program has subsidized 30 jobs. According to the U.S. Bureau of Labor Statistics, Montgomery County had 458,933 payroll jobs in 2023.
The program formally launched in October 2024. In a memo to the council dated February 5, 2024, County Executive Marc Elrich reported the following statistics on applications to the $10 million Job Creation Fund, the largest of the three.
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Job Creation Fund Stats as of 1/28/25
Number of Applications Submitted: 5
- IT company (10 jobs – $120,000)- expansion
- Biotech company (5 jobs – $60,000)- expansion
- IT Technical Services company (10 jobs – $100,000)- expansion
- Dental Care Company (denied – not in a target industry)
- Immunology company – (5 jobs – $60,000) – expansion
Anticipated Additional Applications
- Real Estate HQ – Q2 2025- (attraction – 40 jobs – $400,000)
- Biotech company – Q1 2025 (expansion)
- IT company – Q1 2025 (expansion)
Number of Direct Inquiries to Finance: 9 inquiries
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So that’s 5 applications for 30 jobs, with 3 more “anticipated” applications for 40+ jobs and 9 inquiries. No statistics were reported for the other 2 funds.
A few caveats. The program is still only months old. The county spent most of that time developing an online application system and criteria for evaluating applications. Marketing undoubtedly takes a while, too.
But my hunch is that the problems with MoCo’s economic competitiveness run so deep that even with subsidies, job creation is tough going here. Let’s acknowledge that the county will never have enough money to subsidize every job it needs. And drawing millions of dollars out of reserves for business subsidies is an unsustainable strategy that must not become a regular practice.
Here is a suggestion that will have a much bigger impact on job creation than any incentives. County leaders must evaluate every bill, every regulation, every proposal, every change in taxes and fees and the purpose of every form of government spending against this criterion: does it create jobs or destroy them? If the answer is create, then they should pursue it within the bounds of fiscal responsibility. If the answer is destroy, then they must oppose it. Sure, there is more to economic development than that. But incorporating a central focus on job creation and private sector income growth into all aspects of government would be a good start on a new path for Montgomery County.
The county executive’s quarterly report on the job creation fund can be downloaded below.
J.O.B.S Initiative Quarterly Progress Report January 2025.full