By Adam Pagnucco.
Near the end of Friday afternoon, County Executive Marc Elrich released his last recommended operating budget. (Elrich is term limited and is running for a council at-large seat). Elrich’s FY27 budget grows all-agency tax-supported county spending by 5.7%, which is more than double the 2.4% rate of growth in the Washington-Arlington-Alexandria CPI-U in the year ended November 2025.
Elrich’s budget includes a host of tax and fee increases. The headliners are:
1. A 6.3 cent property tax increase, which would result in BY FAR the highest property tax rate since Montgomery County adopted its current system in FY01.
2. An increase in the income tax rate from 3.2% to 3.3%. Until last year, 3.2% was the maximum rate Maryland counties could charge, but the General Assembly passed legislation allowing an increase to 3.3%.
3. A new “special taxing district” within a half-mile of planned bus rapid transit routes. The tax rate(s) for this district are not specified as collection is due to begin in FY28. The council must approve the creation of any such district.
As of this writing, three council members sent out public statements on the budget and the taxes it contains: Andrew Friedson, Natali Fani-González and Evan Glass. Friedson and Glass are running for county executive. I will have comment on the tax increases later, but let’s first review what these council members have to say.
Let’s start with Friedson, who vows “I will NOT support any new or increased taxes in this budget.”
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ROCKVILLE, Md., March 13, 2026—Councilmember Andrew Friedson made the following statement today after County Executive Marc Elrich released his Fiscal Year 2027 Recommended Operating Budget:
“Throughout my two terms on the County Council, including my time as Council President, I’ve prioritized making Montgomery County more affordable for families and more competitive for businesses. With the Trump Administration inflicting daily chaos on our community, and our families squeezed with increased costs, relentlessly focusing on affordability is more important than ever.
“As rising costs cause significant financial instability for families struggling to make ends meet, I am especially disappointed that the County Executive has proposed a series of tax increases in his recommended budget including a 6.3 cent property tax hike and an increase in the local income tax.
“Families are struggling to keep up with surging costs of groceries, gas, and energy bills so I will NOT support any new or increased taxes in this budget.
“Despite anemic job growth, the County Executive’s recommended $8.019 billion budget is $2.4 billion higher than just eight years ago, a 44 percent increase, as wages for working families have stagnated.
“I’ve consistently voted against tax increases – when the County Executive proposed increasing property tax rates in the early days of the pandemic in 2020, and again in 2023 and 2025, as well as last year’s proposed retroactive income tax hike. I continue to believe our future is brighter when we keep affordability for our families at the forefront of our decisions: by reducing the cost of living here, expanding economic growth and private sector investment to fund our priorities, and being more effective and efficient with the tax dollars we receive.
“I hope you’ll engage in the process. The Council’s public hearings on the Operating Budget are scheduled for April 7, 8 and 9. Those wishing to testify at the public hearings in person or virtually can sign up on the Council’s webpage or by calling 240-777-7803.”
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Now to Council President Natali Fani-González.
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ROCKVILLE, Md., March 13, 2026—Montgomery County Council President Natali Fani-González made the following statement today after County Executive Marc Elrich released his Fiscal Year 2027 Recommended Operating Budget:
“The budget decisions the Montgomery County Council makes this year will be some of the most challenging since the Great Recession. We must balance growing community needs with limited resources and new financial obligations hoisted upon us from the federal government.
“The Council thanks the County Executive and his team for their work on the recommended operating budget. Now it’s time for the Council to dig into the data, peel back the layers of budget assumptions, and make sure every dollar in this more than $8 billion operating budget proposal is going toward its highest and best use.
“There are several key revenue assumptions in the County Executive’s Fiscal Year 2027 Operating Budget proposal that I will be closely evaluating with colleagues, including the proposed 6.3 cent property tax increase, a 3.3 percent local income tax rate, increased solid waste charges to fund long haul trucking of our trash to another undisclosed community, and the creation of special taxing districts.
“We know that the needs in our community are great, from achieving excellence in our schools, enhancing public safety, and providing social services to the most vulnerable, to providing world-class parks and transportation infrastructure. We also know that working families are hurting right now, with rising food, housing, utility, and energy costs outpacing gains in wages. It is under this context that I will be reviewing the County Executive’s request to increase income and property taxes. The bar for raising taxes is appropriately high.
“Moreover, I am disappointed that the County Executive has unilaterally continued his pursuit of dumping our trash into another community when there are still so many risks and unanswered questions, including the cost to taxpayers, the effect on revenue, as well as the impacts on the environment and the workforce. Last year the Council made it clear that it could not consider a once-in-a-generation decision to fundamentally change how we handle solid waste absent a complete, rigorous, and balanced analysis of all options and a deep and equitable community engagement process. Sadly, we are lacking on both counts.
“Additionally, the Executive’s budget assumes the creation of special taxing districts. These districts create an additional tax for residents and businesses in these districts, so the Council must consider this new tax along with all the other tax increases already proposed by the Executive.
“Finding the right balance to fund education, public safety, safety net services, and maintain the County’s outstanding quality of life will not be easy. It will require participation from our residents, community partners, service providers, and outside agencies to help inform councilmembers, as we determine Montgomery County’s path forward.
“I encourage residents to provide their feedback to the Council, as we move through the budget process. Your views are essential to developing a final budget that balances community needs, county services, and the financial challenges facing our taxpayers.”
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Let’s finish with Council Member Evan Glass, who – like Friedson – is running for executive.
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ROCKVILLE, Md., March 13, 2026—Montgomery County Councilmember Evan Glass made the following statement today after County Executive Marc Elrich released his Fiscal Year 2027 Recommended Operating Budget:
“Montgomery County residents are facing a real affordability crisis. Housing costs are rising, utility bills are skyrocketing, and thousands of our neighbors are unemployed or worried about their job security because of the Trump Administration.
“The budget proposed by the County Executive does little to ease the burden families are feeling, and I remain deeply skeptical of the proposed tax increases. A 6.1 percent property tax increase and a 3.3 percent income tax rate would place an even heavier burden on residents who are already stretched thin.
“My focus throughout this budget process will be to prioritize our social safety net — including public health and safety, housing, and education. That means making the most of the resources we have by supporting our workforce, reducing duplication, and streamlining government so it works better for residents.
“There will be many tough conversations and difficult decisions ahead. I’m also watching our colleagues in Annapolis as they work to close a $1.5 billion state budget gap, mindful of the impact those decisions could have here in Montgomery County.
“My commitment throughout this process is to ensure every voice is heard, every concern is considered, and that we emerge with a budget that leaves Montgomery County stronger than before.”