Elrich recommends nearly $6 billion Capital Improvement Program for next five years

MCPS would receive largest appropriation of funds at $1.9 billion

January 17, 2024 3:39 p.m.

Montgomery County Executive Marc Elrich (D) unveiled a proposed capital budget and Capital Improvement Program (CIP) of $5.84 billion for fiscal years 2025-2030 on Tuesday. It includes $1.9 billion in funding for Montgomery County Public Schools (MCPS) capital projects.

The CIP is a six-year plan for capital improvements in the county that works in tandem with the proposed budget. It lays out the objectives of capital programs, the relationship between these and the county’s long-range development plans, recommendations for construction, and estimates of costs, revenue sources and impacts. This is Elrich’s third time presenting a CIP.

The proposal is about 2.3% higher than the previous CIP. However, Elrich said the increase will not cover all the requests coming from county stakeholders.

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“Given our fiscal limitations, I was not able to fund all the worthy projects proposed by Montgomery County Public Schools (MCPS), Montgomery College, Maryland-National Capital Park and Planning Commission, and Montgomery County departments on the requested schedule,” Elrich wrote in his memorandum. “This was particularly true for MCPS that requested more than a $515.9 million increase in funding in the first four years of the CIP when there is less flexibility in the planned program.”

Rachel Silberman, county budget specialist, said during a press briefing Tuesday that rising construction costs posed a challenge in developing the CIP.

“Inflation, supply chain deficiencies and labor shortages are all driving up our costs. So as a result, we have less buying power,” Silberman said.

Between MCPS and Montgomery College, education makes up nearly 40% of the proposed CIP budget. If passed, MCPS would receive the largest appropriation of funds across the entire proposed CIP. Highlights of the proposed education budget include renovations and additions for several MCPS schools and construction funding for a new East County campus for Montgomery College.

MCPS is the largest CIP funding category, followed by transportation at $1.7 billion. Proposed transportation funding includes building a bus rapid-transit system, supplements to federal aid for three bridge replacement and renovation projects and improvements to pedestrian and cyclist walkways.

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Rich Madaleno, the county’s chief administrative officer, said Tuesday that the Maryland General Assembly needs to pass legislation that would enact taxes similar to those in Virginia to create funding for transportation infrastructure projects as recordation tax revenues have decreased.

“Under our current structure, we do not have the resources to build the infrastructure which are so critical to job growth and continued competitiveness regionally and nationally, which is why new state legislation that would allow us to tap into some of the revenue streams that Virginia has been able to over the last decade is so critically important,” Madaleno said.

According to Tuesday’s budget presentation, northern Virginia raised $424.7 million in fiscal year 2022 dedicated to transportation projects after the state increased Sales and Use Tax by 0.7% and imposed a 2% hotel tax.

“We’re absolutely totally paralyzed by this,” Elrich said Tuesday.

Elrich said the current level of tax income the county government receives makes it particularly difficult to balance schools projects with other priorities.

“[Special taxes] would enable us to take [transportation projects] out of our current capital budget, freeing up capital, so we don’t have these draconian decisions of what schools are we going to build, what rec center we won’t be able to open, what library opening is going to be delayed,” Elrich said.

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Other major investments in the CIP include the construction of a new Clarksburg Library, construction of a new recreation center in the western part of the county and the buildout of the Wheaton Arts and Cultural Center and construction of the White Flint Fire Station.

It would also funding for the design and studies for a new electric bus depot and support for transit-oriented redevelopment in North Bethesda and mixed-use redevelopment in White Oak.

Council President Andrew Friedson (D-Dist. 1) released a statement Tuesday thanking Elrich and his staff for preparing the CIP.

“As Council president, my overarching goal is to strategically balance capital investments for schools, fire and police stations, roads, libraries, recreation centers and facility improvements in a fiscally responsible, transparent and sustainable way, while remaining focused on the financial pressures facing our taxpayers,” Friedson wrote.

The council will have to review Elrich’s CIP for approval and can start work sessions on it in February. Elrich will present his fiscal year 2025 operating budget by March 15. The council will take a final vote on the budget and CIP in May.

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