The Montgomery County Council is expected to vote Tuesday to override County Executive Marc Elrich’s veto of a previous council decision to update the county’s development impact tax districts. Councilmembers also are expected to introduce a bill that would require the council president to step down if that member chooses to run for office outside the council.
The council will meet at 9 a.m. Tuesday in the Stella Werner Council Office Building in Rockville for its regular weekly business meeting. Here’s what to expect:
Council expected to override Elrich’s veto on development impact tax districts
The council is expected to vote to override Elrich’s veto of a previous council decision to update the county’s development impact tax districts.
Elrich vetoed a bill passed by the council Nov. 12 in conjunction with the county’s growth and infrastructure policies (GIP) that would have changed some of the county’s development impact tax districts. The change potentially could have reduced the amount of income the county could receive from collection of the taxes.
“I cannot support a bill that reduces our ability to fund critical infrastructure projects without a viable alternative in place. As county executive, I have only made a handful of vetoes, and these decisions are not taken lightly. But I could not in good conscience sign this bill into law,” Elrich wrote in a Nov. 27 newsletter.
The assessment of development impact taxes is directly impacted by the size and geographical designations outlined in the GIP, which are designed to help govern county development for the years 2025-2028.
Developers are required to pay the taxes on approved projects to help fund school and transportation infrastructure. The designations and rates differ based on the location of a proposed development, as illustrated in maps attached to the council’s resolution.
Development impact taxes directed to school infrastructure spending are calculated for new housing developments based on estimated school construction costs as well as the expectation that the housing will generate new students. The taxes are used to help offset the costs associated with increasing school capacity.
If the council votes to override Elrich’s veto, the decision will mark the fifth time Elrich has had a veto overridden. The last time was in March 2023, after Elrich rejected the council’s confirmation of Planning Board appointee James Hedrick due to concerns over his social media posts, which had included critiques of Elrich’s policies. The council unanimously voted to override Elrich’s rejection, and Hedrick is currently serving on the Planning Board.
Proposed amendment would require council president to step down from role if running for office
Councilmembers Dawn Luedtke (D-Dist. 7) and Natali Fani-González (D-Dist. 6) will introduce a proposed amendment to the council’s Rules of Procedure that would require a councilmember holding the post of president to step down from that leadership role if they planned to run for a public office outside of the council.
Luedtke first publicly announced the proposal following the election of council President Kate Stewart (D-Dist. 4) and Vice President Will Jawando (D-At-large) at the Dec. 3 council meeting.
“[We] are putting forth an amendment to the council as a procedure … as a housekeeping measure to help keep the focus on the good of the body, the good of the whole and making sure we have a backup plan for our backup plan,” Luedtke said. “[We want] to make sure we are taking appropriate steps to keep the body functioning in the best way possible moving forward.”
According to the rule change outlined in the proposed amendment, if a council president files to run for higher office during the post’s one-year term, the position would be deemed vacant automatically. The council would elect a new president at its next regular meeting. Currently, there is no rule regarding this.
Seven of the 11 councilmembers would have to vote in favor for the proposed amendment to pass.
The county government is set to face a shake-up in 2026 after County Executive Marc Elrich was limited to two terms through the Nov. 5 passage of a ballot referendum to amend the county’s charter. Elrich is now ineligible to run for a third term in 2026, leaving his seat open for potential successors. A former councilmember, Elrich has expressed interest in running for a council seat.
Neither Stewart nor Jawando, to whom the amendment would apply within the next two years, have publicly expressed interest in running for county executive, though Jawando has voiced aspirations for higher public office and runs a federal political action committee to fund the campaigns of progressive candidates across the country.
Council to vote on increasing funding for homelessness services
The council will vote to approve a special appropriation of about $3.6 million for homelessness services in the county. Elrich submitted a request for the funding to the council last month.
The funding, which will come from undesignated county budget reserves if approved, will help fund four programs administered by the county’s Department of Health and Human Services Services to End and Prevent Homelessness division:
- $1.6 million for the Short-Term Housing and Resolution Program (SHaRP);
- $550,000 for the Shelter Services expansion (motel rooms for families);
- $1.1 million for the Housing Stabilization Services eviction prevention program; and
- $367,584 for the Rental Assistance Program.
The appropriation will fund both services and staff for these programs. According to the memorandum, the county executive’s office is evaluating whether more funding for homelessness services will be required in the upcoming fiscal year 2026 budget.
