Editor’s note: This story was originally published at 11:51 a.m. on April 25, 2025. It was updated at 3:43 p.m. on April 25, 2025 to include a statement from Artie Harris.
While Montgomery County Executive Marc Elrich (D) touted his administration’s accomplishments during his annual State of the County address Thursday night, he also had a message for county leaders: Be more like Northern Virginia.
“We need to attract investment. … We can spend less, but we’ll build less, and we’ll serve fewer people,” Elrich said to an audience of more than 100 people at the Leggett County Executive Building in Rockville. “These other jurisdictions have figured it out. They’ve restructured their tax base so they can make long-term investments to support business and housing, and we’ve seen the results in Northern Virginia.”
The message is one the county executive has delivered often during his two terms in office. Elrich has praised Northern Virginia’s special taxing districts, which allow the collection of taxes in those districts to fund transportation projects. He has said he wants to emulate this taxing mechanism in order to invest in transportation infrastructure without relying on the county’s operating budget base. But Montgomery County leaders can’t implement similar taxes unless the Maryland General Assembly passes legislation that would enable them to do so.
“We’re in the race for business, jobs and revenue, and the victory goes to those who invest in infrastructure,” Elrich said. “If this was a race to the bottom, Montgomery County would be winning. No place has lower commercial property taxes than Montgomery County.”
The message came a day after Elrich announced his intention to withdraw a proposal to increase the county’s property tax rate in fiscal year 2026 and replace it with a proposal to increase the county’s income tax rate from 3.2% to 3.3% as part of his recommended $7.65 billion county operating budget. Elrich has said the income tax increase would be more “progressive” than increasing property taxes as state assessments go up.
Elrich’s tax proposal is intended to provide revenue to fully fund Montgomery County Public Schools’ (MCPS) $3.65 billion budget request for fiscal year 2026, which begins July 1.
Elrich focused his remarks on a few key themes, which he also named as funding priorities: housing, public safety and health, transportation, education and climate change.
“We can destroy our kids’ brains. We can destroy the planet. Those are two things we should take really seriously,” Elrich said of prioritizing funding for education and environmental programs.
While Elrich did not directly reference his new tax proposal in his speech, he defended the need to raise taxes.
“If we can preserve our tax rate, is that a victory? Is this what we want from Montgomery County? A great tax rate and mediocre services and schools that are overcrowded and underfunded?” Elrich said. “I think we want the better future, which is something more than just taxes.”
Elrich once again pointed to the policies of Virginia jurisdictions including Fairfax County, which he noted have higher property tax rates than Montgomery County.
When asked about Elrich’s new tax proposal on Wednesday, County Council President Kate Stewart (D-Dist. 4) told Bethesda Today it will be important for the council to consider the fiscal impact on residents prior to passing such a tax increase. The council did not support Elrich’s proposal to increase the property tax rate, she said.
“So many of our residents are impacted directly and indirectly by the cruel and haphazard decisions that are being made by the federal government in terms of layoffs and firings and other things,” Stewart said. “We know that our [property] assessments in the county have gone up quite dramatically. Even the thought of increasing property taxes was something that many of us had very strong doubts about.”
On Thursday night, Elrich praised the council for working with the executive branch to commit a record level of funding for affordable housing in the county — more than $168 million in the current fiscal year — to preserve existing units, produce new housing, assist renters and help first-time home buyers.
However, he also criticized the council for recently passing legislation that would offer tax breaks for some developers that create workforce housing units – which Elrich vetoed on Monday. The council is expected to vote to override Elrich’s veto during its Tuesday meeting. Under the council’s Rules of Procedure, a supermajority of at least seven of the 11 councilmembers must vote in favor of overriding a county executive’s veto.
“What I’m against in the corporate world is greed, government handouts, and an utter disregard for the environment,” Elrich said.
At the same time, Elrich said the county needs to change its moderately priced dwelling unit program so that teachers, first responders and other members of the county’s workforce qualify for housing under the program. The program requires that a percentage of housing units in residential developments be made available for low- and moderate-income households, according to the county.
Elrich also criticized the county’s Planning Board, accusing the agency of focusing on luxury high-rise housing. The criticism comes as the Planning Board has drafted proposals in recent months that focus on increasing workforce and “missing middle” housing in the county. Elrich opposed these efforts.
“That’s a problem when the planning agency takes a place like Bethesda and decides we can do with fewer minorities and that we need more luxury housing,” Elrich said.
Planning Board Chair Artie Harris said in an email to Bethesda Today on Friday afternoon in a response to Elrich’s statement that the board is committed to diversity and working collaboratively with the community as well as government officials.
“The Montgomery County Planning Board has an unwavering and proven commitment to diversity and creating conditions for everyone to thrive in our county,” Harris wrote. “Increasing the availability of housing so that everyone can call Montgomery County home is at the heart of every master plan and policy recommendation developed by Montgomery Planning and reviewed by the Planning Board.”
Harris, who has chaired the agency since 2023, is one of two Black members of the Planning Board. In his interviews for the position, he said he is committed to prioritizing diversity and inclusion in planning decisions.
Elrich also touted a number of accomplishments during his address, including expansion of the county’s curbside electronics recycling program and increased recruitment efforts for the county’s police force. Elrich said 35 prospective officers are expected to graduate from the police academy in June, an increase from 22 graduates last year.
Elrich opened and closed his address by pledging to resist the actions of President Donald Trump’s administration, which range from mass layoffs of federal workers locally and nationally to increased deportation of immigrants and the elimination of programs focused on equity, diversity and inclusion.
Montgomery County will stay true to its values, he said.
“We’re not backing down and we won’t be intimidated into silence. Not now. Not ever. We will not attempt to erase truth, suppress voices and rewrite history,” Elrich said. “This isn’t just a difference in politics. It’s authoritarianism and it’s not the first time it’s reared its ugly head in America – but it needs to be the last.”
