At a work session between the Montgomery County Council and school system officials on Tuesday, some councilmembers warned that it will be difficult to fully fund Montgomery County Public Schools’ (MCPS) $3.65 billion operating budget request for fiscal year 2026 as uncertainty about the county’s economic outlook grows and the proposed spending plan becomes increasingly strained.
“There’s no doubt that you need additional funds, but we are being asked to take a leap of faith … without knowing the outcome,” councilmember Marilyn Balcombe (D-Dist. 2) said during the work session.
The council’s Education and Culture Committee voted last week to recommend that the council fully fund MCPS’ budget request, although members expressed concern that doing so could require a tax increase as proposed by County Executive Marc Elrich (D). A tax increase needs a council majority vote to pass.
In order to fully fund the MCPS request, Elrich proposed an increase to the county’s income tax rate – from 3.2% to 3.3% on April 23.
The proposed income tax increase is part of Elrich’s recommended $7.65 billion county operating budget plan for fiscal year 2026, which begins July 1. The spending plan represents a substantial increase of 7.4% from the county’s current $7.1 billion operating budget.
Most councilmembers are wary of approving Elrich’s budget proposal, expressing concerns at a work session Monday that it would not be responsible to raise taxes on residents when thousands have been laid off from federal jobs and some economic experts predict a recession is on the horizon due to changes by President Donald Trump’s administration.
With a new funding proposal introduced just weeks before councilmembers are required to adopt a final budget plan, the council is on a tight timeline to decide whether to adopt Elrich’s recommendation. The council is required to make a formal decision on Elrich’s proposal by May 15 if a tax increase is to be implemented in fiscal year 2026. A council hearing is scheduled for May 13.
This quick turnaround has become a salient point among councilmembers who oppose to the proposal, saying it’s not appropriate to rush such a major decision. County budget analysts have also warned councilmembers that the amount of potential revenue raised from an income tax hike could be unpredictable.
If the council does not approve Elrich’s proposal, they will have to figure out if cuts to proposed funding for other departments can be made to fully fund the MCPS proposal, or if the school system’s request must be reduced.
MCPS Superintendent Thomas Taylor’s recommendation — $300 million increase over current spending — would help pay for spending that includes an expected 3.25% base salary increase for staff and the proposed addition of 688 special education positions and 52 additional security staff members, among other expenses, according to MCPS officials.
During Tuesday’s work session, Taylor emphasized what a large operation MCPS is, which is why it requires more resources.
“We’re the largest restaurant chain in Montgomery County,” Taylor joked. “We have more students accessing our federal free lunch program than the District of Columbia has students.”
All councilmembers expressed appreciation to school system officials Tuesday for making efforts to increase transparency in how MCPS was using its funding. The council has raised concerns about school board leadership and transparency surrounding the budget in past years. During the fiscal year 2025 operating budget cycle, then-council President Andrew Friedson (D-Dist. 1) said the school board showed a “lack of leadership” in budget decisions. This was prior to Taylor coming to MCPS.
But some councilmembers said while they want to fund the school system beyond the baseline requirements, the council needs to be realistic about whether the community can support the tax increase that the proposed budget is dependent on.
“The next big domino that will fall from this body will be our decision as to whether or not we support the income tax increase,” said councilmember Gabe Albornoz (D-At-large). “If we don’t support it … we have a significant math problem, because we will not be able to fully support all of the very legitimate recommendations set forth by MCPS.”
Council President Kate Stewart (D-Dist. 4) said MCPS has been doing the right things in its work on the budget, but the county is facing “unprecedented times” and an uncertain fiscal outlook that makes this work harder.
“It’s so unsettling right now. I wish we weren’t at this place where we are in the world … you all working hard to get on the right track and yet there’s so many unknowns,” Stewart said. “We need to be really careful. … When you’re in a hole, you stop digging.”
But other councilmembers asserted the council needed to find a way to fund MCPS’ full request, even though the request is higher than the federally mandated “maintenance of effort” – meaning more than the county is required to spend for each pupil.
“As we are tasked with being good stewards of our local economy, our job isn’t just to make cuts, it’s also to ensure that our children are the last to feel them,” councilmember Laurie-Anne Sayles (D-At-large) said.
Council Vice President Will Jawando (D-At-large), who chairs the council’s Education and Culture Committee, expressed a similar sentiment.
“Public education is one of the few things that we are required to fund … and we have to take care of our community. That’s why I love Montgomery County,” Jawando said. “We’re not just going to do the things we’re required to do … this is a huge community need, which we all agree about, and there is a lot at stake in this budget.”
The council must take final action on the budget by June 1. A vote has not yet been scheduled.
Bethesda Today reporter Ashlyn Campbell contributed to this report.
