Montgomery County Council Reaches Preliminary Agreement on $7.6 Billion Fiscal Year 2026 Operating Budget

The Council voted to approve funding to support Montgomery County Public Schools (MCPS), Montgomery College, and essential educational and cultural services in Montgomery County. Funding $3.6 billion for MCPS comprises half of the County’s overall budget and is 99.8 percent of the Board of Education’s request. The local County contribution of $2.4 billion funds the school system at approximately $210 million above the state’s Maintenance of Effort funding level, which is the required level of per pupil funding that must be maintained by counties in Maryland year-over-year.  

Some highlights include: 

• MCPS funding in the amount of $3.6 billion, which is an increase of more than $332 million, or ten percent, over the approved FY25 Operating Budget. MCPS will receive $50 million from the pre-funding of the retiree health benefit trust. The use of one-time funds will assist MCPS in meeting its payments for retiree benefits, address cash flow issues, and make other funds available to MCPS to address needs as it takes action on its three-year plan to address escalating health care costs. The State of Maryland's Blueprint for Maryland's Future legislation requires increases to account for 113 additional full-time employees (FTE) for FY26 above the approved FY25 budget level, for a total of about 1,023 additional FTEs.    

• Montgomery College funding in the amount of $345 million, which fully funds the College’s Maintenance of Effort request and maintains tuition at current levels.   

• Montgomery County Public Libraries funding in the amount of nearly $55 million, including increased funding to meet rising demand for digital materials and significant enhancements to the World Languages collection across nine different languages (Spanish, Chinese, Vietnamese, Korean, Amharic, French, Bengali, Farsi, and Russian). 

• Approximately $7 million for the Arts and Humanities Council of Montgomery County (AHCMC) Non-Departmental Account (NDA). AHCMC distributes project grants, support services, and matching funds to individuals and organizations leading cultural enrichment programs in the County and not receiving general operating support. 

The Council voted to approve funding to enhance public safety across Montgomery County. Some highlights include:   

• Montgomery County Police Department (MCPD) funding in the amount of $352 million, which represents an increase of $12 million from the previous budget year. The budget includes $274,000 to expand the Drone as First Responder program to Germantown. Other increases are attributed to a Speed on Green automated traffic enforcement pilot project, enhancements to the Real Time Information Center, and providing security officers at Progress Place. 

• Montgomery County Fire and Rescue Service (MCFRS) funding in the amount of $310 million, which is an increase of six percent compared to the previous budget. The budget includes three enhancements for medical services programs, including the addition of a new Basic Life Support transport unit and associated staffing to better serve County residents. 

• State’s Attorney’s Office funding in the amount of $27 million, which is used to prosecute criminal violations in Montgomery County, educate the public about criminal justice issues and provide training to lawyers for future service. 

• Office of Emergency Management and Homeland Security (OEMHS) funding in the amount of $5.7 million, which accounts for 23 FTEs. The budget includes $1.2 million to maintain the funding level for the Nonprofit Security Grant Program, which aims to protect nonprofit organizations and houses of worship. The role of the OEMHS is to plan, coordinate, prevent, prepare for and protect against major threats to the Montgomery County community and manage the County’s unified response and recovery.  

• Sheriff’s Office funding in the amount of $33 million, which provides general law enforcement, judicial enforcement and specialized public safety services to the residents of Montgomery County. The Sheriff’s Office serves warrants and court orders and is responsible for transporting inmates. 

• Office of Animal Services funding in the amount of $11 million, which funds the operation of the Montgomery County Animal Services and Adoption Center (MCASAC) and the Field Services program responsible for enforcing state and County laws, investigating resident complaints, and responding to animal emergencies, as well as providing education and resources on animal care and safety to pet owners 

• Office of Consumer Protection funding in the amount of $3.2 million, including two new positions to support the implementation of Bill 6-25, Consumer Protection for Renters, which expands the office’s authority to investigate and enforce consumer protection laws in landlord-tenant matters that may include unfair or deceptive trade practices. 

• The budget includes a 9-1-1 fee increase from 75 cents to $1.47 for each telephone subscriber. This is the first fee increase since 2003. The increase is expected to generate an additional $12.5 million to close the projected gap between expenditures and current collection levels. The increase amount will be reviewed by the Council annually moving forward. 

The Council voted to approve economic development initiatives focused on job creation and business attraction and development in Montgomery County. Some highlights include: 

• Funding in the amount of $5.3 million for the Montgomery County Economic Development Corporation (MCEDC), which is the County’s lead economic development organization. MCEDC implements the County’s economic development strategic plan, which includes marketing, business attraction and retention, entrepreneurship, and promoting the County’s economic base.  

• More than $4.6 million for Montgomery County’s business incubators to help grow businesses through mentoring, technical assistance and educational programs. 

• Conference and Visitors Bureau funding in the amount of $2.3 million. The Conference and Visitors Bureau, also known as Visit Montgomery, promotes the County as a destination for meetings, conferences, student group travel, group tours, leisure travel, and sports events.  

• Small Business Support Services funding in the amount of $2.4 million, which provides a vehicle for funding ongoing contracts with third parties to provide specialized assistance and programs for small businesses and entrepreneurs.  

• More than $579,000 for BioHub Maryland in Montgomery County to support the funding to operate a 7,500-square-foot biomanufacturing training center.  

• UM3 – Institute for Health Computing funding in the amount of $5 million, which maintains the matching funds the County committed to provide from FY24 through FY29. UM3 is a strategic initiative that aims to improve health and well-being using artificial intelligence, machine learning and clinical analytics to facilitate knowledge discovery. This is a partnership with the County and the University of Maryland.  

• Funding for the Sports Tourism Task Force in the amount of $100,000 to conduct a feasibility study, in partnership with the Maryland Stadium Authority, to comprehensively analyze opportunities for Montgomery County to capture sports tourism dollars.  

• Funding for WorkSource Montgomery in the amount of $3.2 million. WorkSource Montgomery is the County’s designated workforce development corporation and fiscal agent responsible for local administration of the Workforce Innovation and Opportunity Act and coordination of the public workforce development system.  

• More than $4.2 million for the Economic Development Fund, which provides assistance for private employers who are located, plan to locate, or substantially expand operations in the County. 

• Funding for the Office of Agriculture in the amount of $1.5 million to promote agriculture as a component of the County's economic sector, as well as to preserve farmland as a resource for future agricultural production by partnering with local businesses, the University of Maryland, and state and federal agencies. 

• More than $77 million for the Alcohol Beverage Services’ (ABS) operating budget which maintains same service levels. ABS provides licensing, wholesale and retail sales of beverage alcohol products, enforcement and education and training programs. 

Health and Human Services  

The Council voted to approve numerous health and human services programs that residents rely on for health care, social safety net services, and older adult and youth services. The Council voted to fund the Montgomery County Department of Health and Human Services (DHHS) at more than $554 million, which represents an increase of more than $43 million, or eight percent from the approved FY25 Operating Budget. 

Some of the divisions and initiatives that are part of the DHHS budget include: 

• Aging and Disability Services with $78 million that provides seniors, persons with disabilities and their families with home and community-based support services and protections. 

• Behavioral Health and Crisis Services with $66 million allocated across nine program areas that promote mental wellness and ensure access to a comprehensive treatment recovery system of effective services and supports for children, youth and families, and adults and seniors with behavioral health needs.  

• Children, Youth and Family Services with $140 million allocated across six program areas that provide protection, prevention, intervention, treatment and financial assistance services for children and their families. 

• Public Health Services with nearly $117 million to protect and promote the health and safety of residents by implementing intervention strategies to contain or prevent disease and fostering public-private partnerships to increase access to health services. 

• Services to End and Prevent Homelessness with $62 million to provide access to safe, affordable housing and opportunities to improve quality of life through a continuum of services that includes housing stabilization, homeless diversion, and permanent housing options.  

• About $1.9 million in funding to support a variety of mental health services and supports in the County, including the new Stabilization Unit for the Diversion Center project to accommodate walk-in services and youth-focused services, funding to secure a provider and meet demand for the County’s Domestic Violence Shelter, funding to expand full-time Linkages to Learning at Greencastle and Burnt Mills Elementary Schools, as well as a differential increase for bilingual Linkages to Learning therapists. 

• Among some of the initiatives that include DHHS involvement with MCPS and early care and education is $14 million for Early Childhood Services, $15 million for the Early Care and Education NDA, $775,000 for the Children’s Opportunity Alliance, $2 million for child care subsidies, $51 million for school health services, $14 million for Linkages to Learning, $7 million for child and adolescent and community based services for family strengthening, and $16 million for positive youth development services like violence and gang prevention and intervention, Youth Opportunity Centers, High School Wellness Centers, the Street Outreach Network, and the Safe Space Program. 

The Council voted to approve funding for housing programs to create and preserve affordable housing in Montgomery County. Some highlights include: 

• Department of Housing and Community Affairs (DHCA) funding in the amount of $81.4 million, including $13.7 million from the General Fund and $8.7 million from the Grant Fund (which programs federal and state grants related to community development). DHCA works to preserve and increase the supply of affordable housing, maintain existing housing in a safe and sanitary condition, preserve the safety and quality of residential and commercial areas, ensure fair and equitable relations between landlords and tenants, and support the success of common ownership communities. 

• Housing Initiative Fund (HIF) resources in the amount of $58 million to finance the production, acquisition and preservation of affordable housing and rental assistance programs for households with low incomes and for households moving from homelessness to permanent housing.  

• Housing Opportunities Commission (HOC) funding totaling nearly $9 million. HOC’s mission is to provide affordable and supportive services that enhance the lives of individuals and families who have low to moderate incomes.  

Transportation and Environment  

The Council voted to approve funding to support County transportation and environmental initiatives. Among them, the Council eliminated fares for all riders on Ride On buses to promote transit equity, encourage ridership growth, and make the County bus system easy to use for current riders. Some additional highlights include: 

• Montgomery County Department of Transportation (MCDOT) – outside of Transit Services and the Parking Lot Districts – funding in the amount of $67.4 million. These funds are divided among the Transportation General Fund, the Leaf Vacuuming Fund, and the Grant Fund. The General Fund is used to plan, design, build, and maintain transportation facilities such as roads, bridges, sidewalks, paths, and bikeways, operate and maintain the County’s traffic signal system, develop and implement transportation policies to maximize efficient service delivery, and promote safety via educational programs.  

• Division of Transit Services funding in the amount of $211 million, which provides public transportation services in the County and its budget is composed of the Mass Transit Fund and the Grant Fund. The Division of Transit Services funding also includes more than $1 million in state aid and an intergovernmental transfer from Howard County to expand US 29 Flash Bus Rapid Transit (BRT) service to Howard County. 

• Parking Lot Districts funding in the amount of $30.4 million, which provides for the operation and maintenance of public parking in commercial areas throughout the County, including the Bethesda, Silver Spring, and Wheaton Parking Lot Districts (PLDs).  

• More than $227,000 for the Vision Zero NDA to fund the oversight and coordination of the Vision Zero Initiative to end traffic-related serious injuries and fatalities. This is a decrease of nearly 40 percent from last year’s budget, given that the County has not received a signed agreement for Safe Streets and Roads grants awarded by the U.S. Department of Transportation. 

• Funding in the amount of $9.8 million for the Department of Environmental Protection’s (DEP’s) General Fund budget to support ongoing services including climate programs and code enforcement. 

• Funding in the amount of $39.4 million for the DEP Water Quality Protection Fund budget to support the County’s ongoing work to meet its NPDES-MS4 permit requirements. An additional $250,000 was provided for outreach regarding the Council’s recently amended carryout bag fee law. DEP’s popular Clean Water Montgomery Grants program also received $150,000 in additional funding. 

• Fully funds DEP’s Solid Waste Collection Fund budget ($12.97 million) to cover increased contractual costs for trash collection services.   

• Supported the County Executive’s request for $28.5 million in FY26 in the Solid Waste Disposal Fund for short-term capital work at the County’s Resource Recovery Facility and Transfer Station to ensure the continued safe and reliable operation of the County’s current waste disposal processes. 

• Montgomery County Green Bank (MCGB) funding in the amount of nearly $17 million. The MCGB provides financial backing and technical expertise to advance clean energy initiatives throughout the County. This work is critical to helping the County meet its climate goals to reduce emissions by 80 percent by 2027 and 100 percent by 2035. 

• Washington Suburban Sanitary Commission (WSSC Water) funding in the amount of $1.13 billion which provides public water and sewer services to approximately 2 million residents in Montgomery and Prince George's Counties. WSSC Water maintains three reservoirs and two water treatment plants that provide about 162 million gallons per day of drinking water and maintains seven wastewater treatment plants. 

Recreation, Parks and Planning 

The Council voted to approve numerous recreation, parks, and planning programs. Some highlights include: 

• Department of Recreation tax-supported funding in the amount of nearly $63 million, which is an increase of 5.6 percent from the approved FY25 Operating Budget. It includes increased funding for the new Silver Spring Recreation and Aquatic Center, as well as additional funding to support the Excel Beyond the Bell afterschool programming to Waters Landing and East Silver Spring Elementary School. 

• Maryland-National Capital Park and Planning Commission (M-NCPPC) tax-supported funding of more than $193 million. M-NCPPC is a bi-county agency that makes recommendations on planning and growth, protects natural, cultural and historic resources and provides leisure and recreational experiences. The Montgomery Planning Department prepares master and sector plans for Planning Board review and Council review and approval. The Montgomery Parks Department oversees the acquisition, development and management of the County’s parks system, which is currently comprised of more than 37,000 acres across 419 parks. The Council also voted to restore about $1.4 million in funding for the FY26 compensation increases and $2 million in funding for the base budget for parks.   

Government Operations and Collective Bargaining Agreements 

The Council voted to approve funding for service delivery through government operations and to invest in the County’s workforce. Some highlights include:  

• Approval of the memoranda of agreement with the Fraternal Order of Police (FOP) Lodge 35, the Montgomery County Career Fire Fighters Association of the International Association of Firefighters (IAFF), Local 1664, the Montgomery County Volunteer Fire Rescue Association, and the Municipal and County Government Employees Organization (MCGEO), Local 1994. 

• Recognizing the essential work performed by Montgomery County employees to meet the multiplicity of needs in our community, the operating budget includes $4.8 billion in tax-supported compensation and benefit costs, which is a 9.5 percent increase from FY25.  

• Funding for the Office of the Inspector General (OIG) in the amount of $3.9 million. The mission of the office is to prevent and detect fraud, waste and abuse in government activities and propose ways to increase the legal, fiscal and ethical accountability of County government and County-funded agencies. 

• Board of Elections funding in the amount of $14 million, which is a decrease of 17 percent compared to previous year’s budget to account for multiple one-time expenses incurred by the County as part of the 2024 election cycle. 

• Technology and Enterprise Business Solutions (TEBS) funding of more than $72 million. TEBS provides technology solutions and facilitates the delivery of a wide range of services to all branches of government focusing on the effective use of Artificial Intelligence (AI) and supporting operations based on cloud technology that permits all employees to perform their work on any device securely.       

• Office of Racial Equity and Social Justice (ORESJ) funding of $1.6 million. ORESJ works with all County departments to work toward achieving racial equity and social justice in Montgomery County. 

• Office of Food Systems Resilience (OFSR) funding of nearly $14 million to advance a strategic, long-term approach to strengthening the efficiency, equity, sustainability, and resilience of the local food system. This investment supports key initiatives, including expanded programming and grant funding aligned with the Strategic Plan to End Childhood Hunger. It also reinforces the capacity of community-based organizations and non-profits through operational support and assistance, ensuring they can continue to provide critical food resources to residents in need. 

AMENDED FY25-30 CAPITAL IMPROVEMENTS PROGRAM