Montgomery County Budget $99.8 Million Shortfall
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Anonymous
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A potential $99.8 million budget shortfall for 2021. It appears that property tax revenue and income tax revenue have been down.
From the article: "But the state’s income tax revenues for February — distributed back to counties through a disposition formula — don’t always change things for the better. Last year, revenues went down by 32%, forcing the county to cover a roughly $41 million shortfall." |
Anonymous
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Socialism doesn't work!
News at 5. |
Anonymous
| Easy to fix. Take it from MCPS budget. The school system is not doing anything anyway. MoCo waste money left and right |
Anonymous
The problem with Socialism is that eventually, you run out of other people's money. |
Anonymous
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If they paid down some of the debt they wouldn't have this problem. They're paying $440,000,000 in interest.
https://apps.montgomerycountymd.gov/BASISOPERATING/Common/Index.aspx 5.8 billion total budget, 7.6% of it is to service the debt. |
Anonymous
| Why the decrease in income tax revenue? Is that an indication that there has been an increase in 'cash only' income in the County? Seems that way to me. |
Anonymous
Thanks for pointing that out. That is insane. |
Anonymous
Where are the posters from the other thread raving about the County services. Do they think the County services will continue as they currently are, when there is simply not enough money in the budget for them? |
Anonymous
| Start properly taxing the country clubs! And yes. I belong and think that it is wrong. |
Anonymous
Are Country Clubs not taxed? |
Anonymous
Seriously - There are Congressional, Kenwood, Columbia, Burning Tree, Woodmont, Chevy Chase - how many others? |
Anonymous
The rich don't pay taxes... that is the real socialism going on in MC. |
Anonymous
No. County clubs do NOT PAY TAXES! |
Anonymous
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WOW
Jeez. Who could have ever predicted this (sarcasm). I'll say it again for the Nth time. MoCo is completely dysfunctional due to one party politics that has veered too far to the left. The county has rolled out the red carpet for illegal immigrants. Guess what happens? Illegal immigrants come, and they have tons of kids that need seats in schools. Schools burst at the seams and now require more spending to accommodate ESL students who need millions upon millions of dollars worth of remedial education and special English instructors. Their population alone strains school resources; now people demand we build more schools and facilities for more space. And the liberal county govt complies, only that they don't have the money. Gaithersburg now has a backlog of something like $800 million in needed school projects, and MCPS now eat up over 50% of the country's budget last time I checked. But MoCo is getting hit from all sides - there is a demographic time bomb that's just starting to explode. The number of baby boomers is going to skyrocket out to 2040, while the number of workers in their prime earning years is expected to actually decrease during that period. What that means is even less tax revenue from income for the county while the county will face increasing demands on public services for senior citizens. Also, the county is on the hook for huge pensions liabilities that baby boomers will start to come knocking on the door for to collect who worked for the county. The demographics report released by the county also showed that population growth in MoCo will almost exclusively be driven by 'international' travelers/arrivers (aka illegal immigrants). The #1 country from which people will be arriving is from El Salvador according to the report. But it gets worse. MoCo has had anemic job growth for the last few years because of brutally hostile anti-business policies, red tape, and taxes. MoCo is currently in NO position at all to grow their way out of their debt problem, because the county isn't creating jobs. Put it all together and what does it mean? I means that the county will have its credit rating start to crumble if it can't fix its debt problem. If the county's credit rating starts to drop, it means borrowing becomes more expensive, and then you enter a death spiral of ballooning deficits. The only way to combat the credit rating drop is to cut spending, which we all know liberal democrats are incapable of doing, or it means tax increases. There is no doubt in my mind that we should expect significant tax increases across the board for income and property and other fees increased. But the problem is that once you start increasing taxes people will be inspired to leave. MoCo is also now hellbent on social justice warrior initiatives in MCPS that threaten to erode school quality. Once taxes increase and schools continue to get worse, you'll see more people leave and then you start entering a death spiral where you have to keep increasing taxes even more to stop the bleeding from tax losses. It is Baltimore all over again. Property values will follow the downward trajectory as the bleeding turns into hemorrhaging. Everything is going wrong right now in MoCo. Democrats are to blame. |
Anonymous
Maybe so, and I agree that is not a good thing. However, I’d presume that this has been the case for a long time. Why the recent decrease in revenue from income taxes? Lower wages? Unreported income? Retirees? |