Montgomery County Council members voiced fears Tuesday that the fiscal 2027 budget proposed by County Executive Marc Elrich — which includes two tax increases — could create serious financial challenges for the county.

“Generally, you ask residents to sacrifice, to pay higher costs, in order to solve fiscal problems,” council member Andrew Friedson said during a council briefing.

“And here, we’re asking residents to increase their costs and make tremendous sacrifices at a time when they are struggling more than they have before, and we’re increasing our fiscal problems.”

Last month, Elrich recommended an $8 billion operating budget that calls for a nearly 6% property tax hike and a 0.1% income tax increase. The property tax increase would support a bigger Montgomery County Public Schools budget.

Without increasing taxes, the council would have to make significant cuts to the county operating budget of about $110 million or more, according to Tuesday’s staff presentation.

Elrich last week said that his budget reflects federal cuts that diminish funding for county programs.

“The very wealthiest people in this county are getting amazing tax cuts at a time when the county’s looking at that reduction in tax revenues and serious impacts on our services,” he said.

Without more revenue, he added, “we face the closure of important social programs.”

Rainy day dollars

Council members are also worried that Elrich’s budget would shrink the county’s reserve fund. He proposed a 10.6% reserve rate, compared to 11.2% in the current fiscal year. The county executive and council typically use the fund to address emergencies and other urgent needs.

The county’s charter requires at least a 10% reserve rate.

“It really scares me, leaving so little in our reserves … given what we are facing, not just on a national but a global scale right now,” said council member Kate Stewart.

“We don’t know what may happen at 8:05 p.m. tonight,” she added, referencing President Donald Trump’s threat to attack power plants, bridges and other infrastructure across Iran at 8 p.m.

Jennifer Bryant, director of the county’s Office of Management and Budget, who worked with Elrich to develop his proposal, said he and his team made difficult choices, boosting some programs and cutting others.

‘Stop digging‘

Though most members expressed frustration with Elrich’s budget, council member Will Jawando said the council needs to consider all options for raising increasing revenue, including raising taxes.

“Nobody wants to raise taxes on people who are struggling,” he said.

He said the county faces an “emergency” that could justify use of emergency funding.

“We have to take care of people. You know, if I have a loaf of bread and someone next to me is starving, I’m going to break that bread in half and give them that piece,” Jawando said. “And that’s the situation we’re in.”

Other council members said Elrich’s proposal would weaken the county’s finances.

Council member Dawn Luedtke said that it’s “insane” to use one-time reserves for ongoing expenses and continue to grow the county’s structural deficit.

“When you’re in a hole and you’re trying to fix things and level things out, the first step is to stop digging,” Luedtke said.

Council President Natali Fani-González warned her colleagues that there are going to be tough conversations about stark choices.

“I just want to remind colleagues that if you’re going to be against any tax increases, then please get ready to propose some cuts, because you cannot have it both ways,” Fani-González said.

The council will get input from the public in several hearings over the next few weeks, as well as county department and nonprofit leaders in work sessions. The council must vote on a final budget and any tax increases by the end of May.