More News

Montgomery County officials are considering laying off as many as 250 employees to help fill a $762 million budget shortfall in fiscal 2011, Chief Administrative Officer Timothy Firestine said Tuesday.

The size of the shortfall has grown by $154 million from earlier this year, when the figure was put at $608 million. Part of the increase was due to the high price tag for snow removal and cleanup following the recent back-to-back blizzards — more than $25 million.

County Executive Isiah Leggett (D) said Tuesday that he is weighing several options to trim the budget, but has made no final decisions on his proposed budget, which is due March 15.

"Essentially, everything is on the table," Leggett said of possible cuts.

One of those options is to lay off 250 county government employees and abolish another 150 unfilled positions, Firestine said during a budget briefing with the Montgomery County Council on Tuesday.

County Council President Nancy M. Floreen (D-At large) of Garrett Park, who requested the meeting with Leggett, called the news "sobering."

The county lost about $31.8 million in state aid not for education, and revenue in February was $54.9 million less than expected, Firestine said Tuesday.

Snow removal costs for the two snowstorms topped $25 million, he said, adding that the total cost of snow removal and cleanup this season has been $42 million.

Leggett said there is hope the county could receive federal aid to help pay for snow cleanup. The federal government has said it would treat the two storms as one, which would help Maryland jurisdictions qualify for the aid.

A loss of net taxable income in Montgomery County contributed to much of the revenue losses, Firestine said. Between 2007 and 2008, the county lost about $4.6 billion in net taxable income — the equivalent of $150 million in income tax revenue, he said.

Firestine highlighted the loss of Montgomery County's wealthiest residents — those making $1 million or more. He said 39 percent of those residents left the county or earned less money between 2007 and 2008, resulting in the loss of $3.7 billion in taxable income.

Leggett said he was not considering raising taxes to generate additional revenue.

The Montgomery County Council already has made $100 million in cuts to the fiscal 2010 budget.

The total fiscal 2010 budget is $4.4 billion. Leggett has cut about $1.2 billion from the county's past three budgets.

The county executive said Tuesday that further cuts will be more painful and result in changes to county services and programs.

All county departments except for public safety, health and human services and transit have been asked to cut 20 percent from their budgets in fiscal 2011, Leggett said. Those departments have been asked to trim 7 percent from their budgets.

County officials have proposed a retirement incentive program for government employees as an alternative to layoffs, Firestine said. The details are still being worked out with the county government employees union, he said.

The plan differs from a controversial early buyout program considered for fiscal 2010.

Under the fiscal 2010 program, county employees within two years of retirement could retire early and receive a one-time $40,000 payment. Leggett said the program would save the county money, but a report from the Office of Legislative Oversight showed that offering the incentives would save money in the short term, but cost the county money over time.

Firestine said the more recent retirement incentive program would be more specific. The county would abolish a certain number of positions in a department, he said, and then offer retirement incentives for the same number of employees from the department.

The plan would help to avoid layoffs, he said.

The United Food and Commercial Workers Local 1994/Municipal and County Government Employees Organization sued the Montgomery County Council for failing to act on the fiscal 2010 retirement incentive plan, but Firestine said that legal battle, which is ongoing, would have no effect on the most recent proposal.

An attempt to reach MCGEO President Gino Renne on Tuesday was unsuccessful.

Floreen said it was important for the council to work with Leggett on the budget.

In January, Councilman Michael J. Knapp (D-Dist. 2) of Germantown proposed holding a budget summit with department heads, the Board of Education, the County Council, the executive and others.

Floreen said Monday there were no plans to move forward with such a summit, but she said she was committed to keeping the lines of communication open with all parties.