Montgomery County Values

I love living in Montgomery County, MD.

As a member of Jews United for Justice (JUFJ), I was concerned when I learned that, due to revenue setbacks, adequate funding for public education and for essential social services for the most vulnerable in our community would only be able to be maintained if the County Executive and the County Council increased property taxes. Our County Charter requires that all nine members of the Council vote for any increase that exceeds inflation.

Last month, I was part of a JUFJ delegation which met with County Executive Ike Leggett; at that time, Ike -- who has always been something of a fiscal hawk when it comes to holding the line on taxes -- informed us that he was prepared to ask the Council for the needed tax increase.  We told him that we would fully support him before the County Council.  Several JUFJ people will be testifying at the County Council's budget hearings this coming Tuesday, Wednesday, and Thursday (April 5, 6, & 7).  My testimony is copied below.

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TESTIMONY BEFORE THE MONTGOMERY COUNTY COUNCIL

FY 17 OPERATING BUDGET

DAVID S. FISHBACK

April 5, 2016

Good evening.

As a nearly life-long resident of Montgomery County, I urge that you approve County Executive Leggett’s proposed Budget.  That Budget meets the standard set forth by the late, great Senator Hubert Humphrey: "The moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; those who are in the shadows of life, the sick, the needy, and the handicapped."

This Budget is a reflection of Montgomery County Values.  Values which I appreciated growing up here in the 1950s and ‘60s, and values which led me to return in the ‘70s with my wife to raise our family.  

This Budget values public education – the jewel in the Montgomery County crown. MCPS provided me with the education I needed to become a productive member of our society.  It did the same for my two children.  And, in the future, I want it to do the same for my young granddaughter.

This Budget values services for the most vulnerable in our community. Some of this I know first-hand.  My brother is severely developmentally disabled, and lives in a group home run by the Jewish Foundation for Group Homes.  JFGH is one of the great examples of public-private partnerships to care for those who cannot help themselves. The vast majority of JFGH funding comes from private resources, but the County assistance helps people live in dignity who otherwise would not be able to do so. And JFGH is just one of many organizations that partner with the County to help the most vulnerable.

I know that all of you share the goals of this Budget.  But one question does loom large.  Due to recent economic conditions and the County’s loss in the Wynne tax case in the Supreme Court, we cannot maintain the level of services we need without a small property tax increase. The question facing you is whether such an increase is politically feasible.

The answer, fortunately, is Yes.  Because, at most, a typical family would pay only an extra 66 cents a day.

That’s all?  Well let’s look at the numbers.  The maximum property tax increase proposed by the County Executive is 8.7% -- and it might well not be that high. See Washington Post article dated March 15, 2016

But let’s assume an 8.7% increase. 

**The current median home property tax bill in Montgomery County is $4,123. 

**8.7% of $4,123 is $358.70, or $28.23 per month, or 98 cents per day.

**But the out-of-pocket cost per family is not even that high, since real estate taxes are deductible from federal, state, and local income taxes. A typical family’s marginal income tax rate is 32.2%. So of that 98 cents, the family would get back 32 cents.  Which means that the actual out-of-pocket cost to maintain the necessary level of services would be an extra 66 cents.[1]

In our community, I have no doubt that the vast majority of voters would find this completely acceptable. These are Montgomery County values.

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[1]  *The typical marginal federal income tax rate for a family with a median-priced house in Montgomery County is 25%. 

       *The State marginal income tax rate is 4%, and the County income tax rate is 3.2%.

       *Thus, the total marginal income tax rate would be 32.2%.

Indeed, if we do the same calculation based on the average ($3,750), as opposed to the median ($4,123), current property tax bill, the cost would be even less – 62 cents.