Thursday, November 07, 2019
MoCo Council approves budget-busting developer-backed housing scheme
Only the Council itself appeared eager to brag about its vote in a press release yesterday. But braggadocio doesn't substitute for mathematics aptitude nor budgeting skill, as the Council's annual structural budget deficit proves. The Council just put you, the taxpayer, on the hook for a massive spending increase - in education, social services, police and fire, health care, and developer tax giveaways - even as they (presumably?) know there's no way in hell future councils will be able to pay for it.
What does approving the developer-backed Metropolitan Washington Council of Governments' "regional housing targets" actually mean? It obligates Montgomery County to build 23000+ new housing units for low and middle-income residents by 2030, in addition to those already planned. The County Council couldn't even be honest about that in the press release, which falsely claimed the number as 10,000 additional low-income units.
MWCOG itself predicts that 75% of the new residents coming to Montgomery County by 2030 will be low or mid-income residents. That not only means they will contribute little in tax revenue to the county, but that spending will have to skyrocket to provide the services and infrastructure such a population surge would require.
This would be difficult enough of a fiscal equation to square - massive new spending, with only 25% of the new residents able to shoulder the huge costs. But then you look at the bigger picture, and the alarm bells really start going off.
Montgomery County's moribund economy, job creation, business starts, and business growth are all rock-bottom in the regional rankings this decade. Despite record-high tax rates and tax hikes, revenue is actually declining, even as the County Council continues to spend more. Many of the ultra-wealthy have fled Montgomery County to lower-tax jurisdictions in our region, taking huge chunks of revenue that used to balance the County budget with them. Greater spending, fewer revenue-generating residents...it simply doesn't add up, no matter what brand of calculator you use.
Debt is skyrocketing. If the County's current debt was a department, it would be the third-largest department in the County budget. The last thing a sane elected official would do in that situation is agree to a massive spending increase.
Kirwan is proposing astronomical amounts of new education spending, with no appreciable change in the actual curriculum or methods. Spending on education has already been jacked up year after year by the Council, to no avail. Test scores and graduation rates continue to decline, while the achievement gap remains the same or worsens.
Taken together, the housing targets adoption and the Council's rabid desire to adopt the Kirwan recommendations on the backs of the taxpayers, have placed Montgomery County on an accelerated course to fiscal oblivion. We can't go on like this.