Friday, January 15, 2010

County Executive Unveils Six-year Capital Construction Budget

Montgomery County Executive Isiah Leggett today unveiled his six-year capital construction budget that significantly enhances school construction in Montgomery County. Leggett’s recommendation funds more than 99 percent of the Board of Education’s request, which in FY11 draws on about 58 percent of all general obligation bonds issued for that year. This represents a 16.8 percent increase for schools to nearly $1.5 billion. Education is Leggett’s highest priority, and he has reprioritized available resources to maximize support of public education. This Capital Improvements Project (CIP) will add 118 classrooms for nine schools, build a new elementary and new middle school, and reopen two holding schools. The announcement was made at Paint Branch High School, where, in 2012, a new building will replace the current 1940s school.

Despite the difficult economic times, exceptionally low construction prices have allowed the County Executive to take a long-term view on critically needed school infrastructure. By funding investments now, the County will save millions of dollars in future construction costs as the economy recovers.

Leggett is proposing a $3.9 billion fiscal year (FY) 2011-2016 CIP budget that keeps an overall spending increase of 4.5 percent while accelerating replacement of the County’s critical Traffic Management System and moving important public safety, affordable housing, infrastructure preservation, transportation, economic development and environmental protection projects forward. The proposed CIP mirrors the shared priorities of the Executive and the community.

“Our region is facing continuing tough economic times that demand a prudent approach to budgeting,” said Leggett. “We have had to make hard choices and make every dollar count to meet the challenges of today while investing in the future. Despite these constraints, this CIP supports my priorities for excellence in local education at the K-12 levels. I am increasing funding for school construction and modernization by nearly 17 percent, while staying within the County Council’s Spending Affordability Guidelines.

“We had to make some tough choices in this CIP, and there are many needs that remain unmet. However, our operating budget, which depends not on the County’s borrowing program, but on tax revenues, remains a huge challenge during this economic downturn. Already, I have sent savings plans for this fiscal year totaling $100 million to the County Council and in March, the operating budget for the upcoming year will propose further cuts to close a $608 million gap.”

For the complete press release, click here.

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