MFP Committee Will Begin Examining Whether County Should Have a Long-Term Goal of a 10 Percent Reserve
ROCKVILLE, Md., June 14, 2010—On May 27, the Montgomery County Council adopted a $4.3 billion total County operating budget for Fiscal Year 2011 that concluded the most difficult budget year since the adoption of the current County Charter in 1968. On Monday, June 14, the Council’s Management and Fiscal Policy (MFP) Committee will begin to examine one of several proposals that could help the County lessen problems if it encounters difficult budget years in the long-term future.
The MFP Committee, which is chaired by Duchy Trachtenberg and includes Councilmembers Valerie Ervin and Nancy Navarro, will meet at 9:30 a.m. Monday in the Seventh Floor Hearing Room of the Council Office Building at 100 Maryland Ave. in Rockville. The meeting will be televised live by County Cable Montgomery (CCM—Cable Channel 6 on Comcast and RCN, Channel 30 on Verizon) and also will be available via streaming through the County Web site at www.montgomerycountymd.gov.
County Executive Isiah Leggett in May proposed having the County increase its reserve to 10 percent of adjusted governmental revenue. If the plan is adopted, the reserve could be gradually increased over a nine-year period. The FY11 budget will include a 6 percent reserve.
An increased reserve would better position the County in case of dramatic decreases in revenue, such as the combined decreases that created a budget shortfall of almost $1 billion before the Council achieved a balanced budget for FY11. Another benefit of an increased reserve would be to strengthen the County’s position when financial institutions determine the County’s bond rating.
No comments:
Post a Comment