County scrambles to find a solution to unforeseen budget shortfall
ROCKVILLE — Montgomery County Executive Isiah Leggett directed County departments to make two percent cuts after the discovery of a $120 million budget shortfall.
The cuts are meant to make up for $95 million in projected income tax receipts that won’t be collected for the current fiscal year, combined with last year’s budget shortfall of $20 million, the total comes to roughly $120 million missing from the County’s budget, which Leggett noted is an unusual occurrence considering that the decrease in tax revenue comes as Montgomery County’s unemployment rate has simultaneously decreased.
“The traditional wisdom is when you have higher employment and a larger tax base you don’t normally see those kinds of shifts,” Leggett said. “What we’re doing is analyzing why you have a shortfall in the income tax.”