Montgomery County Maryland Operating Budget

Budget Year / Version:

Mission Statement

The mission of the Department of Finance is to prudently manage financial operations, recommend and implement sound fiscal policies, safeguard public assets, and encourage a safe environment on public property.

Budget Overview

The total recommended FY27 Operating Budget for the Department of Finance is $139,598,418, an increase of $1,615,410 or 1.17 percent from the FY26 Approved Budget of $137,983,008. Personnel Costs comprise 17.50 percent of the budget for 143 full-time position(s) and no part-time position(s), and a total of 135.74 FTEs. Total FTEs may include seasonal or temporary positions and may also reflect workforce charged to or from other departments or funds. Operating Expenses account for the remaining 82.50 percent of the FY27 budget.

The Finance operating budget is comprised of a General Fund component (the Director's Office and the Divisions of Fiscal Management, Treasury, Information Technology, and Controller) and the Division of Risk Management, which is funded by the Liability and Property Coverage Self-Insurance Fund. The total FY27 Operating Budget for the General Fund component is $22,017,356, an increase of $1,233,189 or 5.93 percent over the FY26 Approved Budget of $20,784,167. Personnel Costs comprise approximately 81.99 percent of the General Fund budget for 132 full-time positions. A total of 102.37 FTEs includes these positions as well as any seasonal or temporary positions and positions charged to or from other departments or funds. Operating Expenses account for the remaining 18.01 percent of the budget.

The total FY27 Operating Budget for the Self-Insurance Fund component of Finance (Risk Management) is $117,578,437, an increase of $379,569, or 0.32 percent, over the FY26 Approved Budget of $117,198,841. Personnel Costs comprise approximately 5.42 percent of the Self-Insurance Fund budget for 11 full-time positions. A total of 33.37 FTEs includes these positions as well as any seasonal or temporary positions and positions charged to or from other departments or funds. Operating Expenses account for the remaining 94.58 percent of the budget.

For FY27 Finance has the addtion of a new division- Finance Retirement Administration Division

Montgomery County Government maintains three retirement plans for its employees: a defined benefit pension plan, a defined contribution plan, and a deferred compensation plan for its employees and participating agencies. The Employees' Retirement System (ERS), Retirement Savings Plan (RSP), and Deferred Compensation Plan (DCP) are administered by the Department of Finance Retirement Administration Division (FIN RAD). FIN RAD oversees the administration of the retirement plans, including plan and benefits administration, accounting, and compliance. Investments are overseen by the Montgomery County Investment Board (MCIB). FIN RAD includes 14 full-time positions. 14.0 FTE reside in the Non-Departmental Accounts (NDAs) for the various retirement plans.

County Priority Outcomes

While this program area supports all eight of the County Result Areas, the following are emphasized:

Effective, Sustainable Government
A Growing Economy

Program Performance Measures

Performance measures for this department are included below (where applicable), with multi-program measures displayed at the front of this section and program-specific measures shown with the relevant program. The FY26 estimates reflect funding based on the FY26 approved budget. The FY27 and FY28 figures are performance targets based on the FY27 recommended budget and funding for comparable service levels in FY28.

Initiatives

Transition point of sales and online payment systems from the current vendor to JPMorgan Chase Merchant Services and Digital Bill Pay.
Upgrade the property tax billing system to the vendor's new software as a service.
Launch an improved driver's license program to ensure compliance with County policies.

Innovations and Productivity Improvements

Reorganized Retirement Member Services and Retirement Finance operations into FIN as the new Retirement Administration Division (RAD) to promote efficiency.
Upgraded the County's enterprise timekeeping and scheduling systems to the vendor's newer software as a service platform prior to the end-of-life of the prior products.

Program Descriptions

Operations and Administration

This program includes operational support for the department as well as the administrative portions of the Director's Office, the Division of the Controller, the Treasury Division, and the Division of Risk Management. The program provides support for efficient, effective, and timely accomplishment of the department's mission, including budget development and...

Fiscal Management

This program provides effective management of County capital and operating funds; and the fiscal analysis and issue management associated with master plan development, economic development, and legislative issues. It is also responsible for issuing and managing the County's financial obligations to fund the Capital Improvements Program and manage cash flow;...

Program Performance Measures	Actual FY24	Actual FY25	Estimated FY26	Target FY27	Target FY28
Make Office Vacancies Extinct (MOVE) Program: Square feet of office space leased	78,905	163,121	165,000	170,000	175,000
Interest Rate Benchmarking - County General Obligation (GO) vs. Municipal Market Data Index (basis point spread)	3	4	2
Investment Return Benchmarking - County Return vs. S&P Local Government Investment Pool Index (basis point spread)	10	13	10
Revenue Forecasting - Percent variance between actual revenue and projected revenue	3.60%	3.61%	0.00%
Investment Return - Rate of return on Montgomery County's investments ¹	5.34%	4.77%	3.85%
Bond Rating - Rating given to Montgomery County by Fitch, Moody's, and Standard and Poor's (Bond ratings are a measure of the quality and safety of a bond and are based on the issuer's financial condition)	AAA	AAA	AAA

Information Technology

This program provides planning, direction, and support for finance and core business systems, technology, and business processes to support the effective and efficient achievement of the department's mission. Activities are proactively coordinated with the Department of Technology and Enterprise Business Solutions, other County departments, vendors, and department staff to ensure...

Program Performance Measures	Actual FY24	Actual FY25	Estimated FY26	Target FY27	Target FY28
Electronic payments (credit card and ACH) transactions processed by the County's credit card processor and bank (000's)	5,230	4,994	5,044	5,094	5,094
Workflows, tasks, and processes streamlined utilizing existing or new technologies	20	18	20

Controller

This program provides effective management and support to the operations of Accounts Payable and Receivable; General and Grant Accounting; Financial Analysis, Audit and Compliance; and Timekeeping and Payroll. This program, through its operations, is responsible for overseeing expenditures and cash flow management; preparing timely and accurate annual financial statements and...

Program Performance Measures	Actual FY24	Actual FY25	Estimated FY26	Target FY27	Target FY28
Procurement Card transactions processed	31,689	28,887	30,000	30,000	30,000
Vendor payments issued ¹	126,881	124,605	125,000	125,000	125,000
Journal entries prepared	1,580	1,387	1,500	1,500	1,500
Journal entries reviewed and posted	3,565	3,491	3,500	3,500	3,500
Grant reports produced	1,105	1,061	1,000	1,000	1,000
Paychecks and payroll advices issued for employees ²	300,802	311,218	312,000	312,000	312,000
Pension and long-term disability (LTD2) payroll payments processed ³	80,638	81,271	82,000	82,000	82,000
Procurement Card rebate revenue generated	$749,297	$695,226	$700,000	$700,000	$700,000
Receive the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting ⁴	Received	Expected	Expected
Percent of non-compliant payments - Direct purchase orders created the same day as invoice date and duplicate dollars per total invoices	0.04%	0.03%	0.03%
Percent of payroll errors per sum of dollars under and overpaid	0.21%	0.22%	0.20%

Treasury

This program is responsible for providing coordination and oversight of treasury operations and customer services through the cashiering function. All money received by the County directly through the Treasury cashiering operation, from other County agencies, or through the internet and bank lockbox operation is processed, administered, and recorded in...

Program Performance Measures	Actual FY24	Actual FY25	Estimated FY26	Target FY27	Target FY28
Tax related number of service request tickets transferred from MC311 Call Center to Treasury ¹	4,170	5,580	5,000	5,000	5,000
Property tax accounts billed	368,076	368,097	370,000	375,000	375,000
Transfer tax transactions processed ²	29,441	42,089	42,500	42,500	42,500
Cashier transactions processed ³	40,126	38,935	40,000	40,000	40,000

Risk Management

The Montgomery County Self-Insurance Program, established under County Code Section 20-37, provides comprehensive property and casualty insurance for the County and participating agencies. The program pays all claims for Self Insured Workers' Compensation, General and Auto Liability, Auto Physical Damage, and Property matters. The program is funded through contributions from...

Program Performance Measures	Actual FY24	Actual FY25	Estimated FY26	Target FY27	Target FY28
Computer based/onsite training classes provided by the Safety Section	5,926	7,280	9,000	9,000	9,000
Workers Compensation - Cost per $100 of payroll	$3.21	$3.09	$3.13
Workers Compensation - Number of Montgomery County Government cases resulting in lost work time	362	348	448

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Visualize

2027 RECOMMENDED Budget

Archives

Data

Budget Snapshot

139.6M FY27 Recommended
Operating Budget

135.7 Full Time
Equivalents

Budget Trends

Program Contacts

Contact Jedediah Millard of the Department of Finance at 240-777-8855 or Abdul Rauf of the Office of Management and Budget at 240-777-2766 for more information regarding this department's operating budget.

Related Links

Montgomery County MD Home Page

Budget Summary

Title	Actual FY25	Budget FY26	Estimate FY26	Recommended FY27	%Chg Bud/Rec
COUNTY GENERAL FUND
EXPENDITURES
Salaries and Wages	11842387.00	13563269.00	12649142.00	14103005.00	4.0
Employee Benefits	3686796.00	3600188.00	3794077.00	3950504.00	9.7
County General Fund Personnel Costs	15529183.00	17163457.00	16443219.00	18053509.00	5.2
Operating Expenses	4948791.00	3620710.00	5083928.00	3966472.00	9.6
County General Fund Expenditures	20477974.00	20784167.00	21527147.00	22019981.00	5.9
PERSONNEL
Full-Time	114.00	114.00	114.00	132.00	15.8
Part-Time	0.00	0.00	0.00	0.00	0.0
FTEs	97.87	97.87	97.87	102.37	4.6
REVENUES
Other Charges/Fees	503099.00	513700.00	433150.00	434850.00	-15.3
Other Fines/Forfeitures	1610.00	0.00	0.00	0.00	0.0
Other Intergovernmental	453496.00	469910.00	469410.00	501130.00	6.6
Miscellaneous Revenues	695227.00	730000.00	700000.00	700000.00	-4.1
County General Fund Revenues	1653432.00	1713610.00	1602560.00	1635980.00	-4.5

SELF INSURANCE INTERNAL SERVICE FUND
EXPENDITURES
Salaries and Wages	4223578.00	4859439.00	4304177.00	5029792.00	3.5
Employee Benefits	1044467.00	1260218.00	1039654.00	1349400.00	7.1
Self Insurance Internal Service Fund Personnel Costs	5268045.00	6119657.00	5343831.00	6379192.00	4.2
Operating Expenses	83089634.00	111079184.00	111079184.00	111199245.00	0.1
Self Insurance Internal Service Fund Expenditures	88357679.00	117198841.00	116423015.00	117578437.00	0.3
PERSONNEL
Full-Time	11.00	11.00	11.00	11.00	0.0
Part-Time	0.00	0.00	0.00	0.00	0.0
FTEs	31.37	33.37	33.37	33.37	0.0
REVENUES
Self Insurance Revenues	94077147.00	92796252.00	92796252.00	94323702.00	1.6
Miscellaneous Revenues	692689.00	2000000.00	2000000.00	2000000.00	0.0
Investment Income	15315070.00	9526580.00	9526580.00	10894140.00	14.4
Self Insurance Internal Service Fund Revenues	110084906.00	104322832.00	104322832.00	107217842.00	2.8

GRANT FUND - MCG
EXPENDITURES
Salaries and Wages	0.00	0.00	0.00	0.00	0.0
Employee Benefits	0.00	0.00	0.00	0.00	0.0
Grant Fund - MCG Personnel Costs	0.00	0.00	0.00	0.00	0.0
Operating Expenses	-4209.00	0.00	0.00	0.00	0.0
Grant Fund - MCG Expenditures	-4209.00	0.00	0.00	0.00	0.0
PERSONNEL
Full-Time	0.00	0.00	0.00	0.00	0.0
Part-Time	0.00	0.00	0.00	0.00	0.0
FTEs	0.00	0.00	0.00	0.00	0.0
REVENUES
Federal Grants	-4209.00	0.00	0.00	0.00	0.0
Grant Fund - MCG Revenues	-4209.00	0.00	0.00	0.00	0.0

CAPITAL FUND
EXPENDITURES
PERSONNEL

DEPARTMENT TOTALS
Total Expenditures	108831444.00	137983008.00	137950162.00	139598418.00	1.2
Total Full-Time Positions	125.00	125.00	125.00	143.00	14.4
Total Part-Time Positions	0.00	0.00	0.00	0.00	0.0
Total FTEs	129.24	131.24	131.24	135.74	3.4
Total Revenues	111734129.00	106036442.00	105925392.00	108853822.00	2.7

FY27 Recommended Changes

Title	Expenditures	FTEs
COUNTY GENERAL FUND
FY26 ORIGINAL APPROPRIATION	20784167	97.87
Changes (with service impacts)
Add: Special District Tax Administration [Treasury]	180265	3.00
Add: Transportation Special Taxing District Implementation [Treasury]	50000	0.00
Reduce: Bloomberg - Access to Investment Data [Fiscal Management]	-56000	0.00
Other Adjustments (with no service impacts)
Increase Cost: FY27 Compensation Adjustment	642787	0.00
Increase Cost: IT Financial Systems Applications - Ongoing Software Maintenance [Information Technology]	336600	0.00
Shift: Position Transfer from TEBS Strategy and Planning Division to Department of Finance [Operations and Administration]	248708	1.00
Re-align: Position Between FIN Programs [Controller]	194815	1.00
Re-align: Position Between FIN Programs [Information Technology]	150339	1.00
Increase Cost: Annualization of FY26 Compensation Increases	84214	0.00
Increase Cost: Adjustment to Department of Environmental Protection Chargeback [Treasury]	58767	0.50
Increase Cost: Printing and Mail	25102	0.00
Increase Cost: Annual PCI and ACH Industry Compliance Audits [Information Technology]	7240	0.00
Increase Cost: UKG Contract - Ongoing Annual License and Maintenance Support [Controller]	3580	0.00
Decrease Cost: Change in Netgross Charges [Controller]	-28000	0.00
Decrease Cost: Retirement Adjustment	-44111	0.00
Decrease Cost: Change in Netgross Charges [Information Technology]	-52620	0.00
Decrease Cost: Change in Netgross Charges [Treasury]	-104610	0.00
Decrease Cost: Annualization of FY26 Personnel Costs	-116108	0.00
Re-align: Position Between FIN Programs [Controller]	-150339	-1.00
Re-align: Position Between FIN Programs [Information Technology]	-194815	-1.00
FY27 RECOMMENDED	22019981	102.37

SELF INSURANCE INTERNAL SERVICE FUND
FY26 ORIGINAL APPROPRIATION	117198841	33.37
Other Adjustments (with no service impacts)
Increase Cost: Claims Expense Change [Risk Management ]	5644000	0.00
Increase Cost: Commercial Insurance Premiums [Risk Management ]	1499190	0.00
Increase Cost: FY27 Compensation Adjustment	208940	0.00
Increase Cost: Other Insurance Costs [Risk Management ]	125902	0.00
Increase Cost: Annualization of FY26 Compensation Increases	35406	0.00
Increase Cost: Annualization of FY26 Personnel Costs	27733	0.00
Increase Cost: Rent Increase [Risk Management ]	4302	0.00
Increase Cost: Printing and Mail	2422	0.00
Decrease Cost: Motor Pool Adjustment	-8906	0.00
Decrease Cost: Retirement Adjustment	-12544	0.00
Decrease Cost: Insurance Broker Services [Risk Management ]	-14800	0.00
Decrease Cost: Claims Service Contract Administrative Costs [Risk Management ]	-212836	0.00
Decrease Cost: Return of Contribution [Risk Management ]	-6919213	0.00
FY27 RECOMMENDED	117578437	33.37

Program Summary

Program Name	FY26 APPR Expenditures	FY26 APPR FTEs	FY27 REC Expenditures	FY27 REC FTEs
Controller	8737572	51.87	8966058	51.87
Fiscal Management	2724087	11.00	2492735	11.00
Information Technology	2193345	4.00	2558468	4.00
Operations and Administration	12226700	15.37	6116993	16.37
Risk Management	108966149	28.00	116096312	28.00
Treasury	3135155	21.00	3367852	24.50
Total	137983008	131.24	139598418	135.74

Charges to Other Departments

Charged Department	Charged Fund	FY26 Total$	FY26 FTES	FY27 Total$	FY27 FTES
COUNTY GENERAL FUND
Alcohol Beverage Services	Liquor	90290	0.50	93910	0.50
Community Use of Public Facilities	Community Use of Public Facilities	60550	0.37	63030	0.37
Environmental Protection	Water Quality Protection	926912	6.00	945557	5.50
General Services	Central Duplicating (Printing & Mail)	8200	0.05	8540	0.05
Transportation	Leaf Vacuuming	247430	0.43	267340	0.43
Permitting Services	Permitting Services	16000	0.10	16650	0.10
Economic Development Fund	Economic Development Fund	190616	1.00	200945	1.00
Non-Departmental Accounts	Retirement Fund (ERS)	48660	0.30	2064366	11.40
Non-Departmental Accounts	RSP-Disability Benefits (LTD2)	1800	0.01	261040	1.56
Human Resources	Employee Health Self Insurance	122450	0.75	127460	0.75
Human Resources	Retiree Health Benefits Trust Fund	51000	0.30	138804	0.70
Parking District Services	Bethesda Parking	39410	0.24	41030	0.24
Parking District Services	Silver Spring Parking	44630	0.27	46460	0.27
Parking District Services	Wheaton Parking	15020	0.09	15620	0.09
Recreation	Recreation	53330	0.33	55510	0.33
Recycling and Resource Management	Solid Waste Disposal	607230	4.38	657260	4.38
Recycling and Resource Management	Solid Waste Collection	233690	0.64	254170	0.64
Total		2757218	15.76	5257692	28.31

Funding Parameter Items ($000s)

Title	FY27	FY28	FY29	FY30	FY31	FY32
COUNTY GENERAL FUND
EXPENDITURES
FY27 Recommended	22020.000000	22020.000000	22020.000000	22020.000000	22020.000000	22020.000000
No inflation or compensation change is included in outyear projections.
Annualization of Positions Recommended in FY27	0.000000	180.000000	180.000000	180.000000	180.000000	180.000000
New positions in the FY27 budget are generally assumed to be filled at least three months after the fiscal year begins. Therefore, the above amounts reflect annualization of these positions in the outyears.
Elimination of One-Time Items Recommended in FY27	0.000000	-50.000000	-50.000000	-50.000000	-50.000000	-50.000000
Items recommended for one-time funding in FY27, including (fill in major item names based on your Competition List), will be eliminated from the base in the outyears.
Labor Contracts	0.000000	57.000000	57.000000	57.000000	57.000000	57.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures	22020.000000	22207.000000	22207.000000	22207.000000	22207.000000	22207.000000
Labor Contracts	0.000000	1.000000	1.000000	1.000000	1.000000	1.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures	0.000000	1.000000	1.000000	1.000000	1.000000	1.000000

SELF INSURANCE INTERNAL SERVICE FUND
EXPENDITURES
FY27 Recommended	117578.000000	117578.000000	117578.000000	117578.000000	117578.000000	117578.000000
No inflation or compensation change is included in outyear projections.
Labor Contracts	0.000000	43.000000	43.000000	43.000000	43.000000	43.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures	117578.000000	117621.000000	117621.000000	117621.000000	117621.000000	117621.000000