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Mission Statement

The mission of the Economic Development Fund (EDF) is to assist private employers who are located, plan to locate, or substantially expand operations in the County. Each program under the EDF is administered by the Department of Finance and the prospective applicants are identified by the Montgomery County Economic Development Corporation (MCEDC), a nonprofit economic development organization created by the County in 2015.

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Budget Overview

The total recommended FY19 Operating Budget for the Economic Development Fund is $4,919,317, an increase of $808,579 or 19.67 percent from the FY18 Approved Budget of $4,110,738. Personnel Costs comprise 3.10 percent of the budget for no full-time position(s) and no part-time position(s), and a total of 1.00 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 96.90 percent of the FY19 budget.

Linkage to County Result Areas

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

  • Healthy and Sustainable Neighborhoods
  • Strong and Vibrant Economy

Accomplishments

  • Facilitated the retention and expansion of InfoZen, a provider of mission critical information technology services and solutions for the Federal government, to create 215 new jobs.
  • Provided more than $466,000 in Biotechnology Investment Incentive Tax Credit supplement grants in 2017 to 70 investors that support investment in 13 County-based early stage biotech companies to grow the biotechnology industry in the County.
  • Provided $110,895 in Cybersecurity Investment Incentive Tax Credit supplement grants in FY17 to two qualified cybersecurity companies for locating its headquarters and base operations in the County.
  • Provided approximately $537,500 in MOVE grants in FY17 to attract 20 companies occupying over 72,000 square feet of Class A and B office space and bringing 128 jobs to the County.
  • In FY18, the County has offered $1.3 million in incentives to six companies to facilitate $63 million in capital investment, retain 1,065 jobs, and bring 325 new jobs as of March 1, 2018.

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Initiatives

  • Enhance the Microlending Program by adding funds to provide County entrepreneurs with access to critical financing for their business expansion and growth.
  • Enhance business retention and expansion services by adding funds to disburse grant payment for United Therapeutics Corporation, Inc.
  • Continue funding support for the MOVE program to assist businesses, including craft breweries, cideries, wineries, and distillers, in leasing office space to support their growth.

  • Add funds to the Small Business Assistance Program to assist eligible small businesses adversely impacted by the County's Wheaton Redevelopment project.

Program Descriptions

  Economic Development Grant and Loan Program

The Economic Development Grant and Loan Program was established in FY96 to assist private employers who will either retain jobs already in the County or create additional jobs in the County through the expansion of current operations or relocation of new operations in the County. This program is administered by...

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  MOVE Program

The MOVE Program, part of the Economic Development Fund, is designed to accelerate business attraction, thereby reducing vacant office spaces in the County. It also provides an additional benefit for leasing vacant office space and renovation of aging commercial buildings in targeted areas of the County. The program is limited...

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  Biotech Credit Supplement

The Biotech Credit Supplement Program authorizes the County to provide a local supplement to the State of Maryland's Biotechnology Investment Tax Credit Program. Applicants that have received final tax credits under the State program and have invested in a company that has located its headquarters and base operations in Montgomery...

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  Small Business Assistance Program

The Small Business Assistance Program (SBAP) assists certain small businesses located in the County who are adversely impacted by a County-funded redevelopment project or a redevelopment project located on County-owned property, as required by Bill 6-12 adopted by the Montgomery County Council in 2012. Currently, only the small businesses located...

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Budget Trends
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Program Contacts

Contact Jedediah Millard of the Department of Finance at 240.777.8855 or Pofen Salem of the Office of Management and Budget at 240.777.2773 for more information regarding this fund.

Related Links
Budget Summary
TitleActual
FY17
Budget
FY18
Estimate
FY18
Recommended
FY19
%Chg
Bud/Rec
ECONOMIC DEVELOPMENT FUND
EXPENDITURES
Salaries and Wages73354.00120184.00 116155.00 121752.001.3
Employee Benefits18527.0023649.00 28759.00 30660.0029.7
Economic Development Fund Personnel Costs91881.00143833.00 144914.00 152412.006.0
Operating Expenses2391544.003966905.00 7153834.00 4766905.0020.2
Economic Development Fund Expenditures2483425.004110738.00 7298748.00 4919317.0019.7
PERSONNEL
Full-Time0.000.00 0.00 0.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs1.001.00 1.00 1.000.0
REVENUES
Investment Income26353.0038917.00 43260.00 61290.0057.5
Loan Payments168306.00134438.00 134438.00 134438.000.0
Miscellaneous Revenues26000.000.00 0.00 0.000.0
Economic Development Fund Revenues220659.00173355.00 177698.00 195728.0012.9
FY19 Recommended Changes
TitleExpendituresFTEs
ECONOMIC DEVELOPMENT FUND
FY18 ORIGINAL APPROPRIATION41107381.00
Changes (with service impacts)
Enhance: United Therapeutics [Economic Development Grant and Loan Program]5000000.00
Enhance: Microlending Program [Economic Development Grant and Loan Program]3000000.00
Enhance: Small Business Assistance Program [Small Business Assistance Program]2500000.00
Other Adjustments (with no service impacts)
Increase Cost: Annualization of FY18 Personnel Costs63470.00
Increase Cost: FY19 Compensation Adjustment22320.00
Decrease Cost: One-Time Incentive for Abt Associates, Inc. [Economic Development Grant and Loan Program]-2500000.00
FY19 RECOMMENDED49193171.00
Program Summary
Program NameFY18 APPR
Expenditures
FY18 APPR
FTEs
FY19 REC
Expenditures
FY19 REC
FTEs
Economic Development Grant and Loan Program28607381.0034193171.00
MOVE Program7500000.007500000.00
Biotech Credit Supplement5000000.005000000.00
Small Business Assistance Program00.002500000.00
Total41107381.0049193171.00
Charges to Other Departments
Charged DepartmentCharged FundFY18
Total$
FY18
FTES
FY19
Total$
FY19
FTES
ECONOMIC DEVELOPMENT FUND
CIPCapital Fund1200001.001200001.00
Future Fiscal Impacts ($000s)
TitleFY19FY20FY21FY22FY23FY24
ECONOMIC DEVELOPMENT FUND
EXPENDITURES
FY19 Recommended4919.0000004919.0000004919.0000004919.0000004919.0000004919.000000
No inflation or compensation change is included in outyear projections.
Labor Contracts0.0000001.0000001.0000001.0000001.0000001.000000
These figures represent the estimated annualized cost of general wage adjustments, service increments, and other negotiated items.
Subtotal Expenditures4919.0000004920.0000004920.0000004920.0000004920.0000004920.000000