County Council Passes Creative Solution to Help Solve Construction Funding Shortfall
In a unanimous vote on May 18, the Montgomery County Council approved an additional funding source for the Capital Improvements Program that will allow MCPS to move forward with plans to create the classroom space needed for increased enrollment. It also will allow the district to revitalize older school buildings and invest in maintaining and repairing aging infrastructure. If the Council had not taken this action, numerous school construction projects would have been delayed over the next few years.
The County Council approved an increase in the school increment portion of the recordation tax—the tax paid when a house or building is sold, or if the mortgage on a house or building is refinanced. The bill passed by the Council increases this portion from $1.25/$500 to $2.00/$500 of the home sale price. This $.75 cent increase will generate an estimated $125 million over the next six years. By taking this bold step, the County Council has helped prevent delays to key school projects.
Read the Board’s full blog post here.