MCCC Committees Briefed on County's Structural Budget Deficit Study

Posted Date: 
January 31, 2011

Montgomery County is facing a long-term structural budget deficit that will require major, permanent adjustments in order to achieve a balanced operating budget each year. The County’s Office of Legislative Oversight recently presented a two-part report to the County Council that outlines the extent of the challenge and provides a variety of possible solutions, most notably through reductions in “per-employee costs” for employees of all County agencies, especially in areas of compensation related to health care and pension costs.

Today, OLO Director Karen Orlansky and members of her staff gave a presentation on their findings and recommendations at a joint meeting of the Chamber’s Economic Development and Legislative Affairs committees.

MCCC Economic Development Committee Vice-Chair William Robertson of Adventist Health Care and Co-Chair Stewart Edelstein of The Universities at Shady Grove, and Legislative Affairs Committee Co-Chair Josh Bokee were joined by a packed room full of committee members who participated in a dialogue with the OLO team and two members of the County Council – Council President Valerie Ervin and Councilmember Hans Riemer – who were also in attendance.

In looking at the factors that are predominantly driving the County’s structural deficit, OLO has presented a series of issue papers on the following topics:

  • Employee salaries
  • Retirement/pension benefits
  • Health benefits for active employees
  • Health benefits for retired employees
  • Workforce size
  • Operating expenses
  • Debt service
  • Revenue

The entirety of the two-part OLO study – with the complete set of recommendations for tackling the deficit – can be found on the County website at:




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