Update on Fiscal Plan and Economic Indicators

Tomorrow we will get our six-month update on the County’s fiscal plan and economic indicators. We expect to hear that compared to the June 2012 edition, current fiscal projections for FY13-14 are essentially unchanged. Therefore, a balanced County budget in FY14 would require a 1.0 percent reduction in overall agency spending, but because of State maintenance of effort requirements for MCPS and Montgomery College, spending for M-NCPPC and County Government would decline by 4.9 percent. In the June update this decline was slightly larger, 5.2 percent. To hear the full report, tune in to County Cable Montgomery (CCM—Cable Channel 6 on Comcast and RCN, Channel 30 on Verizon) at 10:00 tomorrow morning. The meeting also will be streamed through the County Web site.

Foreclosure Prevention Workshop

Do you know someone who has lost income due to unemployment or medical problems and has fallen behind on mortgage payments? The Montgomery County Department of Housing and Community Affairs and the Maryland Department of Housing and Community Development will co-host a free workshop on Monday, August 8 from 3 to 8 p.m., to assist those faced with possible mortgage foreclosures. The workshop will take place at the Silver Spring Civic Building, One Veterans Place, Silver Spring. Register now at www.mdhope.org and click on “Attend the Montgomery County EMA Workshop,” or call 410-514-7324.

Home Values up in County Despite National Trend

While housing prices nationwide fell to their lowest level since 2002, home values in the Washington region gained 4.3 percent in the last year, according to research from our Planning Department. In Montgomery County, median house prices also continued to rise.

That stands in contrast to the losses in housing prices experienced by all other regions, save a small gain in Seattle. According to the Standard and Poors Case-Shiller Index, national housing prices fell 4.2 percent in the first quarter of the year. House prices had started to rebound in 2009 and early 2010.

The D.C. region and Montgomery County continue to counter the trend. The most recent data for median sales prices in the county shows a price of $483,000 in 2010, a 5-percent increase over the median price of $460,000 in 2009.

While the housing index report indicates the strength of the local economy, it also exposes limited opportunities for homebuyers. Planners looking to provide a diverse set of housing options for Montgomery County’s newest residents say the high house prices here challenge moderate- and low-income would-be home buyers.

While the county has seen progress on improving the housing balance, current master planning efforts are looking at providing more opportunities for a range of unit sizes and tenure. For example, as White Flint builds out under the guidance of the recently approved White Flint Sector Plan, planners expect a balanced housing mix that will attract Gen X and Y as well as young couples and seniors looking to downsize.

My Priorities for the Coming Year

I'm humbled and gratified by having been elected Council President yesterday. With Valerie Ervin as Vice President, this is the first time since the 1995-96 term that the Council has had two female officers. I was sworn in immediately after the vote and will serve for one year.

I plan to focus on the economy as my top priority, as the County now faces a reality check. Our unemployment rate is higher than it has been in our recorded history. Our citizens have less with which to pay their bills, so we have less revenue to pay the County's bills. Anybody who balances a checkbook knows that we must make sacrifices and tighten our belts.

To achieve that, I will focus on three priorities this year. First, we need the County Executive to send us an aggressive cost cutting plan for the rest of the fiscal year. We have wonderful programs, but we can only provide those that the taxpayers, our bosses, can pay for. Second, I ask all of my colleagues to make sure that for every piece of legislation we consider, we carefully examine its fiscal costs and the economic impact on our residents. No new regulation is "free" or without some burden on taxpayers. Third, we need to engage in a full court press on advancing the County 's economic development goals.

At the entrance to my office, I keep a plaque with my favorite Winston Churchill quote, "Never, never, never give up." That speaks to me of the spirit and guts that our citizens bring to their lives every day. But Churchill was not just tough. He was also smart. So I pledge to follow another one of his observations, "Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen."

On that note, I encourage you to let me know your thoughts as we move into the new year. You can e-mail me at councilmember.floreen@montgomerycountymd.gov. Yes, our challenges are big this year, but they aren't bigger than our commitment and our ability to solve them if we all work together. I know we can keep Montgomery County on track as the great place it is to live and work.

Change We Better Believe in

You'll find my op-ed column in today's Gazette. I've also reprinted it here:

Tough times should focus us all on what is important. When the economy is strong maybe we can endure a political conversation that focuses on peripheral issues and takes for granted our prosperity and high-quality basic services. But not now.

As Montgomery County faces the stark reality of falling home values, private sector layoffs, empty storefronts and dire economic predictions for the future, we must take stock of where we are and where we need to go. We always have valued a high quality of life. We usually measure this by the success of our schools, our diversity, our parks and the depth of community engagement in all things great and small.

That quality comes at a price. Despite the county's reputation for having an uninviting business climate, we have been fortunate to have a vital business sector as the backbone supporting a wide range of services. Yet our success has inflated both the cost of doing business and the cost of our housing, pricing out jobs and would-be residents, causing long commutes and road congestion. As the fiscal horizon continues to darken, government needs to reassess past practices so we can continue to support our expensive mission.

Economic development issues need to take priority. This means long-term policies that continue to work over time, not just the short-term injection of cash from the federal stimulus. Recently, Hilton Hotels chose to locate in Fairfax County, Va., to take advantage of tax incentives and a business-friendly environment. We need to start winning bidding wars with the Hiltons of the world, and we need to revamp our processes to encourage, not hinder, job growth.

We also need to support the elements of community that help us all succeed. We can do this at no cost to the taxpayer and to the benefit of many. For example, by creating incentives for the growth of child care providers, we make it possible for parents to go out and earn a paycheck. And why not make it easier for homeowners to have accessory apartments? That would have multiple benefits — allowing seniors to age in place and helping cash-strapped families pay their bills while providing the affordable housing our workers need.

We must change the way Montgomery County functions. If we are to continue to satisfy our community's high expectations for quality of life, let's focus on "yes," not "no." With more jobs and a stronger support system for them, we can spread the tax burden across a larger base, enhance our work-life balance, promote entrepreneurship, encourage diversity and ultimately make the county a more affordable place to live.

A practical economic plan will pay for all that is good in our community. That's what sustainability really means, and that's the change we all should believe in.