AGENDA ITEM #9.1
May 4, 2010
Introduction
MEMORANDUM
April 30, 2010
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative
Analyst~
Introduction:
Expedited Bill 33-10, Finance - Working Families Income
Supplement - Amount
Expedited Bill 33-09, Finance - Working Families Income Supplement - Amount, sponsored by
the Council President at the request of the County Executive, is scheduled to be introduced on
May 4, 2010. A public hearing is tentatively scheduled for May II at 1:30 p.m. A Management
and Fiscal Policy Committee worksession is tentatively scheduled for May 6 at 2:00 p.m.
Bill 33-09 would reduce the Working Families Income Supplement to 67% of any refund an
eligible recipient receives from the State-Earned Income Credit Program. The Executive
estimates that this action would reduce FYII expenditures by $5,394,100.
This packet contains:
Expedited Bill 33-10
Legislative Request Report
Memo from County Executive
F:\LAW\BILLS\1033 Working Families Income Supplement\Intro Memo.Doc
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Expedited Bill No.
33-10
Concerning: Working Families Income
Supplement-Amendment
Revised:
4/29/2010
Draft No. __
1_
Introduced:
May 4, 2010
Expires:
November 4, 2011
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _ _ _ _ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN EXPEDITED ACT
to:
(1)
amend the amount paid to recipients under the Working Families Income Supplement
Program; and
(2)
generally amend the Working Families Income Supplement Program.
By amending
Montgomery County Code
Chapter 20, Finance
Article XIV, Working Families Income Supplement
Section 20-79
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED
BILL
No.
33-10
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Sec. 1. Section 20-79 is amended as follows:
20-79. Amount of Supplement.
The amount of the Working Families Income Supplement paid to each
recipient must equal [the amount] 67% of any refund the recipient receives from
the State earned income credit program. The Executive, by regulations issued
under Method (1), may increase the amount of the Supplement.
Sec. 2.
Expedited Effective Date.
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The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
Approved:
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Nancy M. Floreen, President, County Council
Approved:
Date
Isiah Leggett, County Executive
This is a correct copy ofCouncil action.
Date
Linda M. Lauer, Clerk of the Council
Date
Ci:J
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LEGISLATIVE REQUEST REPORT
Expedited Bill 33-10,
Working Families Income Supplement
-
Amendment
DESCRIPTION:
This legislation reduces the Working Families Income Supplement to 67% of
any refund an eligible recipient receives from the State-Earned Income Credit
Program. This reduction would reduce FY -11 expenditures by an estimated
$5,394,100.
The County has experienced a severe reduction in revenue and must reduce
its FYll expenditures in order to balance the budget.
The estimated savings of $5,394,100 for FY 11 would help balance the
budget.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
Department of Finance.
FISCAL IMPACT:
To be requested.
ECONOMIC
IMPACT:
EVALUATION:
To be requested.
Subject to the general oversight of the County Executive and the County
Council.
Montgomery County is one of the few local jurisdictions in the nation
that provides a local income tax credit for its residents.
Joseph Beach, Director, Office of Management and Budget.
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMA TION:
APPLICATION
Applicable in all municipalities.
WITHIN
MUNICIPALITIES:
PENALTIES:
Certain provisions subject to a Class "A" violation.
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OFFICE OF THE COUNTY EXECUTIVE
Isiah Leggett
County Executive
ROCKVILLE. MARYLAND 20850
MEMORANDUM
April 27, 2010
TO:
Nancy Floreen, President
Montgomery County Council
Isiah Leggett, County Executive
Working Families Income Supplement - Amendment
FROM:
SUBJECT:
Montgomery County' is one of the few local governments
in
the nation that
provides a local earned income
tax
credit (EITC) for its residents. This progranl, which began in
FYOO at a cost of$2.2 million, was based on matching the State's refundable EITC which, at that
time, was 10% of the federal EITC. Participation in the program included 12,322 total recipients.
Since that time, the State match of the federal EITC has grown to 25% at an estimated cost in
FYll of$16.2 million to
be
paid to 30,505 recipients. The average EITC payment has grown
from $178 from FYOO to an estimated $530 in FYil.
In order to respond to the current fiscal crisis, I am reluctantly forwarding with
this memorandum legislation for Council consideration that would reduce this payment by 33%.
This reduction would create an estimated savings of$5,394,100 and would change the average
EITe
payment to $353, which is approximately the level this payment was
at
in
FY05.
As the Council is well aware, the County has experienced a severe reduction in
revenue
and
must reduce its FYll expenditures in order to balance the budget. If enacted, this
legislation will assist in balancing the FYl1 budget.
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