MFPITEM#7
May 6,2010
Worksession
MEMORANDUM
May 4,2010
TO:
FROM:
SUBJECT:
Management and Fiscal Policy Committee
Amanda Mihill, Legislative
Analys~~Ld
Worksession:
Expedited Bill 33-10, Finance - Working Families Income
Supplement - Amount
Expedited Bill 33-10, Finance - Working Families Income Supplement Amount, sponsored by
the Council President at the request ofthe County Executive, was introduced on May 4,2010. A
public hearing is tentatively scheduled for May 11 at 1:30 p.m.
Bill 33-10 would reduce the Working Families Income Supplement to 67% of any refund an
eligible recipient receives from the State-Earned Income Credit Program. In his transmittal
memorandum, the Executive estimates that the average earned income tax credit payment would
be $530 in FYII. If the Council enacts Bill 33-10, the Executive estimates that the average
payment would be reduced to $353. The Executive estimates that this action would reduce FYIl
expenditures by $5,394,100 (©4). The Committee is expected to recommend the amount of the
supplement when its reviews the Working Families Income Supplement Non-Departmental
Account at its meeting on May 4 at 3 :00 p.m.
Issue for Committee Discussion
As noted above, the Council has not yet held a public hearing on Bill 33-10 and Council staff is
not aware of any correspondence that the Council received on this supplement. In reviewing Bill
33-10,
Council staff recommends
that the bill not list a specific reduction in the law and
recommends the following amendment:
The amount of the Working Families Income Supplement paid to each recipient
must equal [the amount1 [[67%11 the amount of any refund the recipient receives
from the State earned income credit program or another amount approved in the
annual operating buciget or a Council resolution. [[The Executive, by regulations
issued under Method
(1),
may increase the amount of the Supplement.]1
This language would retain the amount of the supplement at equal to the State earned income
credit, but would also provide the Council flexibility to determine a different amount by
 PDF to HTML - Convert PDF files to HTML files
resolution. The Council would also not have to enact legislation if the Council wants to adjust
the amount of the credit in the future.
If the Committee supports Bill 33-10, then Council staff recommends doing so with the above
amendment.
This packet contains:
Expedited Bill 33-10
Legislative Request Report
Memo from County Executive
F;ILAWIBILLSlI033 Working Families Income SupplementlMFP Memo.Doc
Circle
1
3
4
2
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No.
33-10
Concerning: Working Families Income
Supplement-Amendment
1_
Revised:
4/29/2010
Draft No. __
Introduced:
May 4,2010
Expires:
November 4, 2011
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _ _ _ _ _ _ _ __
ChI _ _, 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:
 PDF to HTML - Convert PDF files to HTML files
EXPEDITED BILL
No,
33-10
1
Sec. 1. Section 20-79 is amended as follows:
20-79. Amount of Supplement.
2
3
4
5
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.
6
7
8
9
10
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:
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
G
\..:(\LAWlBILLS\1033 Working Families Income Supplement\Bill1 ,Doc
 PDF to HTML - Convert PDF files to HTML files
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 FYI1 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
INFORMATION:
APPLICATION
Applicable in all municipalities.
WITHIN
MUNICIPALITIES:
PENALTIES:
Certain provisions subject to a Class "A" violation.
F:\LAW\BILLS\1033 Working Families Income Supplement\Legislative Request Report,Doc
 PDF to HTML - Convert PDF files to HTML files
OFFICE OF THE COUNTY EXECUTIVE
Isiah Leggett
County Executive
ROCKVILLE, MARYLAND 20850
MEMORANDUM
April 27, 2010
TO:
FROM:
SUBJECT:
Nancy Floreen, President
Montgomery COlUlty Council
Isiah Leggett, COlUlty Executive
Working Families Income Supplement - Amendment
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 progra.n:l, 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 ElTC. 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
FYII 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 FYl1.
In order to respond to the current fiscal crisis, I am reluctantly forwarding with
this memorandmn 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
ElTC payment to $353, which is approximately the level this payment was at in FY05.
As the Council is well aware, the COlUlty has experienced a severe reduction in
revenue and must reduce
its
FYII expenditures in order to balance the budget. If enacted, this
legislation will assist in balancing the FYI I budget.
lL:tjs
 PDF to HTML - Convert PDF files to HTML files
MFPITEM#7
May 6,2010
Worksession
MEMORANDUM
May 4,2010
TO:
FROM:
SUBJECT:
Management and Fiscal Policy Committee
Amanda Mihill, Legislative
Analys~~Ld
Worksession:
Expedited Bill 33-10, Finance - Working Families Income
Supplement - Amount
Expedited Bill 33-10, Finance - Working Families Income Supplement Amount, sponsored by
the Council President at the request ofthe County Executive, was introduced on May 4,2010. A
public hearing is tentatively scheduled for May 11 at 1:30 p.m.
Bill 33-10 would reduce the Working Families Income Supplement to 67% of any refund an
eligible recipient receives from the State-Earned Income Credit Program. In his transmittal
memorandum, the Executive estimates that the average earned income tax credit payment would
be $530 in FYII. If the Council enacts Bill 33-10, the Executive estimates that the average
payment would be reduced to $353. The Executive estimates that this action would reduce FYIl
expenditures by $5,394,100 (©4). The Committee is expected to recommend the amount of the
supplement when its reviews the Working Families Income Supplement Non-Departmental
Account at its meeting on May 4 at 3 :00 p.m.
Issue for Committee Discussion
As noted above, the Council has not yet held a public hearing on Bill 33-10 and Council staff is
not aware of any correspondence that the Council received on this supplement. In reviewing Bill
33-10,
Council staff recommends
that the bill not list a specific reduction in the law and
recommends the following amendment:
The amount of the Working Families Income Supplement paid to each recipient
must equal [the amount1 [[67%11 the amount of any refund the recipient receives
from the State earned income credit program or another amount approved in the
annual operating buciget or a Council resolution. [[The Executive, by regulations
issued under Method
(1),
may increase the amount of the Supplement.]1
This language would retain the amount of the supplement at equal to the State earned income
credit, but would also provide the Council flexibility to determine a different amount by
 PDF to HTML - Convert PDF files to HTML files
resolution. The Council would also not have to enact legislation if the Council wants to adjust
the amount of the credit in the future.
If the Committee supports Bill 33-10, then Council staff recommends doing so with the above
amendment.
This packet contains:
Expedited Bill 33-10
Legislative Request Report
Memo from County Executive
F;ILAWIBILLSlI033 Working Families Income SupplementlMFP Memo.Doc
Circle
1
3
4
2
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No.
33-10
Concerning: Working Families Income
Supplement-Amendment
1_
Revised:
4/29/2010
Draft No. __
Introduced:
May 4,2010
Expires:
November 4, 2011
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _ _ _ _ _ _ _ __
ChI _ _, 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:
 PDF to HTML - Convert PDF files to HTML files
EXPEDITED BILL
No,
33-10
1
Sec. 1. Section 20-79 is amended as follows:
20-79. Amount of Supplement.
2
3
4
5
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.
6
7
8
9
10
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:
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
G
\..:(\LAWlBILLS\1033 Working Families Income Supplement\Bill1 ,Doc
 PDF to HTML - Convert PDF files to HTML files
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 FYI1 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
INFORMATION:
APPLICATION
Applicable in all municipalities.
WITHIN
MUNICIPALITIES:
PENALTIES:
Certain provisions subject to a Class "A" violation.
F:\LAW\BILLS\1033 Working Families Income Supplement\Legislative Request Report,Doc
 PDF to HTML - Convert PDF files to HTML files
OFFICE OF THE COUNTY EXECUTIVE
Isiah Leggett
County Executive
ROCKVILLE, MARYLAND 20850
MEMORANDUM
April 27, 2010
TO:
FROM:
SUBJECT:
Nancy Floreen, President
Montgomery COlUlty Council
Isiah Leggett, COlUlty Executive
Working Families Income Supplement - Amendment
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 progra.n:l, 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 ElTC. 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
FYII 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 FYl1.
In order to respond to the current fiscal crisis, I am reluctantly forwarding with
this memorandmn 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
ElTC payment to $353, which is approximately the level this payment was at in FY05.
As the Council is well aware, the COlUlty has experienced a severe reduction in
revenue and must reduce
its
FYII expenditures in order to balance the budget. If enacted, this
legislation will assist in balancing the FYI I budget.
lL:tjs