CHANGE MY LOCATION
Local
Multimedia News
Montgomery economy national reality
SEE THE LATEST ON THIS STORY
Related Topics: Washington, D.C.
)
A sluggish housing market, among other deteriorating economic indicators, in Montgomery County reflect what's happening nationwide.
In a dour forecast for the fiscal year to begin in July, Montgomery County Finance Director Jennifer Barret told the County Council this week that the index of regional stocks was down 18 percent in 2007, job creation slowed in all sectors, and the diving housing market is projected to continue this year,
In November, home sales were down 71 percent from the June 2005 peak in Montgomery County. The result was a combined 18.1 percent drop in property transfer and recordation taxes to $73.9 million from $90.2 million in the first half of fiscal year 2008.
That's just a slim portion of the $401 million budget gap predicted for Montgomery County's next fiscal year that kicks off in July. To fill the gap, Montgomery County Executive Ike Leggett proposed broad budget cuts. Those cuts, combined with Maryland Gov. Martin O'Malley's slices to the state budget, could mean ailing school buildings continuing to crumble and firetrucks taking longer to get to house fires.
And while unemployment remains relatively low, household surveys from the past year show that employment has declined, though income and consumption tax collections look to remain on target for the remainder of the county's fiscal year.
One promising note is that despite the slowdown in housing sales, property values rose 4.5 percent in November 2007, which in turn increased property tax collections by 4.9 percent from the first half of fiscal year 2007.
But national indicators show the housing market has yet to reach its bottom, and in Montgomery County, analysts say there are more homes on the market than there are buyers, which means residential construction, lagging nationally, could to take a dive locally, too.
Barret said housing sales are expected to begin a rebound in the second half of 2008.
Comments from Examiner Readers
2:12 PM MST on Sun., Mar. 23, 2008 re: "Tax hike, cuts in jobs, services possible in Montgomery County"
Report as inappropriate
5:09 PM MST on Tue., Mar. 18, 2008
re: "Tax hike, cuts in jobs, services possible in Montgomery County"
Report as inappropriate
Hardman for Council said:
If elected, I will do my best to keep property tax increases at -- or better yet, below -- the charter increase limit. I believe it's possible to cut back on a lot of programs, and still have them, just not have them breaking the backs and banks of the taxpayers. I think we need more accountability, and transparency and openness, and when the taxpayers see everything they're paying for, they'll be standing right there beside me declaring "this could be a lot more efficient" or "what does this person do to get paid that much?" We'll all be better off. I am also a very slow-growth/no-growth candidate, and think we have enough people and excess congestion here in Montgomery. I support road improvements but I prefer to move with all deliberate and AFFORDABLE speed to get things done without straining budgets.
1 agree | 1 disagree
Vote on this comment: I agree or I disagree
Robin Ficker Broker, Robin Realty said:
In the 2006 campaign for County Executive, I said that, "A Vote for Ike Leggett is a Vote to Raise Your Own Taxes!" How true! We are in a recession and have had increases in computer, car, sales, income and corporate taxes as well as hikes in Metro, water and electricity fee. And gas in headed to $4 a gallon. A property tax increase on top of this is folly. It will cause more foreclosures and price thousands out of the housing market. Pelple are having a tough time making ends meet as it is. Home assessments are above home values which have dropped. So we were bring overtaxed even brefore this, the biggest property tasx increase in a generation. SAVE OUR HOMES! Vote for Mark Fennel in the April 15 and May 13 special election for county council. Fennel hads pledged to stick to and not exceed the charter property tax limit. SAVE OUR HOMES!
4 agree | 2 disagree
Vote on this comment: I agree or I disagree