Retiree health fund tapped to MCPS budget, avoiding income tax hike

MONTGOMERY COUNTY, Md. - An income tax increase is off the table in Montgomery County after council leaders joined with public school officials to announce they’ve figured out a solution that would fund virtually all the school system’s budget needs without raising income tax. 

By the numbers:

An earlier proposal called for an increase in the local income tax rate — from 3.2% to 3.3%. For someone earning $100,000, that’s about $100 more a year — or roughly $2 a week.

County Executive Marc Elrich said the money was needed for Montgomery County Public Schools.

But on Tuesday, members of the county council and Montgomery County school officials — who faced public ire over the tax hike — announced they’ve come up with a way to fund MCPS’s $3.65 billion budget request without raising income taxes.

Schools will be allowed to draw down funds from a retiree health benefit trust...

https://www.fox5dc.com/news/retiree-health-fund-tapped-mcps-budget-avoiding-income-tax-hike