1. Montgomery County Government: Organizational and Fiscal Structure Jennifer Hughes, Director Office of Management and Budget October 15, 2012 www.montgomerycountymd.gov/omb

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3. 3 Oversight and Accountability Internal Audit (Executive Branch) Annual Audit of Financial Statements by an Independent Auditor (Executive Branch) CountyStat (Executive Branch) Inspector General (Legislative Branch) County Council & Committees (Legislative Branch) Office of Legislative Oversight (Legislative Branch) P-Card Monitoring and Reviews (Executive Branch - DOF) Media Elections and Referenda

4. 4 Major Differences Between the CIP and the Operating Budget CIP 6 year budget Approved biennially Infrastructure (roads & buildings) Long-life Often debt-financed Majority of spending is for sitework and construction Operating Budget 1 fiscal year Approved annually Programs and services Expenses typically ongoing Typically funded with current revenues Majority of spending is for staffing costs

5. 5 Budget Process Key Facts The County Executive develops and recommends budget proposals; the Council authorizes expenditures and sets tax rates. Annual 6-year Public Services Plan, Operating Budget, and Capital Budget, and biennial 6-year Capital Improvements Plan. Capital budget submitted to Council by January 15 th ; proposed Operating Budget by March 15 th. Aggregate budget cannot grow more than CPI-U Washington-Baltimore without a minimum of six Council votes. Executive veto or reduction of items in Council approved budget. 1990 Charter amendment limit on property tax revenues. Charter Limit exceeded four times: FY03-05 and FY09. As of 2008 Charter amendment, 9 council votes are required to exceed the Charter Limit.

6. 6 Summary: Operating Budget Process Sept-December: MCG departments prepare submissions December/January: Agencies submit budgets to County Executive/Council December – March: OMB reviews submissions and makes recommendations to County Executive March 15: County Executive transmits budget to the County Council Early April: County Council public hearings April – May: County Council/Committees review budgets By June 1: County Council approves budget

7. 7 FY13 ALL AGENCIES / ALL FUNDS WHERE THE MONEY COMES FROM TOTAL APPROVED RESOURCES - $5,106.2 (million) WHERE THE MONEY GOES * TOTAL APPROVED USES OF FUNDS - $5,106.2 (million) *This total covers the full Operating Budget, and funds to the CIP, Debt Service, and Reserves. Of this amount $4,612,253,211 is approved in the Operating Budget.

8. OPERATING BUDGET FY13 EXPENDITURES BY FUNCTION TAX SUPPORTED EXPENDITURES - $4,020.5 (million) TOTAL EXPENDITURES - $4,612.3 (million) *Total M-NCPPC includes $4.8 million debt service.

9. 9 FY13 Tax Supported Expenditures by Function

10. 10 Revenue Volatility: Income Taxes $ in Millions FY05FY06FY07FY08FY09FY10FY11FY12 Est.FY13 Est. Income Tax $940.9$1,044.6$1,265.4$1,291.3 $1,291.7 $1,042.1 $1,039.2 $1,227.1 $1,264.0

11. 11 Revenue Volatility: Transfer & Recordation Taxes $ in Millions FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Est. FY13 Est. Transfer $133.7 $145.5 $106.9 $ 80.4 $ 64.8 $ 77.1 $ 71.8 $ 74.2 $ 80.7 Recordation $ 87.6 $ 96.2 $ 72.7 $ 54.7 $ 42.4 $ 42.8 $ 57.7 $ 45.3 $ 55.9 Total $221.3 $241.7 $179.6 $135.1 $107.2 $120.0 $129.5 $119.5 $136.6

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