CNN host Fareed Zakaria stirred controversy last week when he delivered straight talk on why many jurisdictions like Montgomery County have become simultaneously unaffordable while operating on fiscal thin ice. He mentioned a number of familiar factors, but he articulated a particular problem quite well: The fact that the growth of Montgomery County’s budget and spending outstrip every other relevant growth factor from business growth and school enrollment to population growth. We know the County spends way too much, as evidenced by our structural budget deficit and the shocking doubling of the budget’s size over just the last decade. But when you compare the lack of growth in these other benchmarks to the steadily ballooning amount of spending, the County Council’s reckless budgeting looks truly ridiculous.
For example, looking at the supersizing of the County budget, you would think that Montgomery County was enjoying rapid population growth. But even as the budget has reached one record high after another, MoCo’s population has actually been shrinking. The County experienced a net loss of more than 9500 residents between 2020 and 2022, and an additional net domestic migration loss of another 11,153 people between 2022 and 2023. And of course, as we know, the very rich are exiting, and the majority of the people moving in are low-income.
“The arithmetic is brutal,” Zakaria said in describing a similar population loss (relative to size) over the same period in New York City. “A larger [tax] bill is divided among fewer payers.”…