Montgomery Council Passes Austere $1.58 Billion Budget
The Montgomery County Council adopted a $1.58 billion budget yesterday that members acknowledged will barely cover the cost of government, despite deep cuts in services and increases in various taxes and fees.</br></br>The budget vote came on the heels of a straw vote by council members tentatively approving a tax on new construction that developers say would be the first of its kind on the East Coast. County officials said the construction tax, to start in April, is needed to raise up to $22 million a year for roads and other public improvments.</br></br>Developers, however, strenously oppose the tax, alleging that it would discourage development by adding thousands of dollars to the cost of new houses and commercial projects.</br></br>"This will, absolutely, in this market, put builders out of business," said Robert L. Mitchell, president of C-I/Mitchell & Best Co., a home builder in Rockville. "We are having a difficult enough time selling our houses because of the recession. It will have a profound affect on affordable housing in Montgomery."</br></br>Council members said they will take final action on the construction tax proposal this summer. If adopted, it would impose a fee of $1 to $4 a square foot on almost all types of construction.