Evening star., 1955-02-27
70 10 3OCent
TaxRiseLikeIy
InMonfgomerY
Reese and Council
Plan Initial Round
Of Budget Sessions
By Chorles L. Hoffman

pY $uuItSS he ItoItUtuh
Property owners in Mont
gomery County are facing a pos
sible 20 to 80 cent increase in the
present $1.98 per 500 combined
State and county tax rate.
1t could 60 even higher.
That is the prospect as new
County Manager M. L. Reese and
the new all Democratic County
Council prepare for the first
round of budget sessions. The
rate will be set in June.
Some county officials privately
say that even the 30-cent fore
cast might be exceeded unless
the manager and the council
adopt a firm stand in handling
school and departmental re-
quests.
No Surplus Available.
This year the council will have
no assessment windfall or big
surplus to hold down the tax
rate, officials say.
Last June the council, on the
eve of the primary elections
dipped into as SIS million surplus
to take $465,000 for operating
expenses. The result was a six
cent tax increase instead of the
13-cent raise the budget called
for without the surplus.
Some $685. 900 was left in sur
plus as an emergency fund. Off
cials doubt that the surplus will
be increased substantially this
year because of close revenue
estimates.
Estimates are that the assess
able base will jump only about
$45 million to a. total of $755
million by June 30.
That means for every $75,50O
present budget expenditures are
increased, the council must raise
the tax rate one cent. New reve-
nue. will amount to about $780,
900.
Bond Payments to Rise.
Payments on the county's
bonded Indebtedness next year
will go up some $250,000 requir-
ing an additional 3.5 cents on
the tax rate.
The State real estate property
tax rate will be doubled, adding
another SIS cents to the combined
tax rate.
The biggest headache will be
In the school budget.
The recent proposal of School
Superintendent Forbes H. Norris
for an operating budget of SAP
million compared with this years
$1l.6 million shocked even the
most pessimistic Of fiscal officials
DR.. Norris said his proposal
would call for the county to put
up sos million. STA million
more than the county is spending
this year.
Despite an additional 81 mil
lion in State aid, DR.. Norris said
the school tax rate would be
SLAB or a 20-cent increase over
the present rate.
While pupil enrolment is ex-
pected to go up II per cent DR..
Norris requests for various func-
tions were 10 to 26 per cent
higher.
Cost of New Teachers.
The taxpayer will be hardest
hit by his proposals for a So
million increase in instructional
services to provide for 220 new
teachers, 28 specialists, 10 addi-
tional supervisors and Is teach
ers for handicapped children
and raises for all teachers.
New teachers would enter the
county service at an average
$1,000 a year.
Other departments are ex-
pected to ask for increases. About
100000 will be needed to meet
normal pay incrementS of the
county's 738 classified employees
The final blow as far as fiscal
officials are concerned would be
the success of liquor distillers in
their effort to boycott the coun-
tvs liquor dispensary system.
If the boycott continues, Off
cials say the county will lose
some $450,000 in dispensary
profits which would have to be
covered by a seven-cent tax rate
increase.
Pressure also is being exerted
in the State Legislature to re-
quire the county to levy a five
cent tax to support its library
system before it would be elegible
for State aid. That would mean
another 1.5-cent increase, ofti-
cials glumly report.