Montgomery County Executive Ike Leggett has not ruled out $30 million in pay raises for most county employees, although the county faces a budget gap of more than $760 million.
Leggett is crafting next fiscal year’s budget and negotiating contracts with labor unions. At a recent meeting with the County Council, Leggett emphasized the dim outlook for the next budget but declined to say whether he plans to cut merit raises, known as step increases.
“We’re still in negotiations,” Leggett said.
Montgomery County’s employees have been fortunate compared with other jurisdictions in the area. They have not been forced to take unpaid leave, and have faced only one year without a general wage adjustment raise, which appears likely to be repeated this year.
During the current fiscal year, roughly two-thirds of the county’s work force received step increases of about 3.5 percent.
But this year, with the county’s budget deficit ballooning to more than three-quarters of a billion dollars, step increases aren’t likely to happen, according to Councilman Phil Andrews, D-Gaithersburg/Rockville.
“Pay increases of any kind next year are clearly unaffordable,” Andrews said, adding that the public would not support raises for public employees when funding for many county services is expected to be slashed.
A complete pay freeze, including step increases and general wage adjustments, would save the county more than $150 million.
Complicating matters is the school board budget that includes an increase of $25.9 million for salary costs, including step increases.
If the County Council reduced the school board’s approved budget, it would run the risk of running afoul of a state school funding law. But if the county’s teachers receive step increases, it’s likely that other labor unions would seek a similar raise.
Last year, the teachers union’s decision to forgo a general raise paved the way for similar concessions from other unions. This year, the opposite could happen.
“If anyone emerges with any economic improvement, then my position will be that the county will have to match that, period,” said Gino Renne, president of the Municipal and County Government Employees Organization, which represents county government employees.
Leggett is scheduled to present his budget March 15.
