Today we received the county executive’s proposed capital budget (called the CIP). This is a six year, $4 billion budget used for investments in new school buildings, county buildings, transit projects, roads, technology, and so forth—expenses that are not operating expenses (like compensation) but rather assets that we build.
The County Council will review the exec’s proposal intensively for the next two months or so and then final passage will be at the same time as the operating budget, in May.
Needless to say, my office, as well as activists and organizations around the county, are pouring through the details and assessing how various projects have fared. I’ll be commenting on these issues a lot in the coming weeks as we work through the details. This is also my first CIP, as the budget is on a two-year cycle.
One of the undercurrents of debate on this issue is the amount that the county borrows in order to fund the capital budget. I have been on the record saying that while I believe over the long term our borrowing will need to come down as our debt service costs are very high, this is not the year to start cutting back on construction spending. For example, MCPS has stated that school construction prices have dropped from more than $280 per square foot to $217. We should be taking advantage of that opportunity.
What the country and our county needs is for government at every level, Federal, state and local, to work together to boost economic activity. These projects create jobs right here in Montgomery County and of course they also create first-rate classrooms, greater mobility through enhanced transportation, stronger communities, and a better place to live.
Governor O’Malley has called for more capital spending at the state level, arguing that these projects will create jobs as well as improve the state’s economic position.
The county needs to pull its weight as well.