MD Budget fallout: counties will pick up more of the tab

GAITHERSBURG, Md. — More local taxes for Marylanders?

As the state finalizes its budget, to avoid deeper cuts, lawmakers pushed some costs onto local governments.

On Main Street in Gaithersburg, Maryland business owners are optimistic but worried budget cuts could force them to shave off from their bottom line.

“It’s a scary time,” Eric Julius of Royal Cut Kings Barbershop, said.

Julius said he has already noticed how federal cuts have affected his business and make it tough to run a Maryland business in this economy.

“The economy is being affected, because people don't know if they're gonna have a job tomorrow,” Julius said.

“With the things going on right now everybody's tightening their budget,” Gina Goldring of nearby Our Neighborhood Deli said. “Things are slowing down.”

Goldring’s deli serves New York-style sandwiches and a bodega atmosphere. These days she is also serving up some concern.

“We're a regular mom-and-pop small business shop we rely on everyone in the community to come out,” she said.

If the federal cuts aren’t enough, this week Maryland’s General Assembly signaled local counties and cities will have to shoulder more costs next year.

“The legislature is going to put some stuff on us,” Montgomery County Executive Mark Elrich said. “What we asked for is a tax increase that basically covers it.

Marc Elrich said the county had a choice – small property tax increases or cuts.

“I wanted to make sure we could fund as much as possible the services that we provide,” he said.

Last Friday, Elrich visited ‘Our Neighborhood Deli’ highlighting his support for small and women-owned businesses and to hear Goldring's concerns.

“We are going there we want small business to also know that we support them,” Elrich said.

Just down the street, news of potentially more fees and taxes has Eric frustrated about the future.

“These taxes are a real hit to the middle class,” he explained. “When that happens so many people are uncertain, they're unsure. I know that that hits me, ultimately, when it gets passed down from my landlord.”

In a time when the federal issues have hurt mom-and=pop shops, Montgomery County’s chief executive said they will try to shield them from state problems.

“We may be able to reduce the tax increase,” Elrich said. “We may be able to eliminate the tax increase, but I wanted to be sure that going into the budget.”

“We will know more on April 7,” the county executive said.