In this Article, the following terms have the meanings indicated: (a) "Operating budget" means the total amount appropriated from current operating revenues for the ensuing fiscal year, including any current revenue funding for capital projects. (b) "Aggregate operating budget" means the operating budget, minus any amounts appropriated for: (1) enterprise funds; (2) the Washington Suburban Sanitary Commission; (3) expenditures equal to tuition and tuition-related charges estimated to be received by Montgomery College; and (4) any grant which can only be spent for a specific purpose and which cannot be spent until receipt of the entire amount of revenue is assured from a source other than County government. (c) "Council" means the County Council.

(a) General. The Council must adopt spending affordability guidelines for the operating budget in accordance with this Article. (b) Content. The spending affordability guidelines for the operating budget must specify: (1) a ceiling on funding from ad valorem real property tax revenues; and (2) a ceiling on the aggregate operating budget. (c) Procedures. (1) The Council must adopt spending affordability guidelines for the operating budget by resolution not later than the second Tuesday in February of each year. (2) The Council must hold a public hearing before it adopts the guidelines under paragraph (1). (3) The Council may delegate responsibility for monitoring relevant affordability indicators to the Council’s standing committee with jurisdiction over spending affordability matters.

(a) Factors. In adopting guidelines, the Council should consider, among other relevant factors, the condition of the economy, the level of economic activity in the County, trends in personal income, and the impact of economic and population growth on projected revenues. (b) Advice. To assist the Council in adopting guidelines, the Finance Director must each January, and at other times as necessary, consult with independent experts, who need not be County residents, from major sectors of the County economy. The experts should advise on trends in economic activity in the County and how activity in each sector of the economy may affect County revenues. The Director must report the experts’ views, if any are received, to the Executive and Council.

Any aggregate operating budget that exceeds the ceiling on the aggregate operating budget adopted under Section 20-60(c) requires the affirmative vote of 8 Councilmembers for approval.

(a) Applicability. For each fund or budget included in the aggregate operating budget, in the resolution adopted under Section 20-60(c)(1) the Council must adopt separate budget allocations for County government, the Board of Education, Montgomery College, and the Maryland-National Capital Park and Planning Commission, and for debt service and current revenue funding of capital projects. (b) Expenditure Reductions. If a budget submitted to the County Council exceeds a budget allocation adopted under subsection (a), the County Executive (for the County government budget) and the governing board of the agency that prepared the budget must recommend by March 31: (1) prioritized expenditure reductions that would be necessary to comply with the adopted budget allocation; and (2) a summary of the effect on the agency’s program of the recommended prioritization. (c) Added Information. If the Executive or an agency submits a proposed amendment to the operating budget to the Council after the Executive has submitted the annual budget, and the proposed amendment would cause the budget for County government or the agency to exceed the budget allocation adopted under subsection (a), the Executive or the respective agency must include with the amendment the information required in subsection (b).