Montgomery County Commission shelves discussion on sales tax diversion plan

A controversial proposal to divert 10% of the county’s sales tax revenue from Montgomery public schools to the Montgomery County Commission has been shelved, at least for now.

The change, championed by Montgomery County Commission Chairman Doug Singleton, was first discussed at the county commission’s Dec. 16 meeting. The proposal called for redirecting 10% (amounting to about $42 million) of the sales tax that now goes to Montgomery Public Schools and Pike Road Schools to the county commission.

Singleton said in January that the funds could be used for Jackson Hospital and the Montgomery County Sheriff’s Office.

The resolution was tabled in January after the county commission was met with a packed room of teachers and parents opposing the resolution. The Montgomery Public Schools system launched a “Save Our Penny” campaign when the idea was announced, arguing that the diversion would force them to cut staff and services to students.

The resolution required a majority vote of the council to bring it back up for discussion at the April 7 meeting. The vote failed on a 3-2 vote.

Singleton voiced his disappointment after the vote kept the issue off the commission’s agenda.

“A one-cent sales tax is something we’ve been working with – the Montgomery Public Schools, the Town of Pike Road, the Pike Road school system – since July,” Singleton said. “And even though we had finally come to an agreement that nobody likes, it is an agreement. They have all recognized the need of the county to fund public safety, to fund public health care and to fund economic development, quality of life.”

Singleton said that he would continue to push for it to be passed in the future. 

The county commission also delayed its participation in a federal grant program for small businesses. The action comes after the Montgomery City Council approved allocating $3 million of American Rescue Plan Act or ARPA funds to small businesses that were affected by the COVID pandemic.

The county commission decided to hold off on participating in the program, even though businesses must apply soon.  

Singleton and Commissioner Isiah Sankey said the consulting company is being paid too much to administer the program.

“I just have a lot of concerns about this program,” Singleton said. “A million of the five million (dollars) will be spent on administrative before anybody except one small business gets money.”  

Sanky said he is “not trying to hold this process up,” but he wanted “to get most of the money into the hands of the small business people.”

The Montgomery County Commission meets on the first and third Tuesday of the month at 101 South Lawrence Street. Information sessions begin at 10 a.m. followed by the formal meeting.

Livestreamed meetings can be seen on the commission’s YouTube and Facebook pages.