Montgomery County commissioners wrapped up several days of budget talks Aug. 13 with a roughly $552.7 million working budget for fiscal year 2026-27, adding about $15.4 million in expenses to the preliminary spending plan while proposing a higher property tax rate.
The preliminary budget filed in July totaled $537.3 million and included about $6.28 million in unallocated funding for commissioners to distribute during workshops. The budget has not been formally adopted, with commissioners expected to return Sept. 8 for public hearings and final action.
By the numbers
A major piece of the final workshop discussion centered on employee pay and staffing.
The working budget includes a 5% across-the-board pay increase and continued law enforcement pay parity beginning in June 2027. Commissioners also added positions to the Sheriff’s Office and constable offices, with 15 newly added positions ultimately identified across those departments, including patrol deputies, an Internet Crimes Against Children investigator and other support positions. Three County Clerk positions were also included.
Commissioners also worked in $300,000 for additional information technology staffing and funding for County Clerk staffing after hearing department requests throughout the workshops.
County Judge Mark Keough said his goal throughout the discussion was to meet department needs while keeping the county at or below the de minimis tax rate, which is a property tax rate that lets certain local governments collect more money for operations without automatically requiring voter approval.
“I think this is workable,” Keough said during the Aug. 13 discussion. “I believe [it] is going to give pretty much everybody pretty close to what they want, and still keep us where we want it to be.”
What they’re saying
The 5% raise drew some disagreement from Precinct 3 Commissioner Ritch Wheeler, who argued the county could instead use some of the money for additional staffing.
“There’s a lot of other departments that need employees,” Wheeler said, pointing to the roughly $3 million difference between a 3.5% and 5% increase.
Wheeler reiterated his position when commissioners later voted on the proposed tax rate.
“I do not agree with a 5% across-the-board raise,” Wheeler said. “I don’t think that’s a COLA [cost of living adjustment]. I think that’s a merit raise.”
Other commissioners supported keeping the 5% increase, noting that non-law enforcement employees did not receive the same pay increases law enforcement received in the previous budget cycle.
As previously reported by Community Impact, the county began the workshops with employee compensation, public safety and law enforcement pay parity among its major budget considerations.
The county’s certified taxable value for FY 2026-27 is about $109.27 billion, while its no-new-revenue rate is $0.3706 per $100 valuation.
Zooming in
Following the workshop, commissioners voted 3-2, with both Wheeler and Precinct 4 Commissioner Matt Gray voting against, to move forward with a proposed tax rate of $0.3860 per $100 valuation, which officials identified as the county’s de minimis rate. The rate consists of $0.3415 for maintenance and operations and $0.0445 for debt service.
The proposed rate is higher than the county’s current $0.3770 rate but remains below the estimated $0.4136 voter-approval rate.
The vote only sets the maximum rate commissioners are currently considering—it does not formally adopt the tax rate or budget.
Budget Officer Amanda Carter also cautioned commissioners that some of the decisions made this year will carry additional costs into FY 2027-28. Carter estimated about $7.59 million in expenses are already expected for that budget because of the remaining months of law enforcement pay parity and staggered start dates for positions approved this year.
“If values stayed about the same ... you already have $7.6 [million] that you’ve already allocated,” Carter said, warning commissioners to consider recurring expenses that may be added throughout the coming year.
What’s next?
Commissioners scheduled the public hearing on the proposed tax rate for 9 a.m. Sept. 8. A budget public hearing and final budget consideration are also expected that day.
Closing the workshops, Keough acknowledged that commissioners did not agree on every decision.
“We agree to disagree, but we continue to always work together,” Keough said. “We’ve done good work here over the last few days.”
