Montgomery County commissioners got a look Aug. 6 at a roughly $537.3 million preliminary budget for fiscal year 2026-27, with several days of budget workshops set to begin Aug. 11.
The preliminary budget, filed July 27, totals $537,298,232, an increase of about $29.2 million from the county’s $508.1 million adopted FY 2025-26 budget. Budget Officer Amanda Carter said the proposal was built around the county’s current tax rate of $0.3770 per $100 valuation and includes about $6.28 million in unallocated funding that commissioners can direct toward priorities during workshops.
Carter said commissioners could leave the money unallocated and come in below the current tax rate, use a portion of it and remain below the rate, or “allocate all of it, and be at the current tax rate.”
Spending beyond that amount would require cuts elsewhere or a higher rate, she said. The county’s proposed 2026 tax rate has not yet been set.
A closer look
Priorities include employee step increases, continued funding for the detention officer pay program, increased employee health insurance costs and startup expenses for the new 523rd District Court. The county is budgeting a $19,000 employer insurance contribution per employee, up from $18,450, as discussed.
The county is also preparing to absorb several positions previously funded through American Rescue Plan Act dollars as those funds expire Dec. 31. Carter said 80% of those staffing costs are included in county funding, with the remaining 20% targeted to ARPA through the end of the year.
Tax revenue is projected at about $405.2 million, up roughly 4.9% from $386.3 million in FY 2025-26. Carter said about 3.3% of that increase is tied directly to new growth. The county’s general fund balance has also climbed in recent years, ending FY 2025-26 at about $72.7 million, compared with roughly $57.9 million in FY 2022-23.
By the numbers
County departments requested 103 new positions totaling about $12.8 million, although Carter stressed those requests are not necessarily included in the preliminary budget.
Of those requests, 46 are for law enforcement, 19 are tied to the newly approved 523rd District Court and supporting offices, 11 are for information technology and six are for justice of the peace offices.
Law enforcement and corrections account for 44.8% of proposed expenditures, while legal and judicial functions account for another 7.8%. The sheriff’s office is among the departments seeing the largest increase, with its preliminary budget rising by nearly $6 million before project costs, according to Carter’s presentation.
What’s next?
Commissioners will begin hearing FY 2026-27 budget requests at 9 a.m. Aug. 11, with workshops continuing as necessary each day through Aug. 14.
There is no set daily end time listed on the agenda. Discussions will also include the certified appraisal roll, the 2026 tax rate and the county employee medical plan.
The workshops will be held at the Alan B. Sadler Commissioners Court Building, 501 N. Thompson St., fourth floor, Suite 402, Conroe. Each workshop day will include an opportunity for public comment.
