Montgomery County proposes $285.7 million FY27 budget, recommends 5‑cent real estate tax increase

County Administrator Angie Hill proposed a $285.7 million fiscal year 2027 budget to the Montgomery County Board of Supervisors on March 9, 2026, recommending a 5‑cent increase to the real‑estate tax rate — from 76¢ to 81¢ per $100 of assessed value — to help fund schools, public safety and county operations.

"For FY27, I'm proposing a budget of $285.7 million," Hill told the board, saying the proposal would allocate roughly $190.7 million — about 67% of the total — to Montgomery County Public Schools. Hill said the plan would also fund a 3% compensation increase for county employees and add seven new positions (six full‑time, one part‑time) recommended as part of a multi‑year staffing plan.

Mark McGreder, the county’s director of management and budget, presented the revenue and expenditure detail, saying the proposal counts on $14.2 million in new revenue (about $7.4 million undesignated and $6.8 million designated). McGreder said the proposed 5‑cent tax increase generates approximately $6.4 million in new local revenue; total requests from county and schools amounted to about $16.6 million, he said, leaving a funding gap that would require a larger tax rate to fully fund all requests.

Key budget elements in the proposal include: schools receiving 67% of the proposed budget; public safety representing about 11%; a proposed 3% across‑the‑board pay increase for county employees; funding for a new utilities division supported by PSA revenue ($2.4 million); and a $69.4 million transfer to school operating funds. McGreder said next steps include a joint meeting with the school board on March 16, establishing the advertised tax rate at the March 23 meeting, a public hearing on April 9 and budget adoption on April 20.

Public comment at the meeting included a speaker who urged full funding of the school request to narrow the county’s gap with state per‑pupil spending. At the end of the meeting Vice Chair Physicowski said he was "a little disappointed" by the proposed 5‑cent increase and encouraged citizen feedback ahead of the public processes.

The board did not vote to adopt the budget March 9; the proposal advances the schedule toward the advertised rate and public hearing dates outlined by staff.