Montgomery County lawmakers narrow 2026 budget gaps, defer major insurance decision

Montgomery County lawmakers returned from an executive session on Oct. 28 and spent the evening taking straw votes on dozens of proposed amendments to the tentative 2026 county budget, leaving several staffing and grant lines in place while deferring a final decision on a large health‑insurance increase.

The discussion, framed by concerns over use of county fund balance, began after the legislature resumed public session. Legislator Hedwell Junior warned that “we're using a lot of fund balance,” and urged caution about relying on reserves to stay under the tax cap. Treasurer‑staff and finance staff described the county’s fund‑balance picture during the debate; staff reported last year’s use of roughly $7 million from reserves and said the county’s total fund balance was “in the high‑20s” (million) in 2024.

Why it matters: members said the choice to add large, recurring costs now would raise the risk of much larger tax increases in future years if health‑insurance costs or other expenditures materialize. Several members asked staff for a consolidated, clean budget “sheet” after tonight’s straw votes so the body can see the net effect before a final vote.

Most of the evening’s changes were technical or targeted. Staff and legislators agreed to keep two insurance/deductible contingency lines, but move them into the legislature cost center for accounting clarity. Members kept a CHIPS‑funded highway oversight position after the highway superintendent described how the role helps prevent contract overbilling and protects paving assets. A previously defunded community health nurse line was restored to the worksheet after a prolonged discussion on recruitment and civil‑service classification; staff and the director of public health said they will propose either a reclassification or a pay adjustment if that improves hiring prospects.

On pay policy, legislators debated Resolution 265, a proposed revision to the non‑bargaining personnel policy that would affect salary authorizations. Several members argued salary changes should be adopted by separate resolution rather than buried in the budget; the legislature voted to table Resolution 265 to next month so staff can reconcile the proposed personnel policy with the budget amendments.

Several other salary and title adjustments were discussed on the floor: - A previously elevated finance position will be reviewed; members said they want duties demonstrated before retaining a higher pay grade and otherwise will revert to a business‑manager level. - A confidential‑secretary stipend and a county‑attorney salary tweak were discussed. Staff said both items are addressed in the proposed non‑bargaining policy; the legislature agreed not to finalize those changes until the policy and budget are reconciled.

On process and next steps, legislative staff said they will prepare a consolidated budget worksheet reflecting tonight’s straw votes and email it to members for review. Chair Michael J. Pepp said the body will reconvene or vote after members have had an opportunity to examine the clean sheet.

No final appropriations were adopted at this meeting; the session produced line‑level guidance, straw votes and directions to staff for follow‑up rather than binding budget action. The legislature also sent routine, noncontroversial resolutions forward during the meeting, and asked the executive and civil‑service staff to move ahead on classification questions needed to support any reclassifications.

Provenance: discussion begins at 00:27:06 in the transcript and continues through 02:28:51, including the fund‑balance exchange and the community health nurse debate.

Ending: Members instructed staff to circulate a consolidated, corrected budget worksheet and deferred any final, systemwide increases to medical insurance until clearer cost estimates are available.