Montgomery County officials unveil $285.7 million FY2027 budget and propose 5¢ property tax increase

County Administrator Angie Hill told the joint meeting of the Montgomery County Board of Supervisors and the Montgomery County School Board on March 16 that she is proposing a $285,700,000 fiscal year 2027 budget and recommending a 5¢ increase in the real-estate tax rate, bringing the rate to $0.81 per $100 of assessed value.

Hill said estimated new revenue for the year is just over $1,000,000 and noted that base revenues are lower than in recent years because of reduced interest income, shifts in the distribution of school-age population among towns and the county, and several businesses relocating outside the county. "For the past three years new revenue has ranged from $5 million to $7 million annually; this year it is lower," she said.

Hill also explained a structural change in the budget presentation: the Montgomery County Public Service Authority (PSA) is being included in the county budget as a utility department and PSA employees will transition to county utility-department employees. That change increases both county revenues and expenditures by $2,400,000 but, Hill said, "there's no increase in taxpayer dollars and there's no net impact to the budget" because the added revenue and expenditure offset each other.

After removing the PSA-designated funds, Hill said the total new revenue this year would split roughly 67% to schools and 33% to the county. She walked through a series of charts showing revenue sources and how school funds, capital and debt-service are displayed differently because school systems in the Commonwealth are not legally able to issue debt.

Public-safety staffing and service changes were a focal point of the county presentation. Hill recounted multi-year additions to public-safety staff — including 10 school resource officers since 2019 and eight deputy positions added to operate the county jail in 2025 — which she said amount to roughly $2,000,000. She also said about $5.4 million has been allocated since FY2022 to fund fire and EMS as volunteerism declined and the county moved to provide 24/7 career EMS coverage in parts of the county.

Hill closed by noting opportunities for citizen input and that the boards will have further chances to review and discuss the proposal, including a regular board meeting on April 13 with an opportunity for a budget work session.

What happens next: Board members asked for clearer and earlier distribution of presentation materials to allow both members and the public time to prepare. The county and school boards agreed to continue budget discussions and hold follow-up work sessions as needed.