Montgomery County Commissioners have unanimously approved a $632.7 million operating budget for the 2026 fiscal year, which includes a tax increase of approximately 4 percent. This decision was made during a board meeting on Thursday, marking the first unanimous budget vote in nearly a decade.
Commissioners emphasized the importance of collaboration in achieving this budget, particularly amid challenges such as the recent federal government shutdown and a prolonged stalemate within the Pennsylvania General Assembly. Chairman Neil Makhija stated, “Together on this we committed to collaboration… because we both found significant savings across the board, and we still invested in all the things that matter to our residents.”
Budget Details and Community Impact
Makhija highlighted the board’s focus on projects that support vulnerable residents, including ongoing social services initiatives in behavioral health and housing. Following the vote, he noted that the budget reflects a commitment to the community’s well-being. “This is something that was not easy, but we’ve done all this by working together and staying focused on the issues,” he added, referencing plans for supportive short-term housing facilities and the construction of a new emergency behavioral health crisis center.
Commissioners also expressed pride in how the budget aligns with the values of Montgomery County residents. Chairwoman Jamila Winder remarked, “I think this budget aligns with our values and the values that many hold dear in Montgomery County,” emphasizing that the investments made will benefit future generations.
Budget preparations began in the spring, with Chief Financial Officer Dean Dortone initially reporting a deficit of $55.9 million. Commissioner Tom DiBello noted that this deficit would have resulted in an estimated 18 percent tax increase, a scenario that none of the commissioners would have supported.
To address the budget gap, officials identified operational savings, including a $2 million reduction in benefit costs and a $1.2 million decrease in operating costs. The county’s plan includes raising the millage rate from 5.252 mills to 5.462 mills, which is expected to generate an additional $12 million in revenue. The budget also draws $13.5 million from the county’s fund balance to help close the deficit.
The proposed tax increase will lead to an average annual rise of approximately $36 for homeowners in Montgomery County, based on a market value of $556,600 and an assessed value of $171,200.
Community Reactions and Concerns
During public budget hearings earlier this month, residents voiced their opinions regarding the proposed budget. While some praised the county’s support for essential programs, others expressed concerns about the financial burden of another tax increase. A Hatfield resident, Sandra Levine, articulated worries about hardworking families struggling to make ends meet with rising living costs.
Similarly, Michelle Engarto, a resident of Lower Salford Township, expressed her apprehensions about fiscal responsibility. She urged county leaders to balance support for vital programs with the need to ease the financial pressures on taxpayers.
Another resident, David Morgan, voiced his concerns over the initial projected deficit of $55.9 million, questioning why the community was not made aware of such significant financial challenges sooner. Commissioner DiBello acknowledged the difficulties inherent in requesting additional funds from residents, especially given the tax increases seen in neighboring counties.
“We will continue to work to ensure we’re judicious in terms of how we’re spending taxpayer dollars, and we’ll continue to find opportunities for savings,” Winder concluded, expressing gratitude for the collaborative effort that led to the budget’s approval.
In addition to the operating budget, the commissioners also approved a $255.75 million capital fund for 2026 and allocated $5.3 million for the employee retirement fund. Programs designed to assist eligible residents on fixed or low incomes include the Real Estate Tax Deferral Program and the Pennsylvania Department of Revenue’s Property Tax/Rent Rebate Program. More information about these initiatives can be found at montgomerycountypa.gov/finance.
