Montgomery County Executive Proposes 6.3% Property Tax Increase

Proposal includes $3.8 billion for schools, $152.7 million for affordable housing, and investments in public safety, transportation, and climate initiatives

Mar. 14, 2026 at 1:20pm

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Montgomery County Executive Marc Elrich has released his recommended Fiscal Year 2027 operating budget, outlining spending priorities for education, housing, public safety, health services, transportation, climate initiatives, and economic development while aiming to maintain the county's long-term fiscal stability. The proposal includes a 6.3 cent property tax increase dedicated to Montgomery County Public Schools and a 0.1 percentage point increase to the county income tax rate to help offset rising costs for services and investments.

Why it matters

The budget reflects growing needs in Montgomery County amid economic uncertainty, rising costs, and increasing pressure on the services residents depend on. It aims to protect essential services while maintaining the county's long-term fiscal stability through strategic investments in areas like public education, affordable housing, public safety, and climate action.

The details

The proposed $3.8 billion budget for Montgomery County Public Schools fully funds the school system's request and increases support by $189.9 million compared to the current fiscal year. It also includes $152.7 million for affordable housing initiatives, continued funding for health and human services programs, and investments in public safety, transportation, and climate initiatives. To balance the budget, the proposal includes the property tax and income tax increases.

  • The County Council will review the proposal over the coming months before adopting a final budget in May.
  • The new fiscal year will take effect on July 1.

The players

Marc Elrich

The Montgomery County Executive who released the recommended Fiscal Year 2027 operating budget.

Montgomery County Public Schools

The school system that will receive $3.8 billion in funding under the proposed budget.

Montgomery County Council

The governing body that will review the budget proposal and adopt a final budget in May.

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What they’re saying

“This budget reflects a simple reality: Montgomery County continues to face growing needs at a time of economic uncertainty, rising costs, and increasing pressure on the services residents depend on every day.”

— Marc Elrich, Montgomery County Executive

“Montgomery County Public Schools thanks the County Executive for his budget recommendation, which significantly increases operational funding for our school system and recognizes the essential needs of our students and staff.”

— Thomas W. Taylor, Ed.D., M.B.A., Montgomery County Public Schools Superintendent

“Once again, County Executive Elrich has demonstrated real leadership and a deep commitment to students, educators, and strong public schools; it is easy to make these commitments when times are good, it takes real courage in tough times like these.”

— David Stein, Montgomery County Educators Association President

What’s next

The County Council will review the proposal over the coming months before adopting a final budget in May.

The takeaway

This budget proposal aims to maintain essential services and make strategic investments in areas like public education, affordable housing, public safety, and climate action while also addressing the county's long-term fiscal stability through targeted revenue enhancements and expenditure reductions.