Montgomery County approves new $546M budget, includes county raises and property tax rate increase

Updated 2 hours ago
MONTGOMERY COUNTY, Texas (KTRK) -- In a 3-2 vote, Montgomery County commissioners approved a new $546 million budget on Tuesday for the 2026-2027 fiscal year.

The new budget includes pay parity for law enforcement, a 5% raise for all other county employees, and a higher property tax rate.

The budget increased by about $38 million. In 2025, it was $508 million.

The property tax rate went from $0.3770 last fiscal year to $0.3860 per $100 valuation.

"Depends on what the average cost of it is, but at the median rate your tax is going to go up between $2 and $3 a month," County Judge Mark Keough said.



Judge Mark said that as more people move to Montgomery County, changes are necessary.

"We have really done very much to keep our tax rate down versus the increase in our appraisals. See, part of the problem here is that we're increasing in value so much that the houses and all of our properties are going up in value," Judge Keough said.

The growth could be seen in new home construction throughout the county.

"Could be the fastest growing county in the country, could be the third fastest, doesn't really matter, we're growing really fast," Commissioner Ritch Wheeler with Montgomery County Precinct 3 said.

The budget also includes money for road and infrastructure projects and competitive wages for law enforcement, with over $3 million allocated.



The most contentious part, however, of the budget was the other county pay raises.

"We gave a 5% pay raise across the board to all employees; my fundamental problem with that, coming from a business background, is that we use pay raises to motivate employees to do a better job," Wheeler said.

Wheeler said he felt the raise could've been lower to use the funds elsewhere, adding that the fast-growing county is more than 80% unincorporated - one of the highest in the state.

"While we don't want to raise the tax rate - in fact, we would love to lower the tax rate to take care of them- the fact of the matter is that we're providing services that most people would normally associate with a city, but those cities have other revenue streams the county doesn't have," Wheeler said.
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