Montgomery County releases proposed 2026 Budget and Capital Improvement Plan

The Montgomery County Commissioners released the Proposed 2026 General Fund Budget and Five-Year Capital Improvement Plan (2026-2030) at this week’s Board of Commissioners’ meeting in Norristown. Driven by data, responsive to residents' needs, conscious of both increased demands and rising costs, the proposed budget ensures that Montgomery County can provide the highest level of service in a fiscally responsible way. The proposed budget would be balanced with a combination of new revenue, strategic cost-containment measures, and fund balance reserves. 

“This proposed budget reflects months of hard work and collaboration to deliver a balanced, fiscally responsible plan that advances our strategic goals. Thanks to support from our new Office of Innovation and Strategic Performance, we’ve taken a more sophisticated, transparent, and data-driven approach that ensures every dollar is working for our residents,” said Neil Makhija, Chair of the Montgomery County Board of Commissioners. “Like organizations and households across the country, Montgomery County has been navigating the realities of inflation and rising costs, as well as new mandates from Harrisburg that don't come with funding to fulfill them. So we've focused on how to save money: whether that’s renegotiating with our prescription vendor to save $1.4 million dollars, or reducing the costs of our legal spending by $450,000.” 

“This proposed budget is an investment in people, possibility, and the future of Montgomery County. It reflects our core values and our commitment to building communities where everyone can thrive,” said Jamila Winder, Vice Chair of the Montgomery County Board of Commissioners. “From the very beginning, my top priorities have been looking out for our most vulnerable residents, creating opportunities that breathe new life into our main streets, and driving policy that allows us to build a stronger County workforce. This budget does just that, and I’m looking forward to hearing feedback from the public.” 

“When we began this process, we faced a nearly $56 million deficit. That was unacceptable, so we've been very focused over the last several months on how we can reduce costs,” said Thomas DiBello, Montgomery County Commissioner. “That meant prioritizing the things that matter most and seeing what other revenue sources we can leverage, like going after grants, to minimize our expenses. I’m happy to see the proposed budget presented cuts the deficit down by half, but there is always more work we can do to ensure we're being fiscally responsible.” 

The 2026 Proposed General Fund Budget and Capital Improvement Plan are designed to meet the needs of a growing county. Montgomery County’s population has increased by over 7% since 2010, outpacing Bucks and Delaware Counties and on par with Chester County. The county’s population, currently at more than 856,000 residents, is expected to be nearly 950,000 by 2050.  

Montgomery County’s growth is proof that more families, professionals, and businesses see it as their community of choice in the region. And as more people choose Montgomery County, demands on County services increase each year. For example, the County has seen an 11% increase in 9-1-1 calls and a 10.5% increase in EMS incidents in recent years, according to data by the Department of Public Safety. The County has responded to a 58% increase in individuals needing County services for intellectual disabilities, mental health, substance use, or homelessness assistance since 2016. The justice system has also seen increased demand, with a 31.3% increase in Protection from Abuse (PFA) filings and a 17.7% increase in civil action cases.  

Despite these rising demands, Montgomery County operates with fewer full-time employees per capita (3.2 per 1,000 residents) than Bucks (3.4), Delaware (4.9), and Chester (3.9), and maintains the lowest per capita discretionary spending in the region.  

Much like families, businesses, and organizations across the country, the County is also responding to rising costs of inflation and challenging market conditions. Healthcare costs have increased by 18% over the last two years, as many with private health insurance may be aware. The County’s healthcare expenditures this year were 10% higher than expected, driven by both higher utilization and national price trends. These increases in personnel costs, including healthcare and benefits, are over $19 million. The 2026 budget accounts for the increasing costs of everyday goods and services, over $5.3 million in rising contractual costs, $3.6 million in debt service, and $5.3 million in housing priorities and supportive housing programs. The budget also addresses mandates by state and federal governments that require higher service levels without providing funding to meet them. This includes unfunded legislation like PA Acts 44 and 108, which require additional staffing in Adult and Juvenile Probation Offices.  

In light of these cost drivers, the County has taken an intentional approach to strategic cost containment. Beginning in early 2025 with a projected deficit of $56 million, the County worked diligently with department leaders to reduce that gap to $25.5 million through disciplined cost containment and operating savings, restricted and unrestricted fund balance usage, and improved revenue performance. For example, the County’s operating savings includes $2 million in healthcare and benefit cost reductions, $1.2 million in operating costs, $1.3 million in structural efficiencies, $700,000 in eliminated vacant employee positions, and $450,000 in legal fee reductions. This county-wide initiative was led by the Office of Innovation, Strategy, and Performance, which is also supporting the rollout of key performance indicators (KPIs) for departmental programs. Going forward, these KPIs will allow for better evidence-based decision making for resource allocation across the County.  

The Proposed 2026 General Fund Budget and Capital Improvement Plan is available at montgomerycountypa.gov/finance. The budget is also available in a storybook version from OpenGov, which highlights key investments according to the four pillars of the County’s strategic plan. Highlights include:  

Communities for All   

• $3.6 million for three new transitional housing facilities in Lansdale, Norristown, and Pottstown, as well as critical shelter services during extreme winter weather.  
• $35 million for the maintenance and upgrade of 131 bridges and 75 miles of roads, supporting the safe travel of upwards of 250 million vehicles each year. 
• $16.6 million to improve and maintain 6,000 acres of the County’s public parks, trails, and historic sites that over 3 million people visit each year.  
• $600,000 for the expansion of the County’s widely-used hazardous waste collection program to meet resident demand.

Public Health & Safety 

• $7.2 million to support the purchase of new emergency communication radios for police, fire, and EMS departments, resulting in faster response times and better coordination among law enforcement agencies. 
• $500,000 for a pilot program to upgrade security protocols for Magisterial District Judge (MDJ) courts around the County.  

Improvements to the justice system through expanded staffing and emerging technologies for the District Attorney’s Office and the Public Defender’s Office, ensuring timely case processing and equitable representation, as well as mandated additional staffing in Adult and Juvenile Probation Officesto meet state requirements under PA Acts 44 and 108. 

Opportunities for All 

• $2 million to support the revitalization of Montgomery County’s main streets through low-interest loans, targeted market analysis, and small business grants paired with technical assistance. 
• $250,000 for the County’s first-time homebuyers program, which offers support to low- to moderate-income households by assisting with down payment and closing costs.  
• $4.5 million for the renovation of the Trail Junction Center in downtown Norristown to create inclusive spaces that boost local businesses and enhance quality of life for residents and visitors.

Government for All 

• $1.7 million for the purchase of electronic pollbooks for all of Montgomery County’s voting precincts to improve the safety and security of elections after successful pilots in two recent elections. 
• $5 million to implement modern systems across County departments to improve operational efficiency, optimize workflows, and deliver faster, more reliable services to residents. 
• $1.5+ million to support our County workforce, including minimum wage compensation, paid parental leave for new parents, and fertility treatment benefits up to $50,000. These policies strengthen working families while setting a new standard for workplace benefits for private organizations and public entities in the region and beyond.
   

With the lowest per capita discretionary spending ($419) in the region, Montgomery County homeowners are paying the lowest rates among all the homeowners in the SEPA suburbs. Montgomery County’s prudent spending control has allowed the County to maintain its Aaa credit rating from Moody’s, a rating given only to the top 5% of counties nationwide, and which Montgomery County has maintained for the eighth consecutive year. 

In order to support ongoing services for its constituents that benefit their daily lives, and to balance the budget as required by law for county governments, the County is recommending a multi-pronged approach that combines new revenue with cost containment strategies and fund balance usage. The 2026 General Fund Budget proposes $12 million in new revenue and $13.5 million from fund balance. The County’s proposed real estate tax millage rate of 5.642 mills equates to a 4% property tax increase, adding approximately $36 per year for the average homeowner. This intentional strategy of revenue, cost savings, and reserves allows Montgomery County to meet rising service demands while safeguarding its strong financial position. 

The Proposed 2026 Budget also reflects a requested increase in funding for the Montgomery County Community College. The College requests an increase in its dedicated real estate tax from 0.39 mils, which has remained unchanged for eight years, despite rising tuition costs. The proposed increase to 0.49 mils equates to a $17 annual increase for the average homeowner and generates an additional $6.2 million in funding for the College. This brings the County’s total contributions to $30 million, aligning with the state’s contribution and fulfilling the guidance outlined in the PA Community College Act of 1963, which emphasizes a shared funding responsibility between state and local sponsors. As a result of this investment, the Montgomery County Community College would be able to keep tuition stable for the next three years, maintain high-quality programs, and continue developing the skilled workforce that drives our region’s economy. 

Residents earning a fixed or low income may be eligible to enroll in a tax abatement program to minimize the impact of any tax increases on their household finances. Additionally, the Board of Commissioners passed the volunteer emergency services tax rebate program in 2024, allowing volunteer firefighters and EMS personnel to apply for up to 100% property tax relief, if either in active volunteer service or injured in the line of duty. More information about these programs is available at www.montgomerycountypa.gov/finance.    

The County’s Proposed 2026 Budget and Five-Year Capital Improvement Plan (2026-2030) is available online at www.montgomerycountypa.gov/finance and in-person at One Montgomery Plaza, 425 Swede Street, Commissioners Office, Suite 800, Norristown, PA 19401.   

Public feedback on the Proposed 2026 Budget and Capital Improvement Plan:  

Residents have several opportunities to provide feedback on the proposed budget.  

The Commissioners will hold two public hearings on the 2026 Proposed Budget and Capital Improvement Plan on: 

•  Thursday, December 4 at 10:00 a.m. 
• Thursday, December 4 at 5:30 p.m. 

The public will also have an opportunity to provide feedback through a new online tool via the Engage Montco platform. Residents can review the budget presentation document and make comments. This platform is available at www.montgomerycountypa.gov/finance.   

Individuals can also submit comments via email to [email protected], or mail comments to: Montgomery County Board of Commissioners, P.O. Box 311, Norristown, PA 19404. 

The Commissioners will consider the budget for adoption at their regularly scheduled board meeting on Thursday, December 18, 2025, at 10:00 a.m.