Montgomery County Commissioners participate in a Dec. 18, 2025 board meeting. Pictured, from left, is Vice Chairwoman Jamila Winder, Chairman Neil Makhija, Commissioner Tom DiBello, and Chief Operating Officer Lee Soltysiak. (Rachel Ravina – MediaNews Group)
Commissioners vote on $632.7 million operating budget for coming year
Montgomery County Commissioners adopted a $632.7 million operating budget for the 2026 fiscal year, with a roughly 4-percent tax increase.
The action taken during Thursday’s board meeting was the first unanimous budget vote in nearly a decade.
“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 we do matter to our residents,” said Montgomery County Commissioners’ Chairman Neil Makhija, stressing the achievement reached at the local level amid the previous federal government shutdown and months-long stalemate in the Pennsylvania General Assembly in Harrisburg.
“So it’s really meaningful to show I think that’s a signal to all the residents that we’re here working together, and we’re not just here to score political points, but we’re actually trying to do our best for the county,” Makhija said.
Makhija championed the board’s efforts to find common ground on projects that support some of the county’s most vulnerable residents, highlighting ongoing social services initiatives about behavioral health and housing.
“This is something that was not easy, but we’ve done all this by working together and staying focused on the issues,” Makhija said following the Thursday morning vote, referring to planned supportive short-term housing facilities and the groundbreaking of the county’s emergency behavioral health crisis center.
Montgomery County Commissioners’ Chairwoman Jamila Winder agreed.
“I think this budget aligns with our values and the values that many hold dear in Montgomery County,” she said, underscoring how “the work we do today will build a foundation for future generations.”
“I’m really proud of the investments that we’re making across the board to ensure that Montgomery County continues to be a great place to live, work and raise a family,” she said.
While budget season took place this fall, proceedings began back in the spring as Chief Financial Officer Dean Dortone began meeting with department heads and other officials. Dortone noted an initial $55.9 million deficit when the budget process began back in April, which Commissioner Tom DiBello said would have translated to a roughly 18-percent tax increase.
“We knew that was nowhere near we could be at. I wouldn’t have supported it, and I know my fellow commissioners wouldn’t have supported something like that,” DiBello said.
Montgomery County’s government has roughly 30 departments with around 3,000 employees, according to Makhija, as department heads continued budget discussions throughout the year.
Dortone identified substantial operational savings to close the spending gap. Those factors included reducing benefit costs by $2 million, operating costs by $1.2 million, $1.3 million in “structural efficiencies,” a $450,000 reduction in legal fees, and the elimination of around 11 full-time vacant positions, which totaled around $700,000.
County officials still had to contend with a $25.5 million budget shortfall. Health and human services, judicial and county administration were the highest expenses calculated, with 36.5 percent, 18.3 percent and 17.8 percent, respectively.
Dortone said that raising the millage rate from 5.252 mills to 5.462 mills would generate an additional $12 million in revenue, bringing the revenue to $619.2 million. Another $13.5 million would be drawn from the county’s fund balance to close the deficit.
The suggested tax increase would show an increase of around $36 per year for an average single-family home in Montgomery County with a $556,600 market value and $171,200 in assessed value.
“I want to make sure people know we take our fiduciary responsibility really seriously. We know, and we’ve seen a delicate dance,” Winder said. “It’s balancing priorities, listening to a wide range of voices, and just making difficult choices.”
Constituents made their voices heard earlier this month during public budget hearings. Reactions to the proposed budget ranged, with some praising the county’s support for certain programs, while other residents expressed their concerns with yet another tax increase.
“I’m really concerned for the community that I live in. They’re very hardworking, working two jobs. They don’t have money for child care. Their rents go up, or taxes go up, and they’re pinched all the way around,” said Hatfield resident Sandra Levine.
“People in the county are working hard to earn a paycheck, and it’s been very difficult to make ends meet for many taxpayers, especially those who don’t qualify for any of the benefits they’re paying for,” said Lower Salford Township resident Michelle Engarto. “We’re asking for your leadership in the area of fiscal responsibility while still supporting programs that our community does need to thrive.”
“So rather than becoming more efficient and doing more with less, the county government appears to be on a mission of expansion and intrusion,” said a Harleysville resident. “So my question to each taxpayer watching this is are you really receiving 55 percent more from your county in hard-earned dollars since 2019?”
Ambler resident David Morgan came to Thursday’s meeting to share his apprehensions about the proposed tax increase and the potential impacts on area residents and businesses. Morgan added it was “quite alarming” to learn about the initial eight-figure deficit.
“So it seems like the county was going underwater very seriously and why weren’t we aware of this?” Morgan said.
“I could understand his concern, and many concerns of people as far as what tax increases have been for the last five years,” DiBello said Thursday, stressing “it’s extremely hard because none of us here wants to do anything … to request additional funds from our community.”
“My position as a county commissioner is to ensure we have a foundation in place so we don’t see what happens in other counties recently, where you see 18 percent, 19 percent, 20 percent tax increases,” DiBello said, referring to a 19 percent tax increase authorized in nearby Delaware County.
“I do certainly understand the implications for everyday taxpayers, and we take that seriously as well, but 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 said. “But I think we did a really good job arriving at the budget, and really thankful to the county team for the work that the collective did to get us to this point.”
Montgomery County commissioners also approved the $255.75 million 2026 capital fund and assigned $5.3 million for the employee retirement fund.
Programs offering eligible residents on a fixed or low income assistance include the county’s Real Estate Tax Deferral Program and the Pennsylvania Department of Revenue’s Property Tax/Rent Rebate Program. Additionally, the Active Volunteer Real Estate Tax Rebate Ordinance offers some relief to qualified first responders. More information on the county program can be found at montgomerycountypa.gov/finance.
