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March 15, 2026For Immediate Release: Friday, March 13, 2026
FY27 Recommend Budget Fully Funds MCPS Requested Budget
6.3 Cent Property Tax Increase and 0.01% Income Tax Increase Proposed to Fund MCPS Request and Maintain County Government Services
Montgomery County Executive Marc Elrich today released his recommended Fiscal Year 2027 (FY27) Operating Budget. The proposal continues investments in public education, affordable housing, public safety, health and human services, transportation, climate action, and economic opportunity while maintaining the County’s long-term fiscal stability amid growing economic uncertainty.
For more information on the FY27 Recommended Operating Budget, visit the Office of Management and Budget website. A video of the County Executive’s presentation is available on the County’s YouTube page.
The proposed budget reflects rising costs in housing, health care and other household necessities, continued pressure on County services, and reductions in certain federal funding streams that support local programs and nonprofit partners.
“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,” said County Executive Elrich. “In this environment, budgets require discipline and clear priorities. My FY27 Recommended Operating Budget protects the services residents rely on most while maintaining Montgomery County’s long-term fiscal stability. It continues our investments in strong public schools, support for families, affordable housing, public safety, climate action, and a government that works effectively and responsibly for all residents.”
The County Charter requires the County Executive to submit a recommended budget to the County Council by March 15 each year. The Council will review the proposal over the coming months before adopting a final budget in May. The new budget will take effect on July 1.
Key Highlights of the FY27 Recommended Budget
- Fully funds the Montgomery County Public Schools operating budget request with $3.8 billion in total operating funding.
- Includes the full request from the Board of Education for MCPS: $189.9 million increase over FY26.
- Exceeds the State’s Maintenance of Effort requirement for MCPS by more than $202.8 million.
- Continues progress toward restoring per-pupil funding toward its inflation-adjusted peak from FY10.
- Includes $152.7 million in investments for affordable housing, rental assistance, and neighborhood revitalization.
- Strengthens health and human services, including health care access, food assistance, crisis response, and homelessness prevention.
- Funds almost 1400 full-time fire and rescue staff and 1,850 full-time positions in the police department as well as technology expansion and system modernization.
- Continues Zero Fare Ride On, roadway resurfacing, and pedestrian safety initiatives: expansion of Flash Bus Rapid Transit and Ride On FLEX and civilian parking enforcement to reduce police workload.
- Expands climate and environmental investments, including $19.4 million for the Montgomery County Green Bank.
- Includes targeted investments in economic and workforce development, including the Institute for Health Computing, HJF Innovation Labs, and Bio Hub Maryland, a state-of-the-art training center to help individuals pursue careers in life sciences.
- Includes targeted reductions and efficiency measures instead of broad service cuts.
Click here for full news release from the Montgomery County Government
