Montgomery County Adopts a $546.8 Million Budget and a Higher Tax Rate, 3–2 in Favor | Special Session Recap, September 2026

Introduction to the Meeting

Montgomery County Commissioner's Court met in special session Tuesday morning at the Alan B. Sadler Commissioners Court Building on North Thompson in Conroe. All five members were there: County Judge Mark Keough and Commissioners Robert Walker (Pct. 1), Charlie Riley (Pct. 2), Ritch Wheeler (Pct. 3) and Matt Gray (Pct. 4).

The court had a singular focus this morning. Adopt a budget for the fiscal year ending September 30, 2027, and set the property tax rate that pays for it. From start to finish, it all took less than thirty minutes.

Judge Keough opened the floor for citizen comments and told the room they'd have three minutes each to make their voice heard. No citizen came forward, though.

The court then recessed into two public hearings, one on the budget and one on the tax rate, and asked twice more whether anyone wanted to speak on either. Nobody did.

The Quick Highlights

• --The court adopted a $546,808,952 budget covering all funds, on a 3–2 roll call vote. Commissioners Gray and Wheeler voted no.

• --The adopted tax rate is $0.3860 per $100 of value, up from $0.3770 last year and above the no-new-revenue rate of $0.3706.

• --On a median homestead, the county's impact statement shows the bill going from $1,018.16 to $1,043.55, a difference of $25.39.

• --Two different percentages were said out loud: 4.16% above no-new-revenue, which state law required the county to recite in its motion, and 2.39% year over year, which Commissioner Riley said he intends to use.

• --Not one member of the public spoke at citizen comments or at either public hearing. A single resident emailed all five members, and Commissioner Wheeler read her letter into the record.
  

The County Adopted a $546.8 Million Budget Over Two No Votes, Then Set the Rate That Pays for It in Three Separate Orders

Budget Officer Amanda Carter gave the total for the record: $546,808,952, all funds. Reading the resolution, Carter listed what the budget funds: a 5% base salary increase for non-law-enforcement employees, partial second-year pay parity for law enforcement beginning June 5, 2027, adjustments for various employees, funding for the new 523rd District Court, an increase in the employee medical plan funding, and increases for information technology, cybersecurity and software renewals.

Judge Keough called a roll call vote. Gray and Wheeler voted no; Riley, Walker and Keough voted yes. It passed 3–2.

The rate itself came in three separate orders, which is how the Tax Code requires it. Tax Assessor-Collector Tammy McRae handled all three:

• --Maintenance and operations rate: $0.3415 per $100 of valuation

• --Debt service rate: $0.0445 per $100 of valuation

• --Allocation of the M&O rate: $0.2998 to the General Fund and $0.0417 to Road and Bridge

Wheeler and Gray voted against the first two items. The third item, the allocation item, passed 4–1, with Gray the sole no.

What It Actually Does to Your Bill, According to the County's Own Paperwork

The numbers below come from the Taxpayer Impact Statement posted with the agenda. Texas counties have to publish one under Government Code § 551.043(c)(2), and Carter cited that section from the dais when Riley asked why the no-new-revenue rate was in the document at all.

Carter put the year-over-year difference at $25.39 on a median homestead, and the difference against the no-new-revenue rate at $41.64.

Two Different Percentages Got Said Out Loud, and Both of Them Are Correct

State law required the county to move the rate in specific language. McRae read it: "effectively a 4.16 percent increase in the tax rate." . That 4.16% measures the adopted rate against the no-new-revenue rate, which is the rate that would have brought in about the same money on the same properties as last year.

But Commissioner Riley wanted a different number. "I want people to understand what they paid last year and what they're going to pay this year," he said. "The difference. That's what I want to know." He was blunt about the other figure: "I don't care about the no-new-revenue rate."

McRae provided those details as well. The year-over-year difference between $0.3770 and $0.3860 is 2.39%. "That's the number I'm going to use," Riley said. "I'm not going with the no-new-revenue number."

Wheeler's "No" on the Budget Related to 5% Across-the-Board Raises for County Employees

Commissioner Wheeler's problem is the across-the-board 5%. "I believe in raises," he said. "I don't believe in across-the-board pay raises. I believe in merit-based pay raises, so that if somebody's doing a good job, they see that there's a differentiator between them and the person that's sitting next to them that's not doing as good a job."

He also put a price on the piece he objected to: "That two and a half percent represents almost $3 million, and we could have used that $3 million for a lot of other things. There were other CIP projects we needed. There were more staffing requests that we needed."

Keough framed a no vote as a bigger risk. "We can vote against it and start all over, and leave our law enforcement in the dust," he said. Wheeler pushed back directly: "Just because you vote against it doesn't mean you leave law enforcement in the dust."

Walker, who voted yes, spoke briefly before voting. "I want everybody to know this has probably been one of the hardest budgets I've ever been through," he said. "I've been here six years, and it's all about money and what we have and what we don't have."

Surprisingly, a $546 Million Budget Passed in a Commissioner's Court Without Any Public Comment

Montgomery County is estimated to have close to 800,000 residents, according to the Census Bureau. On Tuesday morning, the number of them who showed up to say anything about a $546.8 million budget and a higher tax rate was zero.
Not zero input, though. One resident emailed all five members, and Wheeler read the letter aloud. She argued that a 3% raise is the normal business practice, and asked the court to reconsider the additional percentage rate.

After Wheeler provided the resident's message, Keough directly answered her on the record. The county gave no raise last year, he said, so across two years the increase works out to about "two and a half percent per year," defending his position.

While the commissioners and county judge may have disagreed on the finalized budget, it's important to remember this is the required process of county government, as prescribed by Texas law.

After the court was finished with its agenda, Keough closed the meeting with a message: "For those who are watching, you have witnessed our republic at work. We were open. We were transparent. We went through complete discussion, letting everybody in the public see it.

And with that, the court adjourned. The tax rate and budget are set now. It applies to the tax bills that go out this fall, and the budget it funds takes effect October 1, 2026.

Sources

• Montgomery County Commissioners Court, September 8, 2026 special session agenda and Taxpayer Impact Statement

• Texas Government Code § 551.043

• Texas Tax Code Chapter 26

• U.S. Census Bureau QuickFacts, Montgomery County, Texas