Montgomery County commissioners got a look Aug. 6 at a roughly $537.3 million preliminary budget for fiscal year 2026-27, with several days of budget workshops set to begin Aug. 11.

The preliminary budget, filed July 27, totals $537,298,232, an increase of about $29.2 million from the county’s $508.1 million adopted FY 2025-26 budget. Budget Officer Amanda Carter said the proposal was built around the county’s current tax rate of $0.3770 per $100 valuation and includes about $6.28 million in unallocated funding that commissioners can direct toward priorities during workshops.

A closer look: Priorities include employee step increases, continued funding for the detention officer pay program, increased employee health insurance costs and startup expenses for the new 523rd District Court. The county is budgeting a $19,000 employer insurance contribution per employee, up from $18,450, as discussed.

By the numbers: County departments requested 103 new positions totaling about $12.8 million, although Carter stressed those requests are not necessarily included in the preliminary budget.

Magnolia ISD’s proposed tax rate and plans for a new elementary school will be discussed at the board of trustees’ Aug. 10 workshop and regular board meeting.

Items worth mentioning: The proposed tax rate is currently $0.9325 per $100 valuation of a home, consisting of a $0.6399 maintenance and operations tax rate and $0.2926 interest and sinking tax rate.

M&O is a portion of the tax rate that districts commonly use to fund day-to-day operations and general expenses, while I&S represents the debt service portion of a local school district's property tax, which is used to fund the principal and interest payments for voter-approved bonds.

The current proposed date for the public tax hearing is at 6:30 p.m. Aug. 24 at the Magnolia Event Center, located at 11659 FM 1488, Magnolia.

Also of note: MISD’s board will review a presentation for the proposed architect design plans for Elementary School No. 10 on Aug. 10. Meal prices for the upcoming school year and the student code of conduct are also on the agenda for board consideration.

On Aug. 6, Lone Star College System’s board of trustees unanimously approved a balanced $577.5 million budget for fiscal year 2026-27, which features 2% raises for full- and part-time employees.

The gist: According to Aug. 7 meeting documents, the FY 2026-27 budget featured employee pay raises of:

• 2% increase for all full-time employees hired on or before March 31
• 2% bump for part-time hourly, non-instructional employees, except for student assistants and college work-study participants
• 2% more for adjunct faculty, who are paid per contact hour

• $18.5 million in additional funding from local taxes for FY 2026-27
• $7 million more state revenue for FY 2026-27

Harris County is facing the task of balancing a $178 million shortfall going into fiscal year 2026-27—amid several requests that would require millions more in funding.

The big picture: According to the latest update from the county’s office of budget management, Harris County is facing a $178 million shortfall in the FY 2026-27 budget. Daniel Ramos, executive director of the Harris County Office of Management and Budget, said the county has faced a roughly $150 million shortfall annually in recent years.

The discussion: Harris County Precinct 1 Commissioner Rodney Ellis expressed heavy concern regarding how the county would ultimately address the shortfall, which has become a repetitive issue.

“When I was a banker, if you have a shortfall five years in a row, ... that's a structural deficit,” Ellis said.
”We’re about out of smoke and mirrors.”

Another thing: Commissioners also authorized raises for all eight elected constables, the district attorney, county attorney, district clerk, county clerk and tax assessor-collector which brought all positions to the same salary of $305,000 annually.

Need to catch up on Community Impact’s coverage from this week? Check out these trending stories across the northern portion of the Greater Houston area from Aug. 3-Aug. 7.

1. The future of downtown Tomball takes shape

2. Conroe ISD reviews preliminary budget, compensation plan at special meeting

3. PREVIEW: Klein ISD board of trustees to call November election

4. Studio 3113 Modern Needlework opens store for crafters in The Woodlands

5. Emergency service providers adapt to keep up with growth

6. Tim Hortons to open along Barker Cypress Road in August

7. Humble ISD's rebuilt Foster Elementary School set to open in August