Orange County Manager Travis Myren presented his recommended budget for Fiscal Year 2025-26 (FY2025-26) to the Board of County Commissioners during the May 6 business meeting. The proposed general fund budget totals $311.9 million, marking a $17.4 million or 6% increase over the current fiscal year.
The recommended budget includes a property tax rate of 65.59 cents per $100 of assessed valuation—2.95 cents above the revenue-neutral rate of 62.64 cents. This rate is designed to support critical investments, including funding for school facilities and maintaining essential services.
The proposed increase would generate an additional $9.7 million in revenue. The tax impact of this rate increase on a home valued at $500,000 is $147.50 per year.
Key components of the 2.95-cent increase include:
- 1.94 cents dedicated to school planning and design services for school bond projects.
- 1.01 cents allocated for ongoing county and school operational needs.
To balance the budget, Myren recommends a $7.06 million fund balance appropriation, preserving an unassigned reserve of 16%, in line with the county’s fiscal policy.
Strategic Budget Goals
Myren’s FY2025-26 proposal is rooted in six guiding principles:
- Minimize the tax rate increase
- Create budget flexibility in anticipation of an economic downturn and potential federal reductions
- Maintain county investment in social safety net services
- Provide continuation funding to schools
- Invest in an employee compensation package
- Align budget investments with strategic plan goals
“This budget aims to responsibly balance investment in our schools and county safety net services with the financial realities facing residents,” said County Manager Myren. “In an environment of extreme uncertainty, the FY2025-26 budget builds resilience while maintaining progress on the county’s strategic priorities.”
Education Investment Highlights
The FY2025-26 recommended budget reinforces Orange County’s commitment to education:
- Per-pupil allocation increases to:
- $5,877 for Orange County Schools (up $211)
- $8,491 for Chapel Hill-Carrboro City Schools (up $274), including revenue from the special district tax
- $6.4 million included for planning, design, and project management costs for school construction related to bond projects
- Orange County Campus of Durham Technical Community College:
- Budget increase of 3% to support non-instructional operating costs
- 29% increase in usage by Orange County residents from FY2020-21 to FY2023-24
Key Funding Highlights
- Behavioral Health: Maintain two full-time positions – mental health coordinator and social worker – after elimination of the Mental Health in Policing grant.
- Sheriff’s Office Fleet Maintenance: Internalization of services by adding two mechanics and parts budget ($306,000), offset by eliminating external contracts and future cost avoidance.
- In-Home Aide Services: $100,000 increase to provide 60 additional service hours per week to support elderly and disabled adults; $40,000 increase to maintain the Aging Department’s in-home respite services.
- Housing Assistance: $24,000 increase to the Longtime Homeowners Assistance program and a reallocation of $70,000 for the Emergency Housing Assistance program.
- Employee Compensation: 2% salary increase for all county employees.
Residents are invited to participate in two public hearings:
- May 13, 7 p.m., Southern Human Services Center, 2501 Homestead Road, Chapel Hill
- May 29, 7 p.m., Whitted Human Services Building, 300 W. Tryon Street, Hillsborough
The Board of Commissioners will conduct four work sessions to evaluate funding requests from departments, schools, and outside agencies. The final adoption of the FY2025-26 budget is scheduled for June 17.
More Information
Visit orangecountync.gov/budget for details on the FY2025-26 recommended budget and supporting documents.