Orange County Approves 2026-27 Fiscal Budget – How Does It Affect The Community?

The Orange County Board of Commissioners approved the Fiscal Year 2026-27 budget on June 16. The budget totals $327,066,083 and includes a property tax rate of 68.05 cents per $100 of assessed value, which is a 4.22-cent property tax increase over the previous fiscal year. The county says the plan supports essential services and community programs in the coming year.

County officials outline several changes for FY 2026-27, including the phased elimination of funding for the Friends of Chapel Hill Public Library, increased funding for Durham Technical Community College operations, and a higher living wage for county employees.

Orange County Manager Travis Myren presented his recommended budget to the BOCC during its May 5 meeting. He said the proposal addresses community needs through a disciplined financial approach while maintaining the county’s strong financial foundation and making strategic investments in education, public health, employee compensation, and public safety.

“The FY 2026-27 budget positions the county to remain resilient and responsive while continuing to deliver high-quality services to residents,” said Myren. “This budget is designed to calibrate county services, improve efficiency, and leverage alternative revenue services to meet essential service demands.”

The fiscal plan highlights six priorities: minimizing the property tax rate increase; prioritizing public safety and social safety net services; supporting school funding; maximizing operational efficiencies and cost recovery; investing in employee compensation; and new investments aligned with strategic plan goals.

Commissioner Chair Jean Hamilton tells TLR that the spending plan requires the BOCC to balance rising costs for healthcare, employee retirement benefits, and other essential services.

“The state has been providing less money, and the federal government cut back on administrative costs specifically for Medicaid, which all leads to the county having higher responsibilities. We are still growing, which means an increased demand for public health, social services, emergency services, and our revenue growth has not kept up with cost growth,” said Hamilton.

What services and programs are impacted?

Property Tax:

The initial budget proposal presented in May recommends a 3.75-cent increase in the countywide property tax rate per $100 of assessed value, raising it from 63.83 cents to 67.58 cents. However, the budget approved in June reflects a larger increase. The property tax rate is set at 68.05 cents per $100 of assessed value, which is 4.22 cents higher than the previous fiscal year. The increase is expected to generate an additional $14.24 million in revenue.

According to the Orange County government, the tax increase supports repayment of debt issued for county and school capital projects, expanded Pay-Go funding for school construction tied to the 2024 School Bond, increased operating costs for local school districts, employee compensation, and inflationary and fuel-related expenses.

Hamilton says the fiscal plan requires difficult decisions due to rising costs, shifting state and federal responsibilities, and growing demand for county services. Many Orange County residents express concerns on social media that property taxes remain too high. According to Hamilton, the increase is necessary to maintain the services residents expect.

“You have to pay the people who provide essential services, and it costs. Spending was reduced by 70% in some departments, vacant positions were eliminated, but that wasn’t enough, so we raised taxes as well,” said Hamilton. “The Board of Commissioners worked hard to minimize the impact on taxpayers while continuing to invest in education, human services, and the well-being of our employees. This budget positions Orange County to better face future challenges and continue to serve residents.”

Education:

The approved spending plan also includes a 3% increase ($30,543) for the Orange County Campus of Durham Technical Community College to support non-instructional operations and $22,301 to fund the mid-year opening of the expanded Orange County campus. This expansion, covering 14,000 square feet, plans to create more room for the college’s programs in emergency medical services, allied health, and skilled trades.