| For Immediate Release: June 16, 2026
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Orange County Board of Commissioners Approves
FY2026-27 Budget |
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The Orange County Board of Commissioners approved the Fiscal Year 2026-27 (FY2026-27) budget during its June 16 business meeting.
The adopted general fund budget totals $327,066,083, representing a 6.87% increase over the previous year’s budget. To support this growth, the property tax rate was set at 68.05 cents per $100 of assessed value, which is 4.22 cents above the previous fiscal year. This adjustment is projected to generate $14.24 million in additional revenue. The tax impact of this rate increase on a home valued at $500,000 is $211 per year. A home valued at $250,000 would see an annual increase of $105.50.
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The tax rate increase supports the repayment of debt issued for county and school capital projects, an increase in Pay-Go funding for school construction tied to the 2024 School Bond, the increased cost of operations for the school districts, a modest compensation package for county employees, and cost pressures from inflation and fuel costs.
The FY2026-27 budget was developed amid significant fiscal pressures facing the county. These include the impact of new and expanded property tax exemptions that reduce the overall tax base, as well as state and federal policy changes to programs like Medicaid and SNAP (Food and Nutrition Services) that shift costs to local governments. At the same time, the county continues to face rising costs for personnel, construction, and essential services, all of which contribute to the need for additional revenue to maintain current service levels and invest in community priorities.
"Developing this year's budget required difficult decisions in the face of rising costs, shifting state and federal responsibilities, and growing demands for essential services,” said Orange County Board of Commissioners Chair Jean 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."
Key Funding Highlights
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- Budget Reductions: Strategic reductions across 70% of county departments resulted in more than $3.8 million in General Fund savings, while maintaining the flexibility needed to respond to ongoing external challenges
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Tax Assessment Study Reserve ($250,000): Funds set aside for potential improvements recommended by an external consultant reviewing tax administration processes
- New Positions:
- Deputy Health Director (reorganization resulting in net savings of $166,325)
- List Driver to improve transportation service reliability
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Behavioral Health Director to start in the 4th quarter (funded through opioid settlement funds)
- Position Reductions: Elimination of 13.425 vacant full-time positions across 11 departments
- Charges for Services: Expanded revenue generation in Emergency Services, Health, Planning and Inspections, DEAPR, and the Department on Aging
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Education: A Continued Priority
Orange County remains a leader in education funding:
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- Per pupil funding for Orange County Schools rises to $6,290 (up $413).
- Chapel Hill-Carrboro City Schools funding increases to $9,097 (up $537), including revenue from the special district tax.
- Total current expense appropriations:
- $67.56 million for Chapel Hill-Carrboro City Schools
- $30.15 million in Chapel Hill-Carrboro City Schools District Tax
- $48.75 million for Orange County Schools
- $23.29 million allocated to school-related debt service
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Orange County Campus of Durham Tech Support
The budget also reflects a 3% ($30,543) increase 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 facility.
Employee Compensation and Living Wage Commitment
Effective July 1, 2026:
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- All permanent county employees will receive a 2% pay increase and the merit pay program will continue
- Employees will continue to receive a robust health and retirement benefits package at no additional cost to them
- Orange County officially adopts $20.02/hour as the living wage for both permanent and temporary employees, an increase of $1.84 from the previous fiscal year
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Strategic Budget Goals
The FY2026-27 budget was created with six central priorities in mind:
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- Minimizing the tax rate increase
- Prioritizing public safety and social safety net services
- Supporting school funding amid declining enrollment
- Maximizing operational efficiencies and cost recovery
- Modestly investing in employee compensation
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Aligning new investments with strategic plan goals
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"In a year marked by significant fiscal challenges and uncertainty, this budget reflects a disciplined approach to meeting the needs of our community,” said County Manager Travis Myren. “It preserves Orange County's strong financial foundation while making targeted investments in education, public health, behavioral health, employee compensation, and public safety. The FY2026-27 budget positions the county to remain resilient and responsive while continuing to deliver high-quality services to residents."
Public Involvement
The county engaged residents and stakeholders throughout the budget process:
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Capital Investment Plan presented April 7, with a dedicated
work session on April 16 - Recommended budget presented by County Manager
Travis Myren on May 5 - Public hearings held on May 12 and May 28
- Work sessions conducted on May 14, 21, 26, 28, and June 4
- Information sessions held on May 14, May 20 (virtual) and May 21
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Orange County budget by the numbers
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- $327,066,083 – General Fund budget
- $139,418,653 – Capital Investment Plan (FY26-27)
- $7,068,892 – Appropriated fund balance
(with 16% unassigned reserve preserved)
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