Orange County Budget Approved
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.
What services and programs are impacted?
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.
Employee Compensation and Living Wage:
Starting July 1, all employees in Orange County will benefit from a 2% salary increase. Additionally, they will maintain access to a health and retirement benefits package at no extra cost. The newly approved fiscal budget has set the living wage at $20.02 per hour, up from the previous year.
Friends of Chapel Hill Public Library:
A 501(c)(3) nonprofit is exploring strategies to address the funding cuts that will affect the library. The Orange County FY 2026-27 budget proposal suggests $621,323 in funding for the Chapel Hill Public Library, which accounts for 72% of the library’s operational expenses. With a total budget of $865,000, this reduction represents 14.5% of the library’s overall budget, which also includes personnel costs.
The Friends of Chapel Hill Public Library is a volunteer-driven organization that supports the library. Founded in 1950 as a small volunteer effort, the organization has grown to raise more than $175,000 annually for the library through book sales, memberships, donations, and events.
Karen Curtin, president of the nonprofit, tells TLR she believes Orange County should continue funding the Chapel Hill Public Library, even though it is municipally operated, because approximately 40% of Orange County taxpayers live in Chapel Hill. An additional 15,000 Orange County residents who live outside Chapel Hill actively use the library.
“The Chapel Hill library is by far the most used in Orange County, and the county’s library services budget should reflect some allocation of dollars to reflect that use by most of its residents,” said Curtin. “Chapel Hill residents are already taxed to provide what is considered a world-class library that benefits everyone in Orange County, including the 15,000 active users who live outside of Chapel Hill. The county should be contributing funding to support all-county access.”
Curtain added that the library provides essential social services to all Orange County residents, including critical free resources for learning, access to technology, and local culture.
“The library is also a safe space and gathering place for residents of all ages and backgrounds. Funding cuts, whether offset by reduced services, hours, or the implementation of library cards for non-Chapel Hill residents, will deprive everyone in the community and will hit hardest the most vulnerable among us.”