Orange County Manager Travis Myren presented his recommended budget for Fiscal Year 2026-27 to the Board of County Commissioners during their May 5 business meeting. The proposed General Fund budget totals $325.1 million, which is a $19.1 million or 6.2% increase over the current fiscal year.
The proposed budget includes a countywide property tax rate increase of 3.75 cents per $100 of assessed value, raising the rate from 63.83 cents to 67.58 cents. This increase is intended to cover debt repayment for county and school capital projects, provide additional funding for school construction linked to the upcoming school bond, support higher operational costs in local schools, fund employee compensation adjustments, and address inflation and fuel cost pressures.
According to Myren’s presentation, this tax adjustment would generate about $12.65 million in new revenue beyond growth from new construction activity. For homeowners with properties valued at $500,000 and $250,000 respectively, annual taxes would rise by approximately $187.50 and $93.75.
To balance the budget while maintaining an unassigned reserve of 16%, Myren recommends appropriating $7.056 million from the fund balance as outlined by county fiscal policy.
Myren said: “This budget is designed to recalibrate county services, improve efficiency, and leverage alternative revenue sources to meet essential service demands.” He continued: “Amid ongoing uncertainty surrounding federal and state support, the FY 2026-27 budget positions the county to adapt and continue delivering services that address both the challenges and opportunities facing our community.”
The recommended spending plan prioritizes public safety services as well as social safety net programs; it also supports school funding despite declining enrollment trends in local districts while aiming for operational efficiencies across departments.
Education remains a central focus in this proposal with per-pupil funding increases planned for both Orange County Schools ($6,171 per student) and Chapel Hill-Carrboro City Schools ($8,978 per student including special district tax revenue). Additional investments include more than $3 million each toward Pay-Go funds for school bond projects and other capital needs; Durham Technical Community College’s Orange County Campus would receive a modest increase in operating funds as well as support for its expanded facility’s mid-year opening.
Academic readiness among high school students continues to be monitored closely: In Orange County school districts during the 2022-23 academic year, about half of juniors (725 out of 1,431) were considered ready for college on the science portion of the ACT exam; similar proportions were observed among seniors (692 out of 1,407), according to the North Carolina Department of Public Instruction. Reading scores showed that just over half—786 juniors (55%) out of those tested—were college-ready; among seniors tested in reading skills it was slightly higher at about 56%. Math readiness rates were lower with roughly 45%–46% deemed prepared on that section among both grade levels during testing last year.the North Carolina Department of Public Instruction reports these figures reflect ongoing educational priorities within Orange County schools.
The proposal features strategic reductions across most departments yielding more than $3.8 million in General Fund savings without compromising flexibility needed amid external challenges such as changes in state or federal policies impacting Medicaid or SNAP programs which can shift financial burdens locally.
Public engagement opportunities are scheduled throughout May—including hearings on May 12 (Hillsborough) and May 28 (Chapel Hill)—with final adoption set for June 16.
