Rockingham County finance and administration staff told the Board of Commissioners April 3 that the county’s draft budget faces sharp pressures and that the current proposal would require using nearly $18 million of fund balance to balance the spending plan.

Why it matters: Commissioners said that magnitude of fund‑balance use is “jarring” and would require difficult decisions in budget hearings; staff and commissioners described a compressed calendar and early outreach to the county delegation to seek support and to explain impacts of state‑level proposals that could affect county revenues and costs.

Details from the meeting: County officials said several state‑level developments could affect county finances, including a proposed amendment to House Bill 2 that would create a new “Group 3” retirement contribution for certain employees and would require counties to pay roughly 10–11% (the consultant’s phrase) on those employees’ compensation for an unfunded liability — a change staff said could materially raise county retirement costs starting in 2026. The county’s register of deeds and finance staff reported strong transfer‑tax receipts year to date that have helped revenue collections but warned that real‑estate market volatility makes next‑year forecasting uncertain.

Commission activity: Commissioners confirmed the subcommittee schedule for late April through mid‑May, with delegation and subcommittee hearings expected to run roughly April 28 to May 13 to line up with the state representative/delegation calendar. Commissioners asked staff to prepare printed and electronic budget packets and to support delegation questions with written narratives where needed; staff said they will provide supplemental narratives for line‑item transfer requests the commissioners plan to present to the delegation.

Nonprofit funding: As part of the budget roll‑up staff reported that several long‑time non‑county nonprofit recipients failed to submit required applications and staff inserted $1 placeholder allocations for four organizations. Commissioners discussed whether to leave the placeholders or remove them and asked for further review before the delegation hearings.

Ending: Commissioners set an aggressive timeline of subcommittee meetings and requested additional context for departmental requests before the delegation meets. No binding budget decisions were made April 3; work sessions will continue.