Franklin County proposes 1¢ real‑estate tax increase, 2% meals tax to balance $185M budget; schools seek $3.7M

Franklin County officials presented a proposed $185 million fiscal‑year 2026 budget at a public meeting, asking the Board of Supervisors to consider a 1‑cent increase in the real‑estate tax rate (from 43 to 44) and a 2% increase in the meals tax to cover rising operating and capital costs and to partially fund school priorities.

The proposal, delivered by Chris Whitlow, county staff presenter, emphasizes stabilizing recurring capital needs — ambulances, fire apparatus, vehicle replacement and school buses — while maintaining core services and phasing in school resource officers (SROs). "We present to you a balanced budget of a real estate property tax rate increase from 43 to 44," Whitlow said, framing the increase as one way to address structural capital shortfalls and inflationary pressures.

The county’s budget summary shows a proposed overall increase of about 3.5% year‑over‑year and a total budget in the neighborhood of $185,000,000. To reach that balance the proposal includes the 1¢ real‑estate rate increase and what Whitlow described as a modest meals‑tax change; Whitlow said the tax changes are intended to produce modest, recurring revenue while limiting the immediate burden on taxpayers.

Why this matters: county staff and school officials said state revenue is uncertain until the state budget is finalized later in the spring, leaving local officials to plan conservatively. County staff also told the board they face rising costs for health insurance, fuel, utilities and court‑ordered social services (Child Services Act), and that some grants that previously covered staff or services are ending and will require local funding.

School division priorities and county response

Dr. Sears, the school division’s presenter, outlined a schools budget built around conservative enrollment projections and a slate of priorities that include the third year of a multi‑phase compensation study, market adjustments for nurses and other staff, bus replacement and other capital requests. "We have a trend line that is still projected to decline in regard to our student enrollment," Dr. Sears said, and the division is budgeting based on those conservative projections.

Specific school figures presented in the meeting include: a projected enrollment decline of about 84–86 students for the coming year and an enrollment figure as of Feb. 28 of 5,838. The division said a projected increase in state funding for FY 2026 — based on the state crossover budget — would total $1,475,177 for the local division, but that parts of the state package (a one‑time bonus and other items) remain uncertain and could affect local needs.

Dr. Sears identified several school budget items: year‑3 of the compensation study (a little over $3.5 million), a nurses market adjustment of about $368,000, bus replacements (the division budgeted $340,000 and said that would likely buy two buses next year at roughly $172,000 per bus including radio equipment), and an ask for additional capital funds to extend a car‑rider line at Suntag to address a traffic hazard.

County allocations aimed at schools in the proposed budget include a $500,000 increase in operational support, roughly $150,000 added toward school bus replacement, and about $100,000 (described as "approximately a hundred thousand plus") toward phasing in SROs as grants expire. When asked whether the county’s proposed revenue package would cover the schools’ full requests (about $3.7 million), Whitlow said the county included a partial amount and that full implementation depends on state funding and further discussions: "I could not answer that question ... that may take some more discussions with the schools," he said.

Public safety, capital and insurance pressures

County staff said the proposed budget increases recurring capital funding by $750,000 to chip away at long‑term shortfalls for ambulances, fire trucks and other heavy capital needs, and continues funding for an eventual e‑911 dispatch center and county radio system repairs. The county also proposed maintaining robust support for volunteer fire and rescue companies.

Both the county and the school division cited health insurance cost increases. The schools reported an estimated health‑insurance increase of about 6.93% for the plan they described; county staff said the county’s forecasted increase was roughly 15% and that the county plans to share part of the premium increase with employees and that a health insurance consultant will present details at an upcoming work session.

Process and next steps

Whitlow said the proposed budget and supporting documents would be posted on the county website and made available at county facilities. The board scheduled additional budget work sessions and anticipates public hearings on the tentative budget and tax rates in April, with a tentative adoption date also in April subject to final state budget actions and other follow‑up. Whitlow told the board, "we stand ready to answer any questions that you may have," and staff distributed budget books at the meeting.

On a procedural matter at the start of the meeting, the board voted to accept the meeting agenda; a motion was made, seconded and approved by voice vote.

Ending note

County staff emphasized the proposed FY 2026 budget is intended as a measured plan to maintain services, address critical capital shortfalls incrementally and give the school division partial operational support while awaiting final state revenues and further board deliberation. Additional line‑item detail and department budgets are available in the budget book and will be discussed at upcoming meetings.