Orange County commissioners agree to intent-to-adopt 2025–26 budget; lower near-term tax increase by phasing school PAYGO

Orange County commissioners on Thursday approved a package of capital and operating budget amendments and passed a resolution of intent to adopt the county’s FY 2025–26 budget and year‑1 of the capital investment plan, setting the county ad valorem tax rate at $0.6383 per $100 of assessed value.

The board said it changed the school capital PAYGO phasing plan to reduce the immediate tax-rate impact. Commissioners approved a staff‑sponsored alternative (called “Framework 2”) that phases PAYGO for school capital at $500,000 in year 1, $6,000,000 in year 2 and $10,000,000 in year 3, decreasing the manager’s originally proposed tax increase by roughly 1.79 cents. Commissioners said that change brings the county rate much closer to the revenue‑neutral rate for the current revaluation cycle.

Why it matters: The board said the phased approach eases a sharp tax burden created this year by property revaluation and rising costs, particularly for residents on fixed incomes. Commissioners emphasized the change trims this year’s tax impact while leaving the bond referendum voters approved last year intact.

Most important votes - The PAYGO/school capital amendment passed 6–1 after extended debate about impacts on school construction plans and equity between the county’s two school systems. Commissioner discussion centered on balancing short‑term homeowner relief against long‑term school facility needs. Commissioner Earl framed the change as narrowing the gap between the manager’s recommended rate (65.59¢) and the revenue‑neutral rate (62.64¢), noting the amendment would set the board’s proposed rate near 63.8¢ and reduce a typical Orange County homeowner’s bill (example used by commissioners: a house revalued to $400,000) by roughly $71 compared with the manager’s recommendation.

Other approved changes and context - The board approved a broad set…