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Officials warn SNAP and teacher pay changes could add about 2 cents to county tax rate
Summary
Staff told the Board that recent federal and state policy changes—SNAP cost-sharing shifts under H.R. 1 and proposed teacher pay increases combined with enrollment declines—could each add roughly $1.2 million in local costs, together equating to about two cents on the property tax rate if passed through to counties.
County staff briefed the Board on two external policy risks that could affect the FY 2027 budget and future tax decisions.
First, the manager said federal changes enacted in 2025 (referred to in the presentation as H.R. 1) alter SNAP administrative and benefit cost-sharing. Under the new framework, the federal share of administrative costs may shrink, potentially increasing the local share. Staff estimated Transylvania County’s local exposure could be about $125,000–$150,000 for the partial FY 2027 year and $175,000–$200,000 annually thereafter for administrative cost changes; combined administrative and benefit cost-sharing changes could reach roughly $1.2 million annually, or about one cent on the property tax rate at current valuations, if the state passes through the costs.
Second, state-level teacher pay initiatives and changes to Average Daily Membership (ADM) were identified as another potential pressure. School projections indicate a loss of roughly 10 state-funded positions over the next two years; combined with proposed state teacher salary increases, staff estimated local impacts of around $1.2 million annually (about one cent on the tax rate). The manager said the recommended FY 2027 budget does not include these additional recurring costs and proposed using fund balance to absorb any mid-year impacts if state decisions are finalized after adoption.
Commissioners discussed the magnitude and uncertainty of these risks and asked staff for more specifics to use in upcoming meetings with state legislators. The manager noted that many of the pressures are recurring and would require ongoing revenue if costs are passed to counties.
