Orange County budget hearing spotlights school funding and Chapel Hill library cuts as commissioners weigh 3.75-cent gap

County Manager Travis Myren on Tuesday presented a recommended FY2026-27 budget of $325.1 million to the Orange County Board of Commissioners, saying the plan relies on approximately $275.8 million in tax revenue and leaves a residual gap of about $12.65 million — a shortfall equivalent to a 3.75-cent increase in the tax rate from 63.83 cents to 67.58 cents per $100 in assessed value.

"When all budget expenses and revenues are reconciled, a residual gap of approximately $12.65 million remains," Myren told the Board, and noted that the gap translates to a roughly $150 annual tax increase on a $400,000 home under the 3.75-cent scenario.

The manager outlined spending priorities and constraints that shape that gap: debt service projected to rise by $7.8 million because of prior borrowings; a recommended 2.5% increase in current expense funding that would bring per-pupil county funding to about $6,171; and a proposed employee compensation package that includes a 2% wage increase (approximately $1.9 million), a 9% health-insurance cost increase (about $1.3 million), and a 5% increase in the local retirement system (roughly $570,000). He also recommended raising the county living wage to $20.02 per hour at an estimated cost of $500,000.

Public commenters at the hearing pressed the Board to prioritize schools and libraries. Dozens of speakers — including classroom teachers, school-district leaders, parents, and library volunteers — urged the Board to fully fund the continuation budgets submitted by Orange County Schools (OCS) and Chapel Hill-Carrboro City Schools (CHCCS). County materials and public commenters indicated the manager’s recommendation falls roughly $712,000 short of OCS’s continuation request and about $1.5 million short of CHCCS’s continuation request.

"Now is not the time to pull back funds from our schools," said Spring Dawson-McLure, a parent, addressing the board and describing teachers’ financial strain. Multiple educators described working second jobs and warned that continued underfunding would worsen staff turnover and impair programs.

Library supporters also urged preserving county support for the Chapel Hill Public Library. Several speakers said the proposed phase-out of county contributions to the Chapel Hill location would reduce access for county residents who rely on its services. Karen Curtin, who examined library numbers during public comment, said the Chapel Hill Public Library has historically received roughly 17% of county library funding and expressed concern that proposed cuts would force some residents to pay for library cards in the future.

In the work session that followed, staff outlined a series of options the Board could pursue to close the gap without adopting the full 3.75-cent increase. Those options included reducing discretionary current-expense allocations, scaling the county living wage back to $18.18 (saving roughly $500,000), converting some Pay-Go school soft-costs to debt (with tradeoffs in total borrowing capacity), reallocating some eligible contracts to opioid settlement funds, and reexamining occupancy-tax and Visitors Bureau allocations.

Commissioners signaled they intend to consider amendments. Commissioner Jamezetta Bedford and Vice-Chair Amy Fowler said they would post an amendment to restore Chapel Hill library funding; Commissioner Marilyn Carter said she planned to post an amendment to reinstate step increases for county employees. The Board agreed that commissioner budget amendments would be posted as submitted rather than waiting until a single date.

Procedurally, the Board opened the public hearing by unanimous vote, closed the hearing by unanimous vote after public comment, and recessed before reconvening in work-session format. No final tax-rate vote was taken on May 12; staff said additional work sessions are scheduled for later meetings where commissioners will consider posted amendments and vote on a final budget.

The Board adjourned at 10:18 p.m.