Durham County proposes $2.57M boost for schools without raising taxes

Durham County officials said they can add $2,570,000 to Durham Public Schools’ budget without increasing the property tax beyond the manager’s recommendation by combining targeted expenditure cuts and modest revenue adjustments. County budget director Keith explained the package to the Board during day five of a budget work session.

“These changes, if accepted by the board with approval of the budget ordinance on June 9, will mean that the tax rate will stay at the manager's recommended 3.5¢ increase and schools will get an additional 2,570,000 on top of the 10.3,” Keith said. Staff described the plan as a mix of reduced manager and commissioner contingencies, a $1,000,000 reduction in DPS ongoing capital (from $6,000,000 to $5,000,000), a $300,000 upward revision to expected interest income, and a $425,000 appropriation of fund balance to close the remaining gap.

County Manager Claudia Hager said staff believes the approach preserves DPS’ ability to address urgent capital needs because DPS also has access to PAYGO, ARPA and lottery funds. “So they have a larger funding stream available to them,” Hager said, adding the county will continue monitoring needs throughout the year.

Board members pressed staff on risks and alternatives. One commissioner asked whether reducing ongoing capital could impair planned HVAC or roofing work; staff replied those projects remain feasible through other funding streams and that the county can adjust if unanticipated needs arise. Staff noted that revenue assumptions are projections and will be validated over time.

The board is scheduled to consider the budget ordinance, which would commit these adjustments, at its June 9 meeting. Staff said it will supply the supporting documentation and continue to brief commissioners on implementation and any adjustments that prove necessary.