The Orange County Board of Commissioners unanimously approved the Fiscal Year 2025-26 (FY2025-26) budget during its June 17 business meeting, committing significant investments in education, behavioral health, housing and workforce support.

The adopted general fund budget totals $306.04 million, representing a 4% increase over the current year. To support this growth, the property tax rate was set at 63.83 cents per $100 of assessed value, which is 1.19 cents above the revenue-neutral rate. This adjustment is projected to generate $3.9 million in additional revenue. The tax impact of this rate increase on a home valued at $500,000 is $59.50 per year.

“This budget reflects the county’s commitment to strong public education, essential social services, and a competitive wage for our employees – all while maintaining a fiscally responsible reserve and minimizing the tax impact on our residents,” said Orange County Board of Commissioners Chair Jamezetta Bedford. “Our goal is to continually support both opportunity and equity across Orange County.”

Education: A Continued Priority

Orange County remains a leader in education funding:

• Per pupil funding for Orange County Schools rises to $5,877 (up $211).
• Chapel Hill-Carrboro City Schools funding increases to $8,560 (up $343), including revenue from the special district tax.
• Total current expense appropriations:
  • $64.75 million for Chapel Hill-Carrboro City Schools
  • $46.58 million for Orange County Schools
  • $20.84 million allocated to school-related debt service

Behavioral Health and Housing Investments

The FY2025-26 budget continues Orange County’s investment in social services and behavioral health:

• Retains two full-time behavioral health positions despite expiration of the Mental Health in Policing grant
• Extends the crisis counselor contract with the Town of Chapel Hill
• Increases the Longtime Homeowners Assistance program budget by $103,805, now totaling $377,805
• Reallocates $70,000 to the Emergency Housing Assistance program

Employee Compensation and Living Wage Commitment

Effective July 1, 2025:

• All permanent county employees will receive a 2% pay increase
• Orange County officially adopts $18.18/hour as the living wage for both permanent and temporary employees

Orange County Campus of Durham Tech Support

The budget also reflects an 8% increase in funding for the Orange County Campus of Durham Technical Community College, raising the operating budget by $72,740 to a total of $1,018,103 supporting non-instructional operations amid a 29% enrollment increase over the past four years.

Strategic Budget Goals
 
The FY2025-26 budget is rooted in six guiding principles:  

• Minimize the tax rate increase
• Create budget flexibility in anticipation of an economic downturn and potential federal reductions
• Maintain county investment in social safety net services
• Provide continuation funding to schools
• Invest in an employee compensation package
• Align budget investments with strategic plan goals

“This budget aims to responsibly balance investment in our schools and county safety net services with the financial realities facing residents,” said Orange County Manager Travis Myren. “In an environment of extreme uncertainty, the FY2025-26 budget builds resilience while maintaining progress on the county’s strategic priorities.”

Public Involvement

The county engaged residents and stakeholders throughout the budget process:

• Recommended budget presented by County Manager Travis Myren on May 6
• Public hearings held on May 13 and May 29
• Work sessions conducted on May 13, 15, 22, 27, 29, and June 5
• Capital Investment Plan presented April 1, with a dedicated work session on April 22

Orange County budget by the numbers

• $306,037,445 – General Fund budget
• $75,322,781 – Capital Investment Plan (FY25-26)
• $7,056,130 – Appropriated fund balance (with 16% unassigned reserve preserved) 

Visit orangecountync.gov/budget for details on the FY2025-26 budget and supporting documents