It is budget season for local governments, with the new fiscal year starting in July — and this week, Orange County Manager Travis Myren and Chatham County Manager Bryan Thompson both unveiled their respective budget recommendations to county commissioners. But with state and federal funding cuts plus other financial pressures — all compounded by persistent inflation — county leaders this year are having to make some very difficult choices.
The Orange County budget proposal includes a proposed property tax rate increase of 3.75 cents, which is an annual increase of $150 for a home valued at $400,000. That proposed tax hike does not come lightly, according to Myren. He told commissioners he entered into the budget process with a list of six core priorities, and number one on that list was to minimize the tax rate increase. The $325 million budget he presented to the board includes numerous significant cuts and reductions — slashing 13 staff positions, holding staff pay raises below the inflation rate, and eliminating the county’s funding for the Chapel Hill Public Library. And while per-pupil spending for the two K-12 school districts would go up by 5%, Myren’s recommendation is still about $2 million below the combined requests from Orange County’s two school districts.
County Manager Travis Myren presents his 2026-27 budget proposal to the Board of Orange County Commissioners on Tuesday, May 6. This frame includes upcoming key dates for the budget’s timeline. (Photo via the Orange County government.)
But those cuts and slimdowns are all offset by other factors that are driving up costs in a big way. Speaking Tuesday, Myren said perhaps the biggest of these is a major increase from borrowing decisions the county already made in previous years. Debt service is going to be increasing by $7.8 million, which alone is greater than the $5.9 million the county is expected to make in additional tax revenue this year. And that, the county manager said, is before factoring in other cost drivers like the recent spike in gas prices, a 9% increase in health insurance for county staff, and last year’s federal budget bill which cut federal reimbursements for SNAP food benefits in half.
“That (SNAP cut) is an increased cost to the county of $680,000,” Jean Hamilton, the chair of the Orange County Board of Commissioners, told 97.9 The Hill the day after the Orange County budget presentation. “That’s major, and that has to be absorbed.
“Everything needs to be on the table,” she added. “Everything that’s discretionary… we need to know what we have to do in the county and what we’re choosing to do. And everything has to be on the table to look at to see where we can balance, to see if there’s more efficiencies to squeeze out. And I think we have to maintain raises for our employees.”
View Orange County’s proposed Fiscal Year 2026-27 budget materials here and the Board of County Commissioners’ meeting from May 5 here.
Down in Chatham County, this year’s budget discussion may be slightly easier — in part because the county does not have the same debt service burden. County Manager Bryan Thompson delivered a $222 million budget recommendation to county commissioners on Monday, keeping the property tax rate unchanged at 60 cents.
“The recommended budget maintains the property tax rate in uncertain financial times,” Thompson said Monday. “It focuses funding increases on education and public safety.”
But with all those other financial pressures hitting Chatham County no less than Orange, Thompson’s budget also includes some significant tradeoffs, as chair of the Chatham County commissioners Amanda Robertson told 97.9 The Hill on Tuesday.
“Gas prices are up, everything’s expensive,” Robertson said. “The sheriff’s office had a lot of new positions they wanted to include…(but) those were not in the budget.”
Thompson’s recommendation also includes about $700,000 less for education than the Chatham County Schools district initially requested. But Robertson indicated that may change before a final budget is approved.
“I think the superintendent is happy with that, but if they come to us and say ‘we need more,’ I think the support is with the Board of Commissioners to support them,” Robertson said.
County Manager Bryan Thompson addresses the Chatham County Board of Commissioners after finishing his FY26 budget presentation on Monday, May 4, 2026. (Photo via the Chatham County government.)
View Chatham County’s proposed Fiscal Year 2026-27 budget materials here and the Board of County Commissioners’ meeting from May 4 here.
Chatham County will be seeking feedback from residents on the budget at a pair of public hearings later this month, set for Monday, May 18 in Pittsboro and Tuesday, May 19 in Siler City.
Orange County officials are going even further in seeking public feedback. They are also holding two public hearings, on Tuesday, May 12 and Thursday, May 28 — but they are also holding a trio of public information sessions where residents can ask questions, learn more, and offer comments in a more informal setting. The first of those will be Thursday, May 14, at 6 p.m. in the Whitted Building in Hillsborough; there will also be one the following Thursday at the Southern Human Services Center, as well as a virtual session Wednesday, May 20.
To facilitate that discussion with the public, county commissioners asked Myren to come back with information on what a budget might look like if the property tax increase were limited to two cents, or if there were no tax increase at all. Myren promised to come back with some numbers — but added that such budgets would likely have to include the elimination of entire county programs.
With that reality in mind, County Commissioner Earl McKee wrapped up Tuesday’s discussion by saying local leaders have a difficult road ahead.
“For me, the major value is to keep Orange County so that everyone that wants to can live (here) in a fashion that allows them to be healthy and happy,” McKee said. “This is going to require a lot of hard decisions, (and) somebody’s bull is going to get gored in this process. But if we have the constitution to try to (ensure) that this county can remain where everybody can live here, it would be important.”
Based on the county managers’ respective timelines, the Chatham County Board of Commissioners will aim to adopt the Fiscal Year 2026-27 budget on Monday, June 15, while the Orange County Board of Commissioners will aim to adopt its new budget on Tuesday, June 16.
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Orange County Recommends Tax Increases for FY26 Budget; Chatham County Could Keep Rate Flat Chapelboro.com.
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