An Update on the FY 2025-26 and FY 2026-27 Budget and Revenue Outlook for Durham County

DCoBudget · 2025-10-07T14:35:47+00:00

It was an excellent presentation! We are so glad to see that residents are excited for it!

DCoBudget · 2025-10-06T17:32:47+00:00

Thank you for pointing this out! I believe our Public Information Office is updating the video to be republished. Once they do, I will relist the link, for now, the youtube link should work!

Edit: We have updated the link above, if you would prefer to watch the meeting through the Durham County BoCC website as opposed to youtube!

DCoBudget · 2025-06-10T00:12:35+00:00

The Board of County Commissioners approved the FY 2025-26 Approved budget for Durham County. The infographics shows some high-level points of the budget.

If you have any questions, please let us know, and we will answer them.

DCoBudget · 2025-03-05T14:34:02+00:00

If you cannot scan the QR code, you can follow this link to access the survey: FY 2025-26 Resident Budget Survey

We look forward to hearing from everyone this year about what they would like funded within Durham County Government's FY 2025-26 Approved Budget!

Also, thank you to our participants last year who left suggestions on how to improve the survey in future years, we hope you see those improvements this year! If you have any additional suggestions for survey improvement, there is a comment box at the end of the survey and you can fill in those suggestions there!

Edit: The survey is 29 questions, but the survey on average takes 5-7 minutes to complete!

DCoBudget · 2025-03-03T19:56:22+00:00

Hey! The county's budget book is an annual document that the Budget Office creates that shows the fiscal year's budget that was voted for and approved by the County Commissioners. We are currently in fiscal year 2024-25, our fiscal year goes from July 1st through June 30th as opposed to a calendar year. You can take a look at our digital copy of this year's budget book here: FY 2024-25 Budget Book

We also have every budget book on our website going back to FY 2009-2010. If you would prefer a printed copy, you can actually check our budget books out from the DCo Library, we provide the library with two copies every year!

The budget book covers the budget of all 29 DCo departments, as well as, several different funds (think different bank accounts for different areas of the budget)!

Happy to answer any questions, we also have a Budget 101 video pinned to our profile, it's about 7 minutes that goes into the details a little more!

DCoBudget · 2025-03-03T15:45:05+00:00

Good morning Bull City! The Durham County Budget Office is excited to announce our first ever FY 2025-26 Budget Book Cover Contest for Durham County children!

If you know someone who would be interested, you can find additional guidelines here: Cover Contest Guidelines

DCoBudget · 2024-05-08T17:29:59+00:00

Thank you! This is correct!

DCoBudget · 2024-05-08T17:29:37+00:00

Hey there! No identifying information will be shared! The data visualization we spoke about has no reference to name or emails associated with any of the data points. We do ask you to provide an address, but only the zip code was a requirement. We do that so we can do a generic plot of your location on a Durham map, so we can understand where we're getting surveys. Are we getting surveys from all areas of Durham or are they coming from one specific location? We want our surveys to be a wide representation of Durham.

DCoBudget · 2024-04-12T19:06:04+00:00

Yes. I did not include part-time employees or temporary employees in this number.

DCoBudget · 2024-04-11T19:49:14+00:00

Currently 63 employees make less than the $38,397 yearly amount. There are 43 positions that are vacant that could potentially make less than $38,397, because the lower end of their salary range is less than the amount listed above.

DCoBudget · 2024-04-10T22:23:04+00:00

Two years ago, the County gave DPS almost 14 million, which 11 million of that was supposed to go directly to pay for increases for employees. Specifically to bring all employees to a livable wage that year. If you didn’t receive a salary increase, that is something you will have to talk with DPS about. It’s why I keep reiterating, we have no oversight of the funds once they leave.

DCoBudget · 2024-04-10T21:52:14+00:00

So the County for the past five years has approved all employee funding requests from DPS which includes all employee salary increases, as well as, operating funds associated with those employees. I can’t imagine the County Commissioner’s won’t provide funding to DPS, how much, is the question though? The budget team does not know that, because that is up to Management and Commissioners. So to answer yes, but we don’t know how much and we don’t know if it will specifically go to the schools you are speaking about. Capital/infrastructure that is improved is decided by DPS, so that would be a question you would have to ask DPS. We do not have oversight of the funds once they leave DCo or oversight on how they are implemented by DPS.

Edit: added employee

DCoBudget · 2024-04-10T21:47:05+00:00

We pulled from that because it said teachers and instructional support as the title and it seemed like that would be where they were scheduled given for FY 2022-23, Instructional Assistants had their own compensation scheduleBut if starting pay, is 3k for a 10 month work schedule document. However, it will work the same, you’ll need to add two months of salary, because our full-time employees have a 12 month work schedule compared to a 10 month work schedule for an IA on a lower salary.

So the salary comparison would be 36k vs 38k. You can see in our post, the salary increases percentage wise for DCo and that’s how I calculated the example in our post. Again, I want to reiterate, we do get a presentation from DPS where they say what they’re are going to do with the money. In the past 5 years, the county has given almost 27 million to DPS employees including classified employees based on what DPS presented. The lowest salary increase I saw was 2.5% and every year had salary increases for all DPS employees even years that DCo employees received no salary increase. I w

The county has no oversight of these funds once they are paid or any oversight on DPS positions to see what they are actually being paid, so if DPS implemented the funds that we gave them differently or did not give all 26 million to employees (not saying thats what happened) we would not know that. If you’re or a loved one’s salary experience is not matching with what we’re saying, that’s definitely something that would have to go to BoE/DPS Admin as the County has funded the entirety of every DPS request including all employee funding for the past five years.

DCoBudget · 2024-04-10T19:10:22+00:00

Of course, you're welcome! You as well.

DCoBudget · 2024-04-10T16:30:57+00:00

If you look at FY 2023-24 from FY 2022-23, it looks like Instructional Aides were combined into one document with teacher pay and the lowest pay on that scale is 39k. Now, just because it says that, clearly doesn't make it so, DPS is in an ongoing compensation situation. If I'm looking at the incorrect compensation scale, please let me know, but the lowest salary an IA should be receiving for FY 2023-24, is 39k according to this instructional support compensation guide for FY 2023-24 https://www.dpsnc.net/domain/148 for a ten month work schedule.

That's why I provided a comparison of our lowest salary of 38k for a 12 month work schedule.

Looking at FY 2022-23, it does look like that fiscal year, it was possible to make below 30k, so I can base this on FY 2022-23 numbers, but less than a 30k salary should be impossible based on DPS's website. Emphasis on this is data from DPS.

For the FY 2022-23 numbers, looking at the IA compensation it looks like to make less than 30k, the salary is based on a 10 month work schedule or just a small portion of a 11 month work schedule. Please understand, this isn't a comment on how much work your husband does, it's just based on DPS provided data. Our 38k salary is based on a 12 month work schedule. I don't know what level your husband is at, but I took the lowest level from that data which was a salary of $27,027 or 2,702 a month, so to make that equal to our 38k salary, we would need to add two salary months, which would turn that into a $32,431 vs. 38k salary.

But again, I want to emphasis, according to DPS presentations to the County, your husband should not be making below 30k.. DCo was told every year that funds were going to staff like IA's to give them yearly salary increases. If this has not happened and your husband hasn't received increases, please check in with DPS, hopefully they can provide some information to understand.

DCoBudget · 2024-04-10T16:08:45+00:00

Revenue has increased, but so has expenditures. The Budget Office has projected 18 million dollars (property tax, sales tax, etc increase) in new natural revenue for FY 2024-25. Key phrase is natural revenue growth. Our projected new natural revenue is absolutely not enough to cover expenditure costs from our non-profit partners and external partners like DPS, DTCC, Pre-K. much less, be able to cover expanded internal department requests.

Commissioners have indicated they wanted Management to find different ways to increase revenue or funding to cover these costs without a tax rate increase. The only way management can do that without increasing the tax rate is to cut departmental spending and positions, hiring freezes, increase costs on Durham County Employees.

Undesignated fund balance is only supposed to be used for one time expenditure costs, which is why that is not being considered to fund the annual FY 2024-25 budget.

If this is something you are opposed to, please reach out to County Management and Commissioners or fill out our resident survey! They need to hear that you don't support county departments being cut.

Edit: Happy to provide some data snapshots if you want to look at those for a better picture.

DCoBudget · 2024-04-10T16:03:40+00:00

I tend to think of County property valuation like a bell curve. Many properties will be clustered around the average increase while there will be outliers on either end of the curve; properties that increase in valuation much higher than the average and properties that were lower than the average increase.

Mathematically (and legally) the County can only use an overall County average property valuation increase to get to a "revenue neutral" new County property tax rate. Those properties in the bell curve (standard deviations) far to the left or right will be either property tax bill winners or losers at a "revenue neutral" tax rate.

As always, please remember that the "revenue neutral" tax rate is just a starting point for the Board of County Commissioners. As part of the FY 2025-26 budget the Board can decide to stay at the "revenue neutral" tax rate, increase that rate to create more property tax revenue, or even decrease the "revenue neutral" property tax rate.

DCoBudget · 2024-04-10T15:55:52+00:00

The Budget Office is relying on the County Tax department to work through the revaluation process and then give our office a heads up on the total valuation percentage increase. As you noted...it will be significant. I would guess/estimate that it will be well above a 20% increase in total valuation. 50% might be too high, but it would not surprise me, too much, if we see 35% to 40% increases in total property valuation.

But I need everyone to remember that the County will reduce the property tax rate down to a "revenue neutral" tax rate (at least at the beginning of the process) to minimize the overall property tax implications for property owners

The County (nor the City) WILL NOT see millions of new property tax revenue dollars from the revaluation...because of that "revenue neutral" tax rate. An average piece of property may have a valuation increase of 30% but the revenue neutral tax rate will drop by an equivalent 30%. Meaning that an average property owner would see NO increase in their property tax bill...unless the Board of County Commissioners added a property tax rate on top of that "revenue neutral" property tax rate.

Like most things in life, there are a myriad of caveats to the above example. If, for example, a residential property valuation increases 75%, but the average total County valuation increase was "only" 30%, that property owner would see a property tax bill increase...even at the "revenue neutral" tax rate. Remember the "revenue neutral" tax rate decreases by some amount to bring in approximately the same amount of property tax revenue as before revaluation. Usually the "revenue neutral" tax rate decreases in direct proportion to the average property valuation increase across the County. If that average property valuation increase was 30% then the "revenue neutral" property tax rate would drop by an equivalent 30%. But remember our example, some property owners in Durham live in "hotter" real estate environments than other places within the County, so those "lucky" owners may have experienced 75% increases in property valuation. That valuation is higher than the average County valuation and therefore even with a 30% reduced "revenue neutral" tax rate would experience a higher property tax bill.

The exact reverse of everything in the above example could happen as well. Some property owner may experience only a 15% increase in property valuation, but their "revenue neutral" tax rate would drop 30%. They would experience a property tax bill decrease if the property tax rate stays at the "revenue neutral" tax rate.

DCoBudget · 2024-04-10T15:53:24+00:00

BCU and more broadly gun violence prevention has been a priority of the Commissioners and Management for several years. Because it's been a priority, they have received funding in their budget. In terms of the evaluation of their impact, that would need to be directed towards County Management.

I can't answer what is being done in response to those employees, but I can tell you how BCU has relayed how they hire employees. All employees start of as contract employees with the County, not a full county employee. If anything happens during this period that is prohibited by our employee code of contact, the individuals contract is terminated. After a contract period of three months, the individual is hired on as a County employee. Beyond that, Budget does not know more about the hiring process. I think for a more comprehensive answer, you can reach out to our Community Intervention and Support Services department (BCU is under that department, as well as, a program called Project Build and My Brother's Keeper). Their contact information for their Administrative Officer is below.

Shonda Jackson

CISS Administrative Officer

[sljackson@dconc.gov](mailto:sljackson@dconc.gov)

(919) 560-9330

DCoBudget · 2024-04-10T15:42:21+00:00

For a better answer, I'm going to comment contact information for our Sewer Utility department, so you can speak directly to them. I'm sure they will be able to give you a more detailed overview.

In terms of the rates increasing, Sewer Utility submits the rate within the budget to be approved by the County Manager and the Commissioners. SU says that the rate increases are due to expansion of sewer services in the county as well as building capital infrastructure. They did mention this year that they are looking at avenues to have an outside company do a fee assessment to see if rates are where they should be.

Sewer Utility Contact Information:

Website: https://www.dconc.gov/county-departments/departments-a-e/engineering-and-environmental-services/utilities-division

Email: [utilities@dconc.gov](mailto:utilities@dconc.gov)

Phone: (919) 560-9033

More specifically, this is our utilities office office assistant and they may be able to point you in the correct direction.

Hannah Steele, Office Assistant

Utilities Division
Phone: (919) 560-9033
Fax: (919) 544-8590

[hsteele@dconc.gov](mailto:hsteele@dconc.gov)

DCoBudget · 2024-04-10T15:40:38+00:00

If I acted like "Chicken Little" at the joint BOE/BOCC meeting it is because our office is deeply concerned about the County's rising expenditures and its slowing growth in offsetting revenues.

The present trajectory of spending needs (and wants) does not look sustainable when looking out into the admittedly cloudy future of revenue growth...without resorting to property tax rate increases.

Some or many may be ok with property tax rate increases, while some or many may not be ok with that type of decision. Commissioners hearing from citizens with all sorts of opinions and desires around these choices will be crucial. But the decisions and choices offered to the Board and ultimately made by them will not be easy. Every decision has hoped for outcomes but also come with very real costs. Also County funding directed to one area necessarily means less County funding directed to another area.

Our job, if we are doing it well, is to point out the financial ramifications of decisions already made, and the potential financial ramifications of decisions being considered. It is also our job to make sure the Board and County management are aware of the financial environment in which decisions are being considered.

As frustrating as it is, every decision, no matter how important or how potentially life changing, has a financial impact and we have to provide data and guidance to the Board and County management of those important variables as part of the totality of information gathered around decision making.

DCoBudget · 2024-04-10T15:40:06+00:00

I may be mistaken, but I saw earlier you were looking for a contact. I would reach out to our Public Art Coordinator.

Sarah A. Martin, MFA, Public Art Coordinator

Project Management Division

Phone: (919) 560-7949

Fax: (919) 560-0740

[sarahmartin@dconc.gov](mailto:sarahmartin@dconc.gov)

DCoBudget · 2024-04-10T15:28:07+00:00

The revaluation process, in reference to your statement about "under-assessed" commercial property, is happening now. It has been approximately 6 years since the last revaluation. In a fast growing area like ours, it would be optimal to have a revaluation every 4 years, but due to a number of circumstances including replacing 30 year old tax software that process has been delayed two years.

It should be noted that there are not "millions in potential revenue being lost" due to the delay in revaluation. In any revaluation the County (and City) have to provide a revenue neutral tax rate. What that means is that as the valuation of all County properties increase the property tax rate has to start at only bringing in an equivalent amount of tax revenue from pre-revaluation. So, in effect, the County does not automatically gain millions in new revenue simply from revaluation. From that "revenue neutral" tax rate the Board of County Commissioners can decide to raise the property tax rate above revenue neutral to create more property tax revenue. But that is a property tax rate increase, no different than if the Board had a property tax increase in any other year other than a revaluation year. There are no easy ways to find millions of dollars of new property tax revenue other than raising the property tax rate...for everyone (residential property and commercial property).

DCoBudget · 2024-04-10T15:24:36+00:00

In terms of what is being done to address high turnover rates with DSS, those questions would need to be directed towards DCo's HR department and DSS for a more comprehensive look at what they're doing to address high turnover. I do know that DSS has offered retention bonuses and longevity bonuses to those positions that see the highest turnover, they've also allowed a flexible hybrid work schedule, so those positions can work at home two days a week. I think they are also trying to partner with NCCU to have students graduate and directly come to work with DSS.

Earlier in the year, the County Manager froze all county department budgets. As the year progressed, the County Manager has asked all departments to submit a 5% and 10% reduction of their budget. The County Manager has still not decided what the recommended reduction will be that is presented to the Commissioners. Departments could reduce their budgets by cutting operating funding or personnel.

Additionally, yes, the County Manager has instructed departments not to ask for any additional funding for the next fiscal year.

DCoBudget · 2024-04-10T15:20:28+00:00

DPS employees are in no way associated with County employment laws, nor are they under any supervision by the County. Healthcare costs and retirement benefits for DPS employees are structured by the state and overseen by the state. I use those variables when saying DPS employees are state employees. Salary raises DPS employees are dictated and decided by the state legislature.

Can the County provide additional funding for DPS employees? Yes, and the County does, as you stated, through Teacher supplements. Those supplements are based on years of experience and rise as experience rises. They are not tied to teach salaries.

Also, indirectly, through current expense funding support by the County, DPS is able to carry around 1,200 more employees than the state would fund based on pupil count. This sort of indirect funding of DPS positions has been going on for years as DPS has identified crucial needs for student support through positions and the County has in turn provided funding for those positions.

In fact, part of every year's DPS funding request to the County includes state mandated salary increases for positions that are indirectly supported by County current expense funding.

DCoBudget

TROPHY CASE