Alamance County budget cuts spending, proposes tax hike to stay afloat

Alamance County residents could see a higher property-tax bill even as county government plans to spend less next year. Manager Heidi York proposed a 2026-27 general fund budget of $239.1 million, down 1.2 percent from the $242.1 million approved last year, but still said the county needs a 2.25-cent tax increase to stay financially stable.

York presented the plan to the Alamance County Board of Commissioners on May 24 as a hard balancing act between keeping core services intact and avoiding further damage to the county’s reserve position. The proposal includes a 2 percent cost-of-living raise for county employees, a 2 percent merit raise for workers who meet performance expectations and about a 2.5 percent increase in the county’s support for the Alamance-Burlington School System’s day-to-day operations. That school increase falls well short of the 10 percent ABSS had asked for.

The budget also calls for staffing reductions in several departments, shorter library hours and other cuts York described as necessary if the county wants to avoid sliding deeper into deficit spending. Her office said the county first faced a $13 million gap between projected revenues and expenses, and that gap grew to $23 million once department requests were added up.

The squeeze reflects a county government that has already been leaning heavily on savings. York said the current budget uses $11 million in unassigned savings, the largest amount in Alamance County history. She warned that the county’s unassigned fund balance would fall to 15.1 percent of yearly expenditures, below the county’s own 20 percent target. County policy materials say the Local Government Commission recommends at least 8 percent of general-fund expenditures in unassigned reserves, while Alamance County’s performance rules set a 17 percent floor for participation in its savings program.

York also tied the present strain to the county’s post-revaluation tax decision in 2023, when commissioners cut the rate from 65 cents to 43.2 cents per $100 of assessed value after the countywide revaluation. York said her own 2023 recommendation had been 45.43 cents, compared with the 42.59-cent revenue-neutral benchmark used by commissioners.

Commissioner Sam Powell, installed on the board in March 2026 after the death of commissioner John Paisley Jr., backed York’s warning that the county had fallen behind after the 2023 tax cut and praised staff for trimming salaries and positions. Chairman Kelly Allen also signaled caution about asking taxpayers for more. York said the manager’s office prepares and submits the annual budget and capital plan, and the debate now centers on whether Alamance County can rebuild reserves without depending on one-time savings to cover recurring costs.