Alamance County Officials Face $12.9 Million Budget Shortfall Starting July 2026

A five-year general-fund model prepared by county staff projects a structural shortfall of about $12.9 million beginning in FY 26-27, the fiscal year that starts July 1, 2026, forcing officials to consider revenue increases or program cuts. The model and staff presentations presented to the board make clear that the gap is not a one-time variance but a recurring imbalance if no changes are made.

The FY 25-26 budget was adopted at $242.1 million and later amended to $248.0 million. Through Dec. 31 of the current fiscal year collections totaled roughly $145.6 million while expenditures were about $106.1 million, and draft projections showed revenues slightly exceeding expenses by roughly $522,000 at year-end. A budget analyst cautioned, “We used a significant amount of appropriated fund balance to balance the FY 25-26 budget,” a move staff say increases vulnerability going forward.

Draft reserve figures show an unassigned fund balance of $37,200,000, or about 17.18 percent of expenditures, below the board-adopted target of 20 percent. Staff reported, “Our unassigned fund balance, we see a $3,700,000 reduction in the category from 23–24,” signaling a year-over-year decline in undesignated reserves that narrows the county’s buffer against future shortfalls.

County spending patterns add pressure: the General Fund was set at $242.1 million while the county’s total budget last year approached $287 million. The Sheriff’s department is budgeted at $40.5 million and the school system at nearly $59 million, figures that together account for roughly 41 percent of General Fund appropriations. Other large categories named in staff summaries include social services, debt service, the health department, and EMS.

Board members spent two days at the Graham Public Library for a retreat “barely three weeks into the new calendar year,” facilitated at no cost by two NCACC facilitators identified as Emory and Cannon. County Manager Heidi N. York said she hoped the sessions would foster “a rich discussion” about priorities for the new budget season. Commissioner Ed Priola offered blunt feedback, saying, “The problem is that we’re spending more than we’re taking in. We’ve had the sugar high of the covid money, and we as a board are not adjusting to saying ‘no.’ It’s not all necessary. We’ve got to start with protecting the community. Everything after that is not a sacred cow.” Priola also summarized the retreat mood: “I like the way it went this year,” while criticizing some facilitators’ conversation starters for perceived bias.

Staff and county analyses list tangible options that could close portions of the gap: a property tax increase or elimination of services some leaders consider non-essential. Specific measures discussed in prior sessions include potential closures of library branches in Graham, Mebane and North Park and cuts to funding for nonprofit rescue and family services; those proposals drew protests and a lengthy public comment period last summer.

Published budget materials contain conflicting language on the property tax rate for 2025-26, one document lists 49.4 cents per $100 of valuation while another line in county budget highlights reads “increase by 3.7 cents to 0.469 cents per one hundred dollars ($100)”, a discrepancy staff will need to reconcile alongside the five-year model and reserve projections. With Susan R. Evans listed as finance officer and Heidi York leading the administration, commissioners now face concrete choices as they move into the formal budget cycle for decisions to take effect by July 1, 2026.