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Durham County residents could pay higher property taxes under a proposed $1.045 billion budget to help fund growing investments in education and emergency services.
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Monday night, County Manager Claudia Hager presented her Fiscal Year 2026-27 budget recommendation to the Board of Commissioners, saying the county is entering a difficult financial environment after years of strong revenue growth.
Her proposed billion dollar budget would raise property taxes by two cents, making the countywide tax rate of 57.42 cents per $100 of property value. The total budget is a 0.67% increase over the current year’s $1.04 billion budget that was passed last summer. The current tax rate is 55.42 cents per $100 of property value.
“Give the current economic climate, maintaining the county’s fiscal stability remains my foremost priority,” Hager said. “We need to remain an organization that performs well, not only in good times, but through economic, environmental and social uncertainty as well.”
Hager said the tax increase became necessary as natural growth in key revenue sources slowed dramatically, particularly after a wave of commercial property tax appeals reduced valuation gains. She pointed to weak “natural growth” in revenues, which is growth that can normally cover rising costs without raising tax rates.
“The county must raise the property tax rate to collect more revenue, or slow expenditure growth, or a combination of both options,” she said, adding that she tries to limit the tax increase and its impact on residents, however, “when slowing growth in other revenue sources compete with higher service demand, the options to fill those gaps are limited to property tax increases.”
The proposed two-cent increase will add $17 million and will support increased budget needs for Durham Public Schools, pre-kindergarten, and emergency service expansion.
For homeowners who have criticized the county and the city for their higher property values after last year’s revaluation, the two cent increase will mean an even higher bill.
As an example, the owner of a home valued at $400,000 will see a county property tax bill of $2,296 — an $80 increase — if the budget is approved by the Board of Commissioners next month.
To get that number, you take the home value, divide it by 100 and multiply it by the proposed rate of 0.5742 (400,000/100 x 0.5742).
Durham County residents who live within city limits will also pay a citywide tax rate. That amount will be determined by the Durham City Council after City Manager Bo Ferguson presents his budget recommendation later this month.
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The largest priority in Hager’s budget recommendation is Durham Public Schools. Her recommendation is not as high as the budget proposed by Superintendent Anthony Lewis of $244.7 million. Two months ago, dozens of teachers and school staff rallied outside a Board of Education meeting to demand the school district raise its minimum wage for classified workers.
The plan includes $235 million for the school district, which is built on a proposed $10.9 million in new funding. The county would also provide $5 million in capital funding for the district to support school resource officers, public health services and debt payments tied to school construction. Durham County provides about $87.6 million in additional support to DPS through different programs and departments.
Hager said early education would receive $10.16 million for Durham’s pre-K support, which is a $1.27 million increase over last year’s recommendation. Durham Technical Community College would receive $12.99 million in county funding, a 3% increase over the current year.
“The county’s commitment to education continues to be unwavering,” she said. “I am aware of the remaining funding gaps within the district, but there are also limits to what the county can annually fund for DPS without either significantly limiting available resources for other county services, or needing to increase the property tax rate every year.”
Public safety and human services also represent a significant portion of the proposed spending.
Hager suggests:
The proposal also includes $3.6 million in county pay raises, including $1.6 million for county employee insurance and a 2% cost-of-living adjustment. Hager said while the Durham County population has grown 15.4% (to over 352,000) over the past decade, her budget recommendation adds a “modest” 7.03 new full-time equivalent positions for the next year.
For the county’s human services departments (social services and health), there is a recommended $109.9 million. Within that budget is $500,000 for Homeless Strategic Plan implementation and $300,000 for a Master Aging Plan.
Hager warned commissioners that financial pressures are likely to continue.
“I will continue to caution our residents and the board that we are more likely to experience a growing gap between available resources and growing needs over the next several years,” she said.
The Board of Commissioners will now hold a series of work sessions in May and June before voting on the budget June 8.
A public hearing is scheduled for May 26 at the commissioners’ meeting for residents to comment on the proposal.
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This story was originally published May 11, 2026 at 11:49 PM.