Guilford County faces $254 million budget surge as voters decide on tax cap

Since Democrats took control of the Guilford County Board of Commissioners in December 2020, the county's annual General Fund budget has grown by approximately $254.6 million. The board adopted a fiscal 2026-2027 budget of $889.2 million in June, marking a roughly 40 percent increase over six years. This expansion contrasts sharply with the previous eight years of Republican control, during which the budget rose by only about $47 million.

The surge in spending coincides with substantial increases in property tax revenue. In 2022, commissioners maintained a tax rate of 73.05 cents per $100 of assessed value despite a countywide revaluation. They did not lower the rate to the revenue-neutral level of 59.54 cents. That decision generated an estimated $92 million in additional annual property tax revenue. This year, the board raised the rate by 5.9 cents to 78.95 cents, a move expected to bring in another $44.3 million.

Voters in North Carolina will decide on Tuesday, November 3, whether to approve a constitutional amendment requiring the General Assembly to limit local property tax increases. The ballot language reads: “Constitutional amendment requiring limits on property tax increases by local governments.” The amendment does not specify a percentage or dollar cap. State legislators will determine the specific limits and any exceptions after the vote.

Commissioners argue the budget growth is necessary to cover schools, public safety, employee compensation, and infrastructure. They cite inflation and reduced state and federal funding as primary drivers. Chairman Skip Alston and other board members have pointed to the costs of major school construction and rising labor expenses. However, the county's financial reserves have declined as spending increased.

The county's unassigned General Fund balance fell from $102.1 million at the end of fiscal 2023 to $58.2 million by the end of fiscal 2025. This represents a drop of about $44 million in two years. County policy requires reserves to remain at least 8 percent of the subsequent year's budget. The most recent audited figure placed the reserve at approximately 7 percent, below that minimum. The $58.2 million balance equates to about 6.5 percent of the newly adopted $889.2 million budget.

A levy limit would restrict the total amount of property taxes collected, rather than the tax rate itself. This distinction matters because counties can increase revenue without raising rates, as Guilford County did in 2022. If the amendment passes, the state legislature must write laws defining the caps. Opponents warn that limits could hinder essential services during population growth, while supporters say they provide protection against escalating tax burdens.