By Jordan Meadows
Staff Writer
Wake County commissioners unanimously approved a $2.28 billion budget for fiscal year 2027, adopting a plan that increases spending while also raising property taxes for residents.
The budget includes a 2-cent property tax increase, bringing the rate to 53.71 cents per $100 of assessed value and generating an additional $62 million in revenue. For the owner of a $450,000 home (around the county's median value) that translates to about $90 more annually, not including any additional increases by municipalities.
Combined with an average of nearly 5% in fee increases for solid waste, water and sewer, and stormwater services, a Raleigh resident could see a total increase of $122 to annual bills from the city. With Wake County's tax rate increase layered on top, the combined hit to the median homeowner amounts to roughly $144, bringing combined bills up to nearly $3,600.
The new budget, which takes effect July 1, represents roughly a 5.4% increase over the previous year's spending plan. County officials pointed to multiple factors driving the increase, including a roughly $35 million revenue shortfall tied to a growing number of property tax appeals and the so-called Blue Ridge property tax loophole. The county, like the city of Raleigh, relies on property tax revenue to consistently grow.
Thousands of property owners have appealed higher assessed home values that came out in 2024, and as of April, many of those cases remain unresolved, placing another $125 million of Raleigh's tax base in limbo.
Nevertheless, Mayor Janet Cowell said revenues are down by about $2 million this year.
Leaders cited broader economic pressures stemming from federal decisions, including tariffs on foreign goods and global instability such as the conflict in Iran, which they say have driven up costs locally. Officials emphasized that if the county were not stepping in to fund core services like education, social services, and public safety at current levels, the property tax rate could be closer to 30 cents.
Public safety investments extend to the city level as well. Raleigh's budget adds 23 new police officer positions at around $3.8 million, three fire marshals, 12 firefighter positions, and additional funding for a second fire academy—bringing the fire department's budget increase to $3.31 million. Six new 911-call operators will be added for nearly $500,000. The city is also spending $2 million on cleaning and maintaining parking garages while keeping the two-hour free parking program running at five garages, and over $600,300 for six new building safety positions involved in permitting and inspection.
"We committed the $8 million in new revenue available in FY2027 to important public safety needs such as reopening the jail annex and adding new EMTs to meet the demands of growth," Board Chair Don Mial said. "Tax increases are the last thing that we want to do.”
To offset rising costs without further burdening taxpayers, the city made targeted cuts. Forty-five currently vacant positions (all outside public safety) were eliminated, saving $3.5 million. Another 26 positions will be held vacant at the start of fiscal year 2027, saving $1 million.
Retirement medical benefits for new employees were also restructured, requiring five additional years of service for qualification and saving around $1.5 million. The City Council approved the budget without changes from the original proposal put forward by City Manager Marchell Adams-David. Additional funds were also allocated to fully implement minimum pay increases introduced in September 2025 with total pay increases ranging between 11% and 14% across the proposed and prior-year budgets.
A significant portion of the county budget is dedicated to education, which remains the county's largest expense. The plan allocates $823 million for education operating costs, with about 65% of that compensating for insufficient state funding, according to county leaders. That includes $25.3 million to fully fund the Wake County Public School System's request, in addition to the $743 million provided the previous year for facilities and operations. Wake Technical Community College will receive an additional $1.8 million to support maintenance, staffing, and rising utility costs, on top of $42 million allocated the year prior. Wake County Smart Start is set to receive $2 million to expand early childhood education by adding 50 new seats for 3-year-olds and continuing pre-K access for eligible 4-year-olds.
Education funding pressures are compounded by a looming gap in teacher pay. While the state will cover raises for state-funded employees, it will not do so for federally and locally funded staff. The school board's proposed budget accounts for roughly a 3% raise for all state-funded staff at an estimated cost of $8 million. But matching any state raises for employees outside that category would require the county to fund the difference itself, a cost that the school board's current proposal does not account for, potentially leaving millions of dollars unfunded.
Commissioners also made a late addition to the budget to preserve two food security programs at risk of disappearing with the expiration of federal pandemic relief funding under the American Rescue Plan Act. The board approved $110,000 to continue the "Double Bucks" program at nine farmers markets across the county, which allows SNAP/EBT users to double their spending power on fresh, locally grown food, and the "Farm to Early Childhood Education" initiative, which delivers boxes of produce, eggs, jams, and honey from local farms to 15 family childcare homes and four childcare centers serving low-income families.
The tax increase drew concern from some residents during public comment in the budget process, particularly as housing costs continue to climb across Wake County. Still, commissioners ultimately framed the budget as a necessary response to growth, rising costs, and structural funding challenges facing one of the fastest-growing regions in the nation.
