ASHEVILLE, N.C. (828newsNOW) — Buncombe County commissioners on Tuesday reviewed the county’s finances in their final scheduled budget workshop, focusing on how this year is ending and what the next budget cycle may look like.
County staff said the current fiscal year is ending in stronger financial shape than expected, with revenues coming in above projections and spending coming in under budget.
For fiscal year 2026, the county budget totals about $438.1 million in spending, with $437.5 million in expected revenue. Officials said they originally balanced the budget with a small draw from savings, but the latest projections show the county is likely to add between $10.4 million and $13.9 million back into its fund balance instead.
That improvement is largely because of higher-than-expected tax collections. Property tax revenue is up about $4.5 million, and sales tax is running about $2.5 million ahead of budget. County staff said both were intentionally budgeted conservatively last year because of economic uncertainty following recent regional disaster impacts.
Some areas are coming in lower than expected, including certain federal and state reimbursements, ambulance billing tied to Medicaid changes, and jail-related revenue. But overall, officials said the county is still collecting more than anticipated.
On the spending side, departments are projected to use about 98 percent of their budgets. Savings are coming from lower-than-expected salary and benefit costs, along with unspent operating funds.
County leaders said the result is a fund balance that will remain around 19 percent to 20 percent of annual spending — within the county’s policy range and enough to cover roughly 10 weeks of operations if revenues stopped coming in.
Officials said the stronger reserves have helped stabilize the county’s financial outlook and improved its credit position.
Commissioners also reviewed early updates to the proposed fiscal year 2027 budget, which is projected at about $485.1 million in spending.
Changes since the last draft include higher property tax revenue estimates, new grant funding, some department cuts, and delayed hiring for several positions. Together, those adjustments reduce the gap between revenue and spending by about $7.5 million.
Even so, major spending increases remain in education, public safety, human services, and infrastructure. Education funding makes up the largest share of the budget at more than $137 million.
Public safety proposals include new positions and increased costs for the sheriff’s office, emergency services, and detention center operations, along with upgrades to equipment and technology.
Other increases include hiring in health and human services, maintenance and planning departments, and expanded funding for elections, IT systems and county facilities.
The budget also includes higher debt payments tied to capital projects and continued funding for housing, transportation, and early childhood programs.
Staff told commissioners the budget is moving closer to balance but will still require additional adjustments before final adoption. A public hearing is scheduled for May, with final approval expected in June.