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Durham Co. passes budget with 4% property tax increase. Here’s where that money is going.

The American Tobacco complex’s Lucky Strike smokestack and the Durhams skyline, photographed in 2000.
The American Tobacco complex’s Lucky Strike smokestack and the Durhams skyline, photographed in 2000. File Photo

Durham County passed a $889.5 million that will push residents’ tax bills up 4%, largely to boost pay for county employees and public school employees.

The Board of Commissioners passed the budget by a 5-0 vote Monday night.

“This budget,” Vice-Chair Wendy Jacobs said, “is the biggest budget in the history of Durham County and is a huge investment in the people of our community and a reflection of our values and our priorities.”

How much will taxes increase?

Taxes will increase, something Durham County residents knew when they overwhelmingly voted for a trio of bonds last fall.

The tax rate will rise by 3 cents to 75.22 cents per $100 of assessed property value if the manager’s plan passes.

On a $400,000 house — the current median — county taxes would rise $120, or by about 4%, to roughly $3,000.

The city of Durham has a separate city property tax for property owners in the city limits.

Half the tax increase would pay for the bonds, which will help fund new buildings and renovations for Durham Public Schools, Durham Technical Community College and the Museum of Life and Science.

Durham County Manager Kimberly Sowell speaks about her career on Wednesday, Feb. 22, 2023, in Durham, N.C.
Durham County Manager Kimberly Sowell speaks about her career on Wednesday, Feb. 22, 2023, in Durham, N.C. Kaitlin McKeown kmckeown@newsobserver.com

What’s in the budget for Durham Public Schools?

The budget gives DPS the full $10.8 million increase in local money the Board of Education requested in March.

Teachers and staff would get raises.

  • Employees would get at least a 4% salary increase, plus better retirement and health insurance benefits.
  • A $1,500 staff retention bonus after the next school year begins was proposed by the superintendent.

Elementary school students lined up at a budget hearing last month to campaign for better pay for school staff.

“They deserve raises because they try to hold back yelling so they won’t accidentally scare the children, which I think is super thoughtful,” said Angie Keel, a second-grader at Lyons Farm Elementary.

DPS gets the largest share of the county budget. It’s increasing this year by 6.1% to nearly $188 million, about $4,650 per student.

What’s Durham County spending its tax dollars on?

The budget takes effect July 1. The spending plan marks a 12% increase from last fiscal year’s budget.

Major spending increases include:

  • Pay raises: The largest single increase in the budget, $18.6 million, is going to raises. County employees are in line for raises of at least 7% and the minimum hourly wage rises to $19.22.
  • Sheriff’s office: An $1.1 million new contract for the county jail is part of what’s increasing the public safety budget 12.9% to $83 million.
  • New vehicles: $4.3 million dollars for new and replacement vehicles — 60 in total.
  • Pre-K expansion: A 17% increase to $7.9 million annually.
  • Durham Technical Community College: A 20% increase to $11.7 million annually.

County Manager Kimberly Sowell received a round of applause at Monday night’s meeting. It’s the second budget passed under her leadership.

“We throw everything in there but the kitchen sink,” Commissioner Nimasheena Burns said. “She went hard in the paint.”

“Now, let’s get to work,” Chair Brenda Howerton said.

The Durham Report

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This story was originally published June 13, 2023 at 9:47 AM with the headline "Durham Co. passes budget with 4% property tax increase. Here’s where that money is going.."

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Mary Helen Moore
The News & Observer
Mary Helen Moore covers Durham for The News & Observer. She grew up in Eastern North Carolina and attended UNC-Chapel Hill before spending several years working in newspapers in Florida. Outside of work, you might find her reading, fishing, baking, or going on walks (mainly to look at plants).
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