Durham leaders say brace yourself for the next budget —what’s driving the warning
AI-generated summary reviewed by our newsroom.
- Durham City Manager Bo Ferguson will present his recommended budget May 18.
- The Durham City Council heard from residents at the budget’s first public hearing.
- Residents want the city’s leaders to consider housing, fare-free buses, and safety.
Durham’s 2026-27 budget season began this week with City Council members warning residents to brace for a challenging year.
The country faces economic hardships: a rising cost of living, federal funding cuts to social programs, and the expiration of the remaining American Rescue Plan Act funds that Durham received in 2021.
“I want to be pretty honest with you, it’s going to be tough year,” Councilman Nate Baker said Monday night. “The Trump economy is hitting everyone quite hard right now. Durham is not immune to that.”
The council held the first budget hearing Monday, before City Manager Bo Ferguson presents his recommended spending plan May 18, which will include a proposed tax rate.
Last year, the council approved his $772 million budget with a tax rate of 43.71 cents per $100 of assessed property value and funding for employee raises, GoDurham buses, the Vision Zero traffic-safety plan and 42 new city staff positions.
‘A moral document’
Several residents pressed the council to prioritize affordable housing, employee pay, and investments to public safety and infrastructure.
The budget is a “moral document,’ said Stella Adams.
“It tells the truth about who we value and whether the people who make this city work can afford to live in the city they serve,” she said.
In Durham, a single resident needs to make $52,000 a year to meet basic needs, according to PayScale’s cost of living calculator. That’s about $25 an hour. The calculator also shows an average energy bill in the city is $205 a month, the median home price is $541,605 and a doctor’s visit is $158.
Within the last five years, average rents in Durham have risen over 50%.
Jason Davis, a firefighter, asked the council to approve a 5% base pay increase and full funding of the merit raise system approved last year.
“Durham continues to grow rapidly, and with that growth comes an increased demand for emergency services,” he said. “Durham firefighters work 24-hour shifts. ... A 5% base raise helps ensure that our compensation remains comparable to our peer cities and recongnizes the responsibility, training, and commitment required of the men and woman who protect this city.”
Other speakers urged the council to keep city buses fare free.
Gregory Williams of Bike Durham asked the city to work with county leaders to secure about $2 million in transit sales tax funding to support the program, “rather than raise property taxes.”
“Fare-free transit continues to save Durham families hundreds of dollars each year, while increasing their access to jobs, groceries, family, church, health care, education,” Williams said.
Some speakers urged the council to directly address housing instability and homelessness, including by expanding youth employment and community violence intervention.
“Violence prevention cannot be treated like a short-term pilot program,” said community advocate Kani Adon Bermudzez-Bay. “It must be treated like public safety infrastructure.”
Next steps for the City Council
“The budget is the most important duty we have,” said Mayor Leo Williams.
After Ferguson presents his recommended document May 18, there will be another public hearing on June 1.
- City Council work sessions on budget: May 27, May 28, June 4
- City Council adopts budget: June 15