It’s getting down to prime time for the Guilford County Board of Commissioners as members begin hashing out a budget and, just as importantly, a new tax rate in the wake of the county’s recent property revaluation.

The stakes are unusually high this year.

The revaluation pushed property values up sharply across the county, which means that if the current tax rate stays the same, Guilford County would take in roughly $175 million in additional revenue.

That possibility has set off alarm bells among residents and created a political balancing act for commissioners who are hearing loudly from constituents worried about higher tax bills.

At the same time, commissioners are facing increased demands for spending – especially for schools and county services, along with inflation that’s driven up costs across the board.

Two Republican commissioners – Alan Perdue and Pat Tillman – have been pushing to keep the tax rate as close to revenue neutral as possible, meaning the county wouldn’t take in more total revenue despite the higher property values.

Perdue said that’s where he’d like to start, even if the final number ends up somewhat higher.

“I’ve been telling folks I’d like to see us go revenue neutral if at all possible,” Perdue said. “We need to take a look at our expenses and figure out where we should be and tighten our belts like people are having to do in their own households.”

Perdue said Guilford County Manager Victor Isler appears to understand the pressure residents are under and has already taken steps to rein in spending.

“He’s challenged department directors to look for ways to streamline,” Perdue said. “They’ve already identified about $3 million in the current year that they could cut back. I think he understands the demand that’s on our citizens.”

Perdue also said a key focus of the budget discussions should be distinguishing between mandated and non-mandated services – that is, what the county has to fund versus what it chooses to fund.

But while Perdue says revenue neutral is his preferred starting point, he acknowledged that reality may push the final tax rate higher.

“We’ve got to look at the numbers and figure out where we land,” he said.

While commissioners debate the numbers, Perdue said the message from residents has been consistent.

“They’re all concerned about leaving the tax rate where it’s at – that’s the biggest thing,” he said. “What I can’t tell you is how far from there it will be. But nobody’s telling me they want their taxes to go up significantly.”

Perdue said that concern has come through clearly in town halls, emails, phone calls and everyday conversations.

“It’s a very consistent and clear message,” he said. “People are facing tough demands right now – food, fuel, just life in general – and then you add in a significant increase in property values. They’re worried.”

At the same time, other county leaders say they can’t ignore growing needs.

Chairman of the Guilford County Board of Commissioners Skip Alston has made it clear that the Board of Commissioners will not leave the tax rate unchanged and take in the full $175 million windfall – but he’s also been equally clear that revenue neutral is not going to happen.

“It’s not going to be $175 million extra, and it’s not going to be zero,” Alston told the Rhino Times earlier this month.

Alston said the final number will fall somewhere between those two extremes. He has pointed to the increasing demands on county services, driven in part by population growth and economic development projects like JetZero, as reasons the county needs additional revenue. The chairman also emphasized that inflation is a major factor in the county’s budget.

The commissioners have spent themselves into a corner over the last half decade. Since Democrats took control of the board a half decade ago, spending has increased significantly compared to the previous Republican majority, which went eight years without raising taxes and even reduced the rate to revenue neutral following a revaluation.

In the 2022 revaluation, the current board left the tax rate unchanged and took in more than $90 million in additional annual revenue. In the years that followed, the board approved a number of new initiatives and expanded departments, including public relations and minority- and women-owned business programs.

The board also placed a $1.7 billion school bond on the ballot, which voters approved.

Even with the additional revenue, county leaders eventually began drawing down the county’s fund balance.

By early 2025, even commissioners who supported increased spending began to acknowledge financial limits. The current fiscal year has been something of a “bridge” year, with many county leaders looking to the revaluation as a way to replenish county coffers.

That’s why concerns about the upcoming budget and potential tax bill increases are so widespread.

Several commissioners told the Rhino Times that the county is looking for ways to control costs and that the manager is having serious discussions with department heads about where savings can be found.

Commissioner Mary Beth Murphy said she wants to see a full picture of the county’s financial needs before committing to a position on the tax rate.

Commissioner Kay Cashion said she’s hearing many of the same concerns from residents that Perdue described. She said people are already struggling mightily in the current economy and that the board needs to keep that in mind as it crafts the budget.

Tillman, meanwhile, has been one of the strongest voices pushing for a revenue neutral approach and has been working to build support for that position.

However, based on recent discussions and public statements, it appears increasingly impossible that the board will land on a fully revenue neutral budget.

With Alston making clear that additional revenue will be needed, the debate now seems to be shifting toward how much of an increase county leaders and residents are willing to accept.

The school system is a major part of that equation.

Perdue said the request from Guilford County Schools this years appears more restrained than in previous years.

“It’s not to the level we’ve seen in the past with just a totally ridiculous number,” he said of one past year in particular. “I appreciate them not coming in with something off the wall and unrealistic.”

Still, even a more moderate request will require additional funding at a time when commissioners are trying to hold the line on taxes.

Beyond schools, the county is also grappling with long-term capital needs that could stretch over multiple years.

Perdue said those projects should be approached carefully.

“You can’t do it all at one time,” he said. “You’ve got to phase it in and do what you can.”

The timeline for the budget process is now coming to a head.

In mid-May, commissioners will hear the county manager’s proposed budget. In June, the board will hold a public hearing before adopting a final budget later that month for the fiscal year beginning July 1.

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