There’s an old joke that goes like this: A doctor visits a patient in the hospital room and says, “I have some good news and some bad news – which do you want first?”

And the patient responds, “I guess I’ll hear the bad news first?”

The doctor then says, “Well, your test results are in; you have an incurable disease, and you’ll be dead within a week. And there’s absolutely nothing we can do about it.”

The stunned patient takes in what he’s heard and says, “Oh my God, what could possibly be the good news?”

The doctor points to a nurse standing out in the hallway and says, “You see that fantastically beautiful nurse out there?”

“Yeah,” the patient responds.

“Well, I’m having sex with her.”

At the Guilford County Board of Commissioners meeting on Thursday, May 7, Guilford County Manager Victor Isler had some very bad news for county taxpayers, but he also offered some good news that’s about as good as the “good” news the hospital patient received.

Isler’s “good” news for those listening to his presentation was that his proposal calls for the county to lower the tax rate to the lowest level since 2006.

The bad news, however, is that that doesn’t matter one bit when it comes to the size of your tax bill: If the Guilford County Board of Commissioners adopts a budget anything like the one the manager is recommending, property owners are going to see a big spike in their property tax bills at a time when gas is creeping up toward $5 a gallon and food prices are sky high as well.

During the presentation, Isler was sweating heavily and, several times while speaking, he had to take a handkerchief and wipe his glistening forehead. When asked later if he was sweating because of the size of the tax increase, he said no, it was because of the hot lights just over the speaker’s podium.

And he did speak for about an hour and it is somewhat warm in that spot, but it must also be said that he was wiping sweat off his forehead before he even stood up to walk over to the podium.

So, the somewhat harsh reality of the financial challenges facing the county may very well have accounted for at least some of those drops on his forehead.

If this budget is adopted, Guilford County property owners will see a very significant tax increase despite county leaders highlighting the fact that the official property tax rate would go down.

If the commissioners made the rate revenue neutral (they won’t), the county would still receive about $12 million in new revenue that would have been the result of new growth in the tax base over the past year. But other than that, the overall amount coming in from taxpayers would have been the same.

If the commissioners kept the current rate where it is (thankfully, they won’t), the commissioners would have an additional $175 million from taxpayers due to higher property values.

Isler’s proposed budget essentially splits the baby by calling for the county to impose an additional $89 million charge on county property owners. That new $89 million would be available for the commissioners every year until the next revaluation.

The proposed fiscal 2026–2027 budget would lower the county’s tax rate from 73.05 cents to 61.9 cents per $100 of assessed value following the 2026 countywide property revaluation.

Although Guilford County officials have emphasized that the proposed county property tax rate would fall, many homeowners would still likely see substantially higher county tax bills because of large increases in their property values. Estimates discussed publicly during the revaluation process suggested that the average residential property value in Guilford County increased roughly 42.5 percent during the countywide reassessment.  The medium increase was up 59 percent, but let’s say an owner was luck and only had that 42 percent increase.

That means a homeowner whose property was previously assessed at $300,000 could now see that same property valued at roughly $427,500. Under last year’s tax rate, that homeowner would have paid about $2,191 annually in county property taxes. Under the proposed new budget and tax rate, the county tax bill on a $427,500 home would rise to about $2,646 – an increase of roughly $455 a year.

The proposed rate is well above the county’s stated revenue-neutral rate of 53.26 cents. Revenue neutral is the rate that would bring in roughly the same amount of property tax revenue as the previous year after revaluation.

Under Isler’s proposal, the county would tax residents at a rate 8.64 cents above revenue neutral.

During his lengthy presentation Thursday night, Isler acknowledged that residents are worried about rising costs and the impact of the revaluation.

“The revaluation of property has created an understandable concern about future cost hardship and also economic resiliency,” Isler said during his speech.

Still, Isler argued that the county needed the added revenue to continue funding schools, public safety, social services and other county operations while also dealing with inflation, population growth and uncertain federal funding.

The proposed county budget totals approximately $1.1 billion – including a General Fund budget of about $935.5 million. The manager described the spending plan as a balancing act between public demands and county residents’ ability to pay.

“This recommended budget reflects a careful balance between what is required, what is demanded, and what is reasonable,” Isler stated Thursday. “It maintains essential services, honors our commitments, invests in the future, and recognizes the real pressures residents are facing from inflation and the rising cost of living.”

While county leaders repeatedly emphasized that the tax rate itself is decreasing, the more important number, of course, for homeowners, will be the actual dollar amount they pay.

The proposed rate is also notable because Guilford County commissioners have spent months publicly discussing the importance of minimizing the impact of revaluation on taxpayers.

County officials said that education is the biggest reason the proposed rate remains above revenue neutral.

According to the county, 5.53 cents of the 8.64 cents above revenue neutral is tied to education spending, including Guilford County Schools operating expenses and debt payments associated with the school bonds approved by voters in 2022.

The proposed budget would allocate about $307.5 million to Guilford County Schools for operations and capital needs – an 8 percent increase over the previous year.

The proposed increase for Guilford County Schools includes:

  • $7.9 million for operating expenses and inflationary costs
  • $9 million toward a phased pay plan for “classified” employees like cafeteria workers, janitors and bus drivers
  • $1.8 million for school safety and security enhancements
  • $5 million for a student technology initiative
  • $1.3 million for capital expenses such as replacement activity buses

The county also plans to continue funding debt service related to the school bonds approved by voters.

During his remarks Thursday, Isler stressed repeatedly that the county needed to continue following through on its school capital plans.

“The county must get back on track with the school capital debt-service plan that was established in 2022,” Isler said.

At several points during his presentation, Isler tried to frame the large spending increases as unavoidable costs associated with growth, state mandates and previous commitments by commissioners.

“These are not abstract increases,” Isler said. “They are costs of sustaining our commitments, meeting our mandates and maintaining appropriate service providers.”

Isler also emphasized population growth and economic development as justification for increased county spending.

According to the county, Guilford County currently has more than 558,000 residents and is projected to add approximately 86,000 more over the next two decades.

The manager pointed to major economic development announcements and manufacturing projects as evidence that Guilford County must continue expanding its infrastructure and services.

The proposed budget includes funding for a wide variety of county initiatives and programs, including:

  • Three new Environmental Health positions tied to development permitting and inspections
  • $150,000 for small-area growth planning
  • $238,014 for a new code compliance program focused on unsafe residential structures
  • More than $558,000 to continue programs previously funded through federal ARPA money
  • Additional social services positions related to Medicaid, foster care and guardianship cases
  • $2.66 million for library support in Greensboro, High Point, Gibsonville and Jamestown
  • $1 million for homeless outreach and emergency shelter efforts
  • $860,000 for eviction mediation and landlord engagement programs

The proposed budget would also continue funding for a variety of county technology and operational upgrades.

Those include:

  • $1.2 million for sheriff’s office body camera replacement
  • $1.5 million for technology replacement planning
  • $3 million annually toward a new enterprise resource planning software system
  • Additional staffing in the County Attorney’s Office, Information Technology and other departments

The budget would add 28 new county positions overall.

County officials noted that the number of new positions is far smaller than the 97 positions added in the previous year’s budget.

Even so, Isler said that the county left many departmental requests unfunded.

According to Isler, about 50 requested positions and about $18.6 million in requested operating costs weren’t included in his recommended budget.

During the presentation, Isler repeatedly stressed “fiscal discipline” and the county’s strong financial condition.

Isler highlighted that Guilford County continues to maintain high credit ratings and said the proposed budget reduces the county’s use of fund balance from $17.8 million to $10 million.

Isler also repeatedly discussed the county’s desire to diversify revenues away from property taxes.

One major point of discussion during the presentation was the possibility of another one-quarter cent sales tax referendum. The Rhino Times has lost track of how many times the commissioners have tried to sell that sales tax hike to the voters, but the Rhino does know the voters always vote it down.

County officials said a one-cent sales tax could potentially generate approximately $28.7 million annually if approved by voters in November.

Isler argued that additional sales tax revenue could eventually help relieve pressure on property taxes.

“Revenue diversification” became a recurring phrase throughout the presentation.

The manager also warned commissioners about uncertainty coming from Raleigh and Washington.

County officials specifically mentioned Senate Bill 889, a proposed state measure related to property taxes and revaluation limits, as a possible threat to future county finances.

Isler expressed concern about changing federal funding formulas and reductions in reimbursement rates.

At one point, Isler said recent federal policy changes would create a $3.1 million deficit related to food and nutrition services funding.

He also warned that nonprofits across the region are struggling because of reduced federal and state funding.

“You heard from nonprofits across the region that they are experiencing an erosion in federal as well as state funding,” Isler said.

Throughout the presentation, Isler often returned to broader themes about “community conditions,” “fiscal responsibility,” “growth management” and “quality of life.”

The presentation lasted about an hour, with the manager moving repeatedly between budget numbers, broad philosophical themes and long discussions about regional growth patterns and county strategy.

Still, the main takeaway for many residents will likely be straightforward: even with a lower official tax rate, the county is proposing a budget that would collect substantially more property tax revenue than a revenue-neutral budget would.

The county manager’s proposed budget is only a recommendation.

County commissioners can and will make changes before adoption.

Residents will have an opportunity to comment during a public hearing scheduled for Thursday, June 4.

Commissioners are currently expected to consider adopting the budget at their Thursday, June 18 meeting.

The new fiscal year begins July 1 and runs through June 30 of next year.

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