ASHEVILLE, N.C. (828newsNOW) — Buncombe County commissioners are beginning work on a fiscal year 2026-27 budget expected to top $500 million, as rising costs, economic uncertainty and growing service demands drive a significant increase in proposed spending.

During a March 24 work session, county staff presented a “first-pass” budget totaling more than $504 million in general fund spending, a more than 15 percent increase over the current $438.1 million budget.

County Manager Avril Pinder described the proposal as a starting point, including $4.4 million for 37 additional positions, which she called “a conservative ask” given the scope of needs across departments.

Officials outlined a timeline that includes a recommended budget on May 5, a public hearing on May 19 and final adoption scheduled for June 2.

County leaders said the budget process comes amid continued financial pressure from inflation and broader economic conditions. Staff cited a cumulative inflation rate of about 24 percent between 2021 and 2025 — the highest since the early 1990s — increasing the cost of personnel, construction, health care and contracted services.

“Inflation has driven the cost up not only for consumers, but the county as well,” one presenter told commissioners.

Uncertainty at the federal and state levels could further complicate the process. Officials warned that a prolonged federal government shutdown or delays in adopting a new state budget could disrupt funding streams, even as the county remains obligated to provide mandated services.

Education continues to make up the largest share of the county’s budget at 29 percent, followed by public safety at 23 percent and human services at 22 percent.

Preliminary figures show education funding increasing by about $11.1 million under a new local funding formula tied to property and sales tax revenues, bringing total K-12 support to roughly $128.3 million.

Health and Human Services is also requesting about $6.1 million in additional funding and five new positions. Proposed roles include social workers for foster youths and adult services, two environmental health specialists to conduct inspections and a public health nurse for a mobile team previously supported by grant funding.

Department officials said expanded services, higher contract expenses, and the loss of temporary federal and state funding sources are driving rising costs. New and increased spending includes animal shelter operations, in-home assistance programs mandated by the state and expanded foster care support, along with funding for energy assistance staffing, guardianship services, aging programs and school nursing.

Commissioners questioned whether the requests would be sufficient to meet demand, particularly in social services, where needs have grown in recent years. Staff reiterated that the proposal reflects a scaled-back version of departmental requests.

Public safety accounts for the largest increase overall, with about $18 million in additional funding requested. The Buncombe County Sheriff’s Office represents roughly $11 million of that total, including funding for equipment upgrades, detention center operations and technology, along with two new positions.

Rising jail health care costs alone are projected to increase by about $1 million, driven in part by unpredictable outside medical expenses.

Emergency services officials are also seeking additional staffing and equipment, including positions tied to fire safety, emergency preparedness and community paramedicine. Some of those roles are currently funded through expiring federal pandemic relief dollars.

General government functions are requesting about $8.2 million in increases and 13 new positions, including roles in budgeting, finance, information technology and elections. Officials said technology upgrades, equipment replacement and rising software costs account for a significant share of the increase.

Additional spending is proposed for cultural and recreational services, including library staffing and early development of a new park at Deaverview Mountain, as well as economic and physical development initiatives such as new inspector positions and expanded code enforcement.

The proposal also includes $7.1 million in additional interfund transfers. Key items include $2.3 million for affordable housing, restoration of conservation easement funding to $750,000 and an $80,000 increase for early childhood education tied to a 2 percent escalator.

The county plans to allocate a portion of the required local match for a tourism-funded recreation grant, budgeting about one-third of the remaining $3.1 million obligation this year. Other transfers include $1.8 million for pay-as-you-go capital projects, $848,000 to accelerate the property reappraisal cycle and $434,000 to maintain current transit service levels.

Personnel costs are also increasing. A proposed 2.71 percent cost-of-living adjustment would add $4.8 million, while higher health insurance claims are expected to increase spending by $5.3 million. Retirement contributions are projected to rise by $1.4 million, along with about $638,000 in other personnel-related expenses.

Debt service is expected to increase by $11.7 million due to new bond issuances and ongoing capital projects, though officials noted prior refinancing efforts have helped limit current payments.

County staff emphasized that the figures remain preliminary and could change before a recommended budget is presented in May.

“This is still the first-pass budget,” staff told commissioners.