ASHEVILLE, N.C. (828newsNOW) — Buncombe County leaders are weighing a proposed fiscal 2027 budget that officials say reflects continued inflation pressures, rising public safety and human services costs, and increasing shifts of state and federal expenses onto local taxpayers.

During a budget workshop Thursday, county staff outlined a first-pass plan that would increase the general fund budget by roughly 15 percent over the prior year’s amended budget, driven largely by personnel costs, health care claims, capital needs and mandated service expansions.

County officials said the proposal comes as the region continues to experience elevated inflation, with a five-year cumulative rate at its highest level since 1991, alongside uncertainty in federal and state funding streams.

“Inflation has driven the cost of not only for consumers, but the county as well,” one staff member said during the session, pointing to rising expenses in staffing, healthcare, construction and contracted services.

Community investments, transfers highlighted

A key component of the proposal includes about $7.1 million in interfund transfers tied to community investments and long-term obligations.

The plan restores $2.3 million in affordable housing funding that was not included in the prior year’s budget and increases conservation easement funding by $500,000 to return it to $750,000 annually. It also includes an $80,000 increase for early childhood education funding and a $434,000 increase to maintain transportation services.

Officials also outlined a $3.1 million commitment tied to a state tourism development authority grant for the Anchor Recreation Destination project, which includes sports field development.

Another $1.8 million in “pay-go” capital funding would support cash-financed infrastructure projects, while nearly $850,000 would go toward the county’s accelerated property reappraisal cycle.

Health and human services sees $6.1M increase

The Health and Human Services department would see a $6.1 million increase under the proposal, including five new positions and expanded program costs.

New positions include social workers for foster care and adult services, two environmental health specialists and a public health nurse previously funded through grants.

Operating increases include a $311,000 increase for a state-mandated in-home assistance program, $221,000 more for animal shelter services and $82,000 for emergency foster care placements that officials said were previously covered by temporary state funding.

County officials said many of the increases reflect expiring grants and shifts in state cost-sharing rather than entirely new programs.

Some commissioners questioned whether the increases represented short-term gaps or ongoing structural costs.

“It’s a variety of things,” a staff member said, noting that some services are now being shifted from state to local funding while others reflect rising demand in aging and child welfare services.

Public safety and staffing pressures continue

Public safety remains one of the largest drivers of budget growth, with millions in new requests tied to the sheriff’s office, emergency services and IT support.

The sheriff’s office accounts for the largest share of new requests, including funding for equipment, jail health care cost increases, vehicles and technology systems. Officials said jail health costs alone could increase by about $1 million because of medical service contracts and unpredictable outside hospital care.

Emergency services would also see increases tied to staffing, equipment leases and expanded contracted security at county facilities, totaling nearly $890,000.

Personnel costs and healthcare claims increase

Countywide personnel costs are projected to increase significantly because of a 2.71 percent cost-of-living adjustment, higher retirement contribution requirements and rising health insurance claims.

Officials said health care costs alone are increasing by more than $5 million, driven by higher claims activity across the self-insured system.

“We’re seeing claims up across the board,” staff said, adding that the county is working with consultants to evaluate regional and national trends.

Air quality agency transition proposed

County leaders also discussed a proposal to bring the Asheville-Buncombe Air Quality Agency under county control, citing declining federal funding and reduced fee revenue.

Staff recommended transitioning the agency into a county division within the permits and inspections department, with an estimated $350,000 annual operating impact.

Officials said the change would preserve local air monitoring, permitting and compliance programs while avoiding potential staffing cuts or closure under the current structure.

Commissioners expressed support for maintaining local oversight of air quality programs.

Capital projects and debt increase

The proposal includes about $38.3 million in capital projects, ranging from emergency services facilities and library upgrades to parks development and detention center improvements.

County debt service is projected to increase to about $30.1 million under new bond issuances, up from $18.3 million in the current year, before gradually declining in later years.

Fleet replacement alone accounts for about $4.2 million, including 54 vehicles across multiple departments.

Next steps

County officials will return later this month with updated revenue projections and additional budget details, including health care cost analysis and fee schedule changes.

A recommended budget is expected May 5, followed by a public hearing May 19 and final adoption June 2.