State and federal funding changes are putting new pressure on Guilford County’s finances, according to the county manager’s recommended budget for next year.
Budget documents say a cut in federal reimbursement for food assistance programs will cost the county about $3 million annually.
Officials also say legislative changes have increased local foster care costs. Under new rules, counties must cover a larger share of placement expenses after a child has been in care for more than two weeks. At the same time, the number of children in foster care is growing, and room-and-board costs have more than doubled over the past five years.
UNCG Political Science Professor Hunter Bacot says local governments across North Carolina are feeling the squeeze.
“The state wanting to cut taxes and pay less, well, the services don't change,” Bacot said. “In fact, the cost of the services continues to go up because of inflationary pressures. So it puts a lot of pressure on the counties to meet those obligations.”
Altogether, federal and state dollars make up about 10 percent of Guilford’s budget. To raise more money for county services, the manager is recommending a tax rate about 8 cents above the revenue-neutral level.