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Buncombe County projects a $20 million budget shortfall, implements hiring freeze and other cuts

The Buncombe County Board of Commissioners meet every first and third Tuesday at 200 College Street.
BPR News
The Buncombe County Board of Commissioners meet every first and third Tuesday at 200 College Street.

When Buncombe County adopted this year’s budget back in June, a catastrophic weather event like Hurricane Helene was not part of the plan.

As part of the fallout from Helene, the county’s municipal budget faces a projected $20 million shortfall. The overall budget totals $628 million.

Commissioners met with the Asheville City School Board and Buncombe County School Board in a special meeting on Thursday to discuss new cost-cutting measures that the county has put into place.

Commission Chair Amanda Edwards acknowledged that it was a tough conversation.

“The commissioners and the county staff recognize these are hard decisions that have to be made on a quick turnaround,” she said.

The county is projecting losses from all five of its revenue sources, Budget Manager John Hudson shared in a presentation. To fund government programs and services, Buncombe primarily relies on property tax and sales tax revenue, which were both heavily impacted by Helene.

A steep dropoff in new construction activity hindered property taxes, according to Hudson. A decline in commerce and tourism hurt sales tax income.

An estimated budget deficit from a Buncombe County presentation on Thursday.
Screenshot from Buncombe County
An estimated budget deficit from a Buncombe County presentation on Thursday.

In order to balance the budget, county leaders say they’ve rolled out a slew of budget reductions, including:

  • Hiring freezes and salary budget reductions - $4.2 million in savings
  • Cutting programming for public health, social work and economic services - $2.5 million in savings
  • Deferred maintenance on county facilities, reduced library hours and other operational cuts - $5.1 million in savings
  • Reductions in tax reappraisal funding, conservation easements and early childhood education funding - $1 million in savings
  • Cutting funding for Asheville City Schools and Buncombe County Schools by 4% - $4.8 million 

In total, this approach reduces spending by $17.6 million. Leaders plan to fill the gap by using $2.4 million from the county’s savings or fund balance. Even with the dip into savings, Buncombe’s fund balance would stay above the gold standard of 15% of municipal spending.

READ MORE: Buncombe budget primer: How the county spends more than $600 million

Hudson described the plan as “fiscally cautious” and emphasized the need for these reductions to be made “sooner than later” to avoid county departments spending at the previously-authorized levels.

Commissioner Al Whitesides expressed gratitude for the county’s plan, especially for maintaining the fund balance above 15%. If the fund balance dips below that level, it could end up costing the county more in the future, he explained.

“We have a AAA bond rating and what a lot of people don't realize is that rating is important for us and for the taxpayers because it saves us money when we go and borrow,” he said.

“So don't think we're just hoarding money. It's the correct way to do it. We've got to stay fiscally sound through this process.”

What next?

Hiring freezes and operational reductions have already occurred. In presenting to commissioners, Hudson said most budget changes can be implemented without elected leaders needing to vote.

However, one recommended budget reduction does require a formal process. Per state law, commissioners must vote on reducing the education budget and a public school board meeting will be required. A vote is scheduled to take place at the commission’s Jan. 21 meeting.

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Laura Hackett joined Blue Ridge Public Radio in June 2023. Originally from Florida, she moved to Asheville more than six years ago and in that time has worked as a writer, journalist, and content creator for organizations like AVLtoday, Mountain Xpress, and the Asheville Area Chamber of Commerce. She has a degree in creative writing from Florida Southern College, and in 2023, she completed the Craig Newmark Graduate School of Journalism at CUNY's Product Immersion for Small Newsrooms program. In her free time, she loves exploring the city by bike, testing out new restaurants, and hanging out with her dog Iroh at French Broad River Park.
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