Burke County's mid-year financial snapshot looks good, but challenges are on the horizon
Burke County is on track to end the fiscal year with a $2 million surplus — but county leaders say rising costs and shifting federal policies could quickly tighten the budget.
Epley
County Manager Brian Epley recently presented a mid-year budget brief to share highlights, trends, and concerns with the board of commissioners.
“There are some things … that are reasons to be, I would say, optimistic,” Epley said. “And there are other things, much of which are out of our control, that we have to figure out how to navigate the storm.”
The good news is that revenues are growing faster than expenses, and the numbers show a major uptick in building permits, zoning permits, and plat reviews.
But challenges include rising retirement contributions, the number of high-cost claimants participating in the county’s health coverage, and the impending impact of the federal Big Beautiful Bill, which will shift a large portion of SNAP benefit coverage to county governments.
HIGHLIGHTS
In the first half of the 2025-26 fiscal year, revenues increased 6.7% (from $65.9 million to $70.3 million) while expenses increased 5.2% (from $50.2 million to $52.8 million).
The fiscal year is projected to end with a $2 million surplus, which will help the county reach its 25% fund balance goal.
Fund balance means “looking at your expenditures as a percentage of your total revenue,” Epley said, which is a good measure of efficiency and “how cost-effective you’re able to operate.”
The Local Government Commission (LGC) recommends maintaining a fund balance above 8%, which in theory covers one month of a government’s operating expenses.
Burke County officials set the goal of maintaining a 25% fund balance several years ago. The county was able to stick with it until last year, when $11.5 million was pulled out of the fund balance to address the damage from Hurricane Helene.
As a result, the 2024-25 fiscal year ended with a 17.9% fund balance. Had the disaster not struck, the county may have had a 28.5% fund balance, Epley said.
The number of permits and plat reviews is a macroeconomic indicator, Epley said.
“We’ve seen the single highest number of permitting in recent Burke County history,” Epley said. “Plat reviews are through the roof.”
Building permits increased 23% with 2,283 permits in 2024 to 2,813 in 2025. Zoning permits saw a 10% jump, going from 1,268 to 1,397.
Permits to build single-family homes increased significantly at 60%, going from 251 to 401.
Plat reviews saw the biggest jump with a whopping 94% increase. In 2024, there were 69 plat reviews. In 2025, there were 134.
CHALLENGES
Every county will soon feel the effect of the Big Beautiful Bill, shifting the weight of SNAP benefits onto local governments’ shoulders.
“Food and nutrition administrative reimbursement is going from 50% to 25% beginning in October 2026,” Epley said. “That’s going to cost us an immediate half a million dollars ($500,000), growing to $650,000 in year two.”
The North Carolina Department of State Treasurer increased retirement contributions by 1% for the fourth or fifth year in a row, Epley said. One percent on a $40 million payroll is about $400,000, he said.
“If it wasn’t for strong, local economic policy, and if it wasn’t for strong budget actual management, if it wasn’t for strong policy on trying to re-engineer costs and be more efficient, we would be in a really difficult spot,” Epley said.
Medical inflation has also trended at 10 to 11%, Epley said, which “on a $9 million wellness fund is significant.”
Epley said the employee wellness fund is putting pressure on the budget with 15 high-cost claimants accounting for about 28% of total claims. This has the county’s self-funded health plan operating at 113% of expected funding levels.
Epley said the employees are dealing with major health issues.
“Certainly, we’re praying for the folks that are going through it, but from an economic perspective, it is significantly tough to manage.”
