Proposed Johnston County Budget Supports Schools, Services While Keeping Tax Rate Unchanged

For immediate release:  May 18, 2026
 

Smithfield, N.C.  - County Manager Rick Hester on Monday proposed a 2026-27 budget that keeps Johnston’s property tax rate unchanged.

The proposed $421.9 million General Fund budget is up 2.2% over the current year but keeps the tax rate at 52 cents per $100 valuation. Hester also recommends keeping the Countywide fire tax rate unchanged at 11.5 cents per $100 valuation.

Some of the increase in spending stems from new debt payments, including the Clayton High School rebuild and portions of voter-approved bonds for Johnston County Public Schools and Johnston Community College.

“We’re also seeing continued pressure from rising health insurance costs,” Hester said.

To help balance the budget, Hester recommends taking $8.7 million from General Fund reserves. “But it’s possible we won’t need that money,” the County Manager said. “Historically, the County has annual savings from operations (job vacancies as an example of savings) which might allow us to keep most or all of that $8.7 million in reserves.”

Education funding remains a major component of the budget proposal. Hester includes $113 million for Johnston County Public Schools operations and another $3.5 million for school capital needs. Johnston Community College would receive just over $10 million for operations and $1.2 million for capital.

The proposed budget would pause requests for 28 new tax-funded positions across several County departments, including Emergency Services, 911 Communications, and the Sheriff’s Office. “However, I do recommend moving forward with four new positions in Public Utilities, since that department gets its funding from water and sewer customers, not taxpayers,” Hester said. “We would propose to begin filling those four positions in October.”

The proposal also includes increases in water and sewer rates, which County leaders plan to discuss in more detail during upcoming budget meetings.

“I’m also recommending an increase in the landfill tipping fee, from $48 to $50 per ton, while keeping convenience sites free for residents,” Hester said.

To help attract and retain employees, the budget includes funding for pay raises. “I’ll present a specific recommendation to the Board of Commissioners in the coming weeks,”  Hester said. “Also, in keeping with a pay study, I have included dollars for those cases where we need to raise salaries to remain competitive in the marketplace.”

Commissioners will continue budget discussions during meetings on June 1 and June 15. A public hearing on the proposed budget is scheduled for 10 a.m. June 1.

“Overall, this budget reflects our commitment to financial stewardship while continuing to meet the needs of a growing county,” Hester said.

He thanked Deputy Manager/Finance Director Chad McLamb and County staff members for their work preparing the proposed budget. “This budget proposal has truly been a team effort,” Hester said.