CHARLOTTE, N.C. — Mecklenburg County leaders are deciding how to spend billions of taxpayer dollars for next year's budget.
Wednesday kicked off the Board of County Commissioners' annual budget retreat where they heard from the county economist and researchers on the state of the local economy and where it's headed.
Staff and commissioners will be working over the next several days to decide what to prioritize in the Fiscal Year 2024 budget while also being updated on how funding for the current fiscal year is going.
Mecklenburg County's budget for Fiscal Year 2023 is $2.2 billion. It's unclear what next year's budget will be, but it will likely be slightly higher than the current one.
According to county economist Brandon Simmons, Mecklenburg County's workforce is doing great, adding 32,000 jobs in just the third quarter of 2022.
However, the growth in population and business also means the cost of living is rising.
Strategic Planning and Evaluation Director Dr. Monica Allen noted that higher prices are causing displacement issues. She added most people leaving Mecklenburg County are moving to the surrounding counties, mainly because they’re more affordable.
Out of the 100 largest U.S. cities, Simmons reported Charlotte ranks 43rd in median apartment rent price at $1,491 a month. That’s higher than Raleigh and the national average of $1,344.
When it comes to home buying, Simmons said prices are still high but are coming down slightly because the market is cooling off a bit. For example, over the summer, homes were selling in an average of 12 days in the Charlotte area. Now, homes are selling in an average of 42 days.
“I think it’s good, some people might not think so, that the time on the market for houses has increased because that will in turn bring down that cost of housing for our community," board chair George Dunlap said. "Maybe more people who have houses will be willing to sell for less, which makes homeownership more attainable.”
Looking ahead, Simmons predicts a mild recession. He said the Charlotte area is already seeing a gradual slowdown of the local economy.
He expects home prices to continue to decrease in 2023 due to a drop in demand, but the market is still competitive due to low inventory.
"Overall economic activity will weaken around mid-year possibly heading into a mild recession or zero growth scenario," Simmons predicted.
Allen recommended that commissioners prioritize affordable housing projects and efforts to build more houses in the upcoming budget.
She also suggested bolstering county programs for rental assistance and low-income families. To help workers deal with inflation, she asked the county to push for raising the minimum wage at the state level.
A new budget item expected for the upcoming fiscal year is a plan to spend $5 million to combat racial inequities in the county.
A committee of county commissioners is working on a plan to address racial disparities in communities. They plan to use the funding that will help give more people fair opportunities for things like jobs and health care.
Commissioner Mark Jerrell shared they hope to have the plan finalized by the spring of 2023. It will lay out specific strategies on how the Office of Equity and Inclusion should spend the money.
The office is already working to address racial inequities by educating government employees on the issue. Director LaShaun Carter said they are currently conducting an analysis to find disparities within county departments and programs.
Contact Julia Kauffman at jkauffman@wcnc.com and follow her on Facebook, Twitter and Instagram.