CHAPEL HILL - Orange County Manager Frank Clifton has proposed a no-tax increase budget that gives a pay raise to employees but less money to the school systems than they asked for.

The $178 million budget is $4.8 million less than this fiscal year’s amended budget and would keep the property tax rate at 85.8 cents per $100 of assessed value, or $2,574 in county taxes on a $300,000 house.

Sales tax revenue in the county has increased by 3 percent, and there’s also been a slight growth in property tax revenues due to new construction, Clifton said Tuesday afternoon. Property taxes make up 77 percent of the general fund budget.

“There’s very little revenue growth in the budget ... and we recognize that in general the economy is still fairly flat in the area,” he said. “But [we] see some positive trends starting to form which we hope will improve next year’s opportunities.”

Both the Chapel Hill-Carrboro City Schools and Orange County school districts asked for more money this year to offset state cuts, fund an increase in student enrollment and update school buildings.

The districts asked for $68.9 million for the next fiscal year; Clifton is recommending $65.6 million. The budget covers the growing number of students, but any additional county funding would require a tax increase, Clifton said. Commissioners may already put a half-cent sales tax referendum to voters in November to fund a regional transit plan.

The budget also includes

• A 3 percent pay increase for staff, half as a cost of living adjustment, half performance-based

• $926,700 in nonprofit funding

• An increase in solid waste fees for property owners, $10 increase for rural residents, $5 increase for urban residents

• An increase in EMS positions for paramedics and telecommunicators staggered throughout the year

The county currently has a study group working on EMS issues; the department has asked for more money to add employees and update its technology to reduce its response time.

Commissioners are scheduled to approve a budget before their last meeting of the fiscal year on June 19.