Fairfax County Board of Supervisors Adopts Fiscal Year 2004 Budget
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April 28, 2003
Fairfax County Board of Supervisors
Adopts Fiscal Year 2004 Budget with 5 Cent Tax Cut
On April 28, 2003, the Fairfax County Board of Supervisors formally adopted the fiscal year 2004 budget, which begins July 1, 2003. The fiscal year 2004 budget is balanced and includes General Fund disbursements of $2.56 billion, an increase of $69.02 million or 2.77 percent over the fiscal year 2003 revised budget plan. This includes General Fund Direct Expenditures of $946.89 million, which is a decrease of $8.05 million or 0.84 percent from the fiscal year 2003 estimate.
The budget calls for reducing the real estate tax rate from $1.21 per $100 of assessed value to $1.16 per $100 of assessed value. This is the second consecutive year of tax rate decreases and represents a cumulative decrease of 7 cents.
The total increase in the fiscal year 2004 budget over the fiscal year 2003 level is allocated to the Fairfax County Public Schools. The transfer to FCPS for operations and debt service totals $1.359 billion, an increase of $76.9 million over fiscal year 2003. In addition, county funding of FCPS will increase to 53.1 percent of Total General Fund Disbursements, the highest percentage in 20 years.
In order to provide that level of funding for FCPS and affect a 5-cent real estate tax rate reduction, it was necessary to reduce county expenditures by $51.3 million and increase revenue by $8.2 million. As part of an effort to diversify county revenue from an over-reliance on the real estate tax, a cellular phone tax at a rate of 10 percent with a maximum of $3 per month will be implemented, as well as a $40 non-residential use permit fee. In addition, the E-911 fee will be increased from $1.75 to $2.50 per line per month. The maximum allowable under state code is $3 per line per month.
In adopting the budget, the board also approved Budget Guidelines (see attached) with both general and specific guidance for the development of the fiscal year 2005 budget. Information on the fiscal year 2004 Budget Plan, including revisions made during the April 21 Budget Markup session, is available by calling the Department of Management and Budget at 703-324-2391, TTY 711 (Virginia Relay Center) and on the county’s Web site at www.fairfaxcounty.gov/dmb.