The Board of Supervisors today approved an FY 2026 Budget markup that eliminates the previously proposed 1.5-cent real estate tax rate increase and instead reduces the rate by a quarter-cent from the current $1.125 per $100 of assessed value, delivering targeted relief to homeowners while investing in key services and adopting a 4% food and beverage tax to broaden the county’s revenue base. The budget will be formally adopted May 13 and it takes effect July 1. The food and beverage tax will be effective Jan. 1.
“Amid national economic uncertainty, we are staying grounded in transparency and fiscal discipline while investing in what matters most to our residents,” said Board of Supervisors Chairman Jeff McKay. “This budget reflects our commitment to listening to the community — we’re restoring key programs and services in direct response to resident feedback and taking meaningful steps to diversify our revenue, easing the burden on property owners while maintaining the high quality of services Fairfax County is known for.”
Revenue Diversification to Reduce Reliance on Real Estate Taxes
To improve revenue stability and reduce the burden on property taxes, the FY 2026 Budget includes:
- 4% food and beverage tax to provide a new revenue stream without increasing property tax rates.
- 2% increase in the transient occupancy tax, raising it from 4% to 6%. One point of the increase is designated for tourism promotion. Visit Fairfax will develop a strategy for using the tourism-dedicated revenue, with recommendations expected this fall.
Community Voices Drive Middle School After-School Program Restoration
Following feedback from thousands of residents, the board restored full funding for the middle school after-school program for the 2025–26 school year. In partnership with Fairfax County Public Schools, the program offers students structured after-school enrichment. Staff are exploring long-term cost-reduction strategies, including fee-based options with sliding scales. A memorandum of understanding will outline shared responsibilities going forward.
Key Program Restorations
In addition to the middle school after school program, the board maintained or restored funding for several community-supported programs:
- Post-secondary education services for adults with developmental disabilities will continue through FY 2026 for currently enrolled families.
- Funding for Ambulance 416 in Clifton was fully restored, along with support for other emergency response units, to maintain coverage in geographically underserved areas and ensure timely emergency medical services countywide.
- The current crossing guards at high schools program will remain in place through FY 2026 while staffing alternatives are explored.
Support for Schools and Families
The markup package maintains the advertised FY 2026 transfer to Fairfax County Public Schools, providing a $118.6 million increase over the previous year. This amount is $149.7 million less than the School Board’s requested increase of $268.3 million.
Education continues to receive the largest share of general fund spending. The board reaffirmed its support for FCPS and encouraged the school system to align future transfer requests with economic conditions.
The board also directed the Department of Neighborhood and Community Services to include families currently enrolled in the Employees’ Child Care Center in developing cost-saving measures before contracting out this service. A progress report will be delivered at an upcoming Human Services Committee meeting.
County Workforce and Cost-Saving Initiatives
The FY 2026 Budget fully funds employee compensation plans and collective bargaining agreements for fire and police personnel. Looking ahead, the board expects continued attention to affordability and market competitiveness.
To prepare for FY 2027, agencies are directed to explore efficiencies, evaluate service models and participate in a new employee feedback portal for cost-saving ideas. Viable suggestions may be rewarded with stipends or additional leave.
Affordable Housing and Transportation
Affordable housing remains a core priority. The FY 2026 Budget dedicates $42.44 million, equal to 1.25 cents on the real estate tax rate, with a goal of reaching the 2-cent equivalent by FY 2027. The board also supports fast-tracking affordable developments and identifying one-time funding sources as needed.
On transportation, temporary state funding for FY 2025 and 2026 helped cover half of Virginia’s Metro share, allowing Fairfax County to maintain its general fund contribution. This support is not expected beyond FY 2026. The county may face increased Metro costs in FY 2027 without a long-term funding solution.
Investing in Parks
The FY 2026 Budget includes partial restoration of Fairfax County Park Authority funding for mowing, trail maintenance and support to the Fairfax County Park Foundation.
The board also directed that a successful recycling pilot be expanded to all maintenance areas beginning in the fiscal 2025 carryover review, with additional funds targeted for FY 2027. These investments support the county’s zero waste goals and environmental strategy. County and park authority staff will continue collaborating to align capital and operating needs and improve service flexibility.
Operational Improvements and Staffing Priorities
The board directed staff to work with the Office of the Public Defender to review how salary supplements are administered, including options for direct funding through the state Indigent Defense Commission.
To address deputy sheriff vacancies, staff will present recommendations to improve recruitment and retention, including operational adjustments and staffing models.
Police overtime was reduced by $1.7 million, reflecting improved staffing. Operational impacts will be monitored.
Navigating Economic Uncertainty
The board emphasized the unpredictable financial environment due to global instability and federal workforce reductions. To bolster financial resilience amid anticipated economic challenges, the budget allocates over $12 million to reserves, providing flexibility to address potential impacts from federal workforce reductions and broader fiscal uncertainties. Staff will provide more frequent revenue updates, and the county will continue working with the Economic Development Authority to track trends and communicate impacts.
Looking Ahead
The FY 2026 Budget markup and accompanying guidance ensure that the FY 2027 Budget process remains transparent, equitable and responsive to community needs even as the county faces economic headwinds.
For more information, visit the Department of Management and Budget.
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