Fairfax County released its proposed fiscal year 2026 budget this week. It includes significant tax increases and spending cuts of nearly $60 million.
County Executive Bryan Hill delivered the budget on Tuesday. He said that it includes the most significant cost-cutting effort since 2010, when more than $90 million was cut following the Great Recession.
“I don’t think anybody is happy with this budget, but this is where we are,” Hill said. “We have been working diligently to figure out how to make this mildly palatable, to find the right balance.”
Tax Increases, Job Cuts
The budget includes a 1.5-cent real estate tax increase, which would bring the rate to $1.14 per $100 of assessed value. The bump is projected to generate $50 million for essential services. Additionally, a 2 percent increase in the transient occupancy tax is expected to raise $13 million.
It also includes a food and beverage tax consideration. Hill said a proposed 4 percent increase could generate $65 million and potentially offset real estate taxes.
The proposed budget would also eliminate 200 county government positions, more than 100 of which are currently vacant. Hill said workers whose jobs are slated for elimination would be offered alternative county positions, if possible.
Federal Worker Layoffs
Hill said that the budget was crated before President Donald Trump took office last month. But he noted that it is was released at a time of economic uncertainty in the region due to the current administration’s efforts to reduce the federal workforce.
“Fairfax County is home to more than 50,000 federal workers, and even more workers connected to businesses that contract with the federal government. Already, we are seeing workers being laid off or furloughed in the greater Washington area, with threats of significant layoffs of federal workers and terminations of federal leases. The broader economic impacts of some of the president’s actions have yet to be realized,” Hill said.
Public Input
Residents are encouraged to provide input through public hearings and community discussions before the budget is finalized. Public hearings are scheduled for Tuesday through Thursday, April 22 to 24. You can also email [email protected] or call 703-890-5898, code 7574.
The final budget adoption date is set for May 13.
Feature image courtesy B Christopher/Alamy Stock Photo
