McKay letter addresses casino bill

Fairfax County Board of Supervisors Chair Jeffrey McKay sent a letter to Virginia General Assembly leaders Jan. 27 outlining his perspective on legislation that would authorize a casino in Tysons.

Senate Bill 982, sponsored by Senate Majority Leader Scott Surovell (D-Mount Vernon), would allow Fairfax County to hold a referendum on whether a casino should be built in Fairfax County. The bill would restrict development of a casino to a location within a quarter of a mile of the Metro Silver line and would set other parameters limiting the site to Tysons.

McKay doesn’t say outright that he opposes the bill and doesn’t say whether the board should go through with a referendum if the bill passes it. He also doesn’t mention the other concerns raised by the No Casino Coalition, such as the threat of gambling addiction or the impact on the character of the community.

Noting that the casino proposal has generated significant community opposition, McKay says, “we believe the bill in its current form is likely to result in strong community opposition to any future referendum.”

Related story: Casino bill advances in the state Senate

Supporters of the casino bill point to the potential proceeds resulting in lower real estate taxes.  According to McKay, “The largest driver of real estate taxes is the more than half-billion-dollar deficit in state funding for K-12 education in Fairfax County.”

“If the state fully funded its obligations to Fairfax County Public Schools, the county would receive an additional $568.7 million, allowing us to lower the FY 2025 real estate tax by 17.5 cents,” the letter states. “This would in turn save homeowners an average of $1,300 on their tax bill.” Any new authority the General Assembly is considering granting the county “must be considered in this context.”

As a Dillon Rule state, McKay notes that “local governments are significantly restricted in their authority, which impedes their ability to react quickly and efficiently to emerging problems.”

“Fairfax County has not historically opposed legislation that provides local governments with a new option or authority, even if we do not intend to exercise that new option or authority,” he says. “Similarly, we do not seek or ask the General Assembly to provide a new authority unless we intend to seriously consider implementing such authority.”

McKay reiterates the statement made in his Jan. 26, 2024, letter on a similar casino bill proposed last year, that “Fairfax County did not seek authority and has not been substantively involved in the development of the casino concept envisioned by stakeholders and the patrons of SB 982.”

Under state law, less than 30 percent of the gaming revenue from a casino would go to the county, while over 70 percent would go to the commonwealth. “This is especially relevant given the fact that the location outlined in the bill has the potential to generate significant local tax revenue without a casino,” McKay says.

That seems to suggest that he might support a casino bill if the split could be negotiated in the county’s favor. That’s critical, as the county is facing a $300 million shortfall and one of the only options to balance the budget is an unpopular meals tax if the state doesn’t increase school funding.

Casino proponents say Tysons needs new development to offset the county’s declining office market due to the increase in remote work. McKay counters that argument by citing the thriving commercial developments close to the four Silver line Metro stations in Tysons.

“We are confident that Tysons is poised for continued success,” he says, “and will remain the economic engine of the commonwealth for decades to come.”