Revised county budget drops tax increases

The Fairfax County Government Center

Fairfax County Executive Bryan Hill submitted a revised FY2021 budget proposal to the Board of Supervisors April 7 that addresses the economic losses and hardships resulting from the COVID-19 pandemic.

In a major change from the advertised budget presented by Hill in February, the new version would not increase the real estate tax rate and would not set a new 4 percent admissions tax.

The revised budget would set aside $9.84 million to combat the health and economic impacts of COVID-19. Those funds could be used for the Health Department and to support those most harmed by the pandemic, including small businesses and nonprofits.

Related story: Tax increase would fund county priorities

Under the revised plan, the amount of funds transferred to Fairfax County Public Schools would be increased just 0.32 percent over the 2020 adopted budget. The previous budget proposal would have increased school funding by 3.65 percent. As a result, FCPS would receive a $7.3 million increase in transfer funds rather than an $85.5 million increase.

When the FY2021 advertised budget plan was presented, “little did we suspect, at the time, that the COVID-19 pandemic could so quickly and significantly change the economic outlook – not only for Fairfax County – but across the country and the world,” Hill states.

In addition to eliminating all proposed tax rate and fee increases “to alleviate pressure on the county’s taxpayers,” Hill says, “spending adjustments have been refocused on essential services only, which includes the elimination of compensation increases” for county employees.

Other priorities reflected in the earlier budget – including affordable housing, early childhood education, the expansion of library hours, environmental investments, and cultural and arts activities – “remain our priorities,” Hill says, but the revised budget can no longer support them.

Related story: Fairfax County expects huge revenue losses due to coronavirus

“This updated budget proposal focuses on only those items that are critical to maintaining the health and safety of our residents and the continued function of essential services.” Hill says.

The budget would increase funding for the Health Department and school health programs to address the coronavirus pandemic, the Consolidated Community Funding Pool, coordination of services for people with developmental disabilities, and information technology upgrades to support the upcoming elections.

Spending increases for just about everything else will be deferred, including funding for the new South County Police Station and Scotts Run Fire Station and funding to fight the opioid epidemic.

Public hearings have been postponed to April 28-30. Instead of testifying in person, members of the public can submit testimony via video, phone, and online.