Fairfax County Schools review $120M funding gap and carryover policies for fiscal planning

The Fairfax County Public Schools (FCPS) Budget Committee convened on May 20, 2025, to discuss critical financial matters affecting the school district's budget for the upcoming fiscal year. A significant focus of the meeting was on the management of carryover funds from previous fiscal years and the implications for future budgeting.

During the meeting, Miss Burden highlighted that all department carryover funds are discretionary and depend on requests made at the end of the fiscal year. The committee noted that certain items, such as encumbrances and multi-year projects, are automatically carried over. For instance, $20.8 million was encumbered for Language Arts adoptions, and an additional $32 million was allocated for multi-year projects in social studies and math, contributing to a total of approximately $62 million in carryover funds.

However, the committee expressed concerns about the future availability of these funds. It was indicated that due to successful recruitment efforts, the amount of funds available for department carryovers in fiscal year 2026 is expected to be significantly lower, potentially less than 10%. This change is anticipated as the district aims to manage its budget more tightly.

The discussion also touched on the nature of one-time funding, which is limited in its application. Superintendent Dr. Reid emphasized that while one-time funds can be used for specific purchases or initiatives, they do not provide a sustainable financial solution for ongoing expenses. The committee acknowledged that many current programs, including after-school initiatives, rely on one-time funding, which poses challenges for long-term planning.

Additionally, the committee addressed the ongoing issue of underfunding, with a reported budget gap of $120 million. Dr. Reid noted the importance of advocacy for increased funding from state and county sources to maintain class sizes and educational support. The committee recognized that without full funding, difficult choices would need to be made in future budgets.

The meeting concluded with discussions about the district's healthcare plan and the ongoing search for a new insurance provider, aimed at achieving cost savings and better coverage for employees. The selection process for a new healthcare provider is expected to conclude within the next month.

Overall, the FCPS Budget Committee meeting underscored the challenges of managing carryover funds, the implications of one-time funding, and the pressing need for advocacy to address significant budget shortfalls in the coming years.