Falls Church leaders present FY 2026 budgets as enrollment and development rise

Falls Church City and the Falls Church City School Board presented their proposed fiscal year 2026 budgets at the March 24 City Council meeting, telling council members the requests are needs-based and align with the council'provided guidance while responding to rising student enrollment and demographic shifts.

The school board's advertised request meets the council's December guidance of a 5.9% local funding increase, and the board emphasized that increased enrollment and growth in students requiring services are the principal drivers. "This process started for us back in August," Tate Gould, chair of the Falls Church City School Board, said as he opened the board's presentation, noting the budget was built with input from staff, principals and teachers.

Why it matters: The schools reported overall enrollment at the highest levels in years, exceeding projections by 32 students as of late March and driving requests for additional classroom teachers, specialty staff and supports for students with English-language needs and other services. Council and staff said the city and schools have a multi-year revenue-sharing practice that the presenters credited with enabling predictable planning.

School budget details: The schools described a roughly $4.6 million increase in their operating budget compared with FY 2025, with most new dollars going to salary and benefits. The board said $3.3 million would cover contractual obligations including step increases and a 2.5% cost-of-living adjustment under its collective bargaining agreement; the board anticipates an overall average 5% increase in compensation for school employees, combining COLA and step changes. The board also plans to use a mix of funding sources and to convert some time-limited federal positions to permanent roles where student need is sustained.

Enrollment and services: The presentation showed the district's enrollment is up across several student categories, including an increase of roughly 45 students identified as English learners and a rise in economically disadvantaged students. School leaders said those cohorts typically require additional staff or services such as resource teachers, paraprofessionals and expanded transportation. The board highlighted targeted changes to summer-school programming aimed at improving efficiency and focus on students with greatest need.

City budget and tax-rate proposal: City Manager Wyatt Shields presented the proposed FY 2026 general fund budget and a recommended real-estate tax-rate reduction of 2.5 cents to $1.185 per $100 of assessed value, a move made possible by a 10.5% increase in overall assessed value (about half from new construction). Shields described the budget theme as "sustaining momentum together," listing priorities that include workforce compensation, safety investments and increased roadway maintenance. The proposed budget funds a 5% merit increase for city staff and aligns the city's general-government compensation approach with the schools.

Capital and reserves: The city manager said the six-year capital improvements program totals about $148 million and relies on a mix of debt, federal and state grants and capital reserves; no new general-fund-supported debt is planned until FY 2028. The budget keeps a multi-million-dollar unassigned fund balance as a reserve for economic shocks and includes a $500,000 contingency line to address uncertainty in the region's economic outlook.

Council discussion: Councilmembers questioned school and city staff about enrollment projections, how new multifamily development (including the West End/Founders Row projects) is reflected in student forecasts, and how federal funding changes could affect programs. School and city leaders said the district has incorporated West End and other known development into its forecast; the schools plan to monitor enrollment weekly ahead of the April official count. Councilmembers also asked for a variety of follow-up data requests: (1) a breakdown of the most recent enrollment increases by housing type (single-family vs. multifamily), (2) comparisons of tax bills with neighboring jurisdictions, and (3) historical context on staffing and budget growth.

What happens next: The council's budget calendar calls for public engagement and a series of work sessions: a budget town hall April 3, deep-dive CIP discussion April 7, and a revenue forecast session April 11. Formal ordinance readings and final budget adoption are scheduled in May. Staff said a running Q&A and updated budget packet materials will be provided to council before upcoming work sessions.

Ending: Council members thanked school and city staff for the presentations and for the multi-year cooperation that they said made it possible to present budgets aligned with guidance. The City Manager and school leaders emphasized the proposals are subject to council deliberation and public input over the coming weeks.