Hanover County administrator proposes $781 million FY26 budget, holds tax rate at $0.81

Hanover County Administrator John A. Badesky on Feb. 26 presented his recommended fiscal year 2026 budget, a $781 million all‑funds plan that he said prioritizes public safety and public education while keeping the county real‑estate tax rate at 81 cents per $100 of assessed value.

Badesky said the general fund component would rise about 6.9 percent year over year and that the recommended budget includes a 3 percent merit increase for county and school employees. He told the Board of Supervisors the recommendation increases local funding for schools by roughly $9.8 million and boosts public‑safety spending by about $6 million, with a total of roughly $26 million in new money to allocate across priorities.

The recommendation keeps the county’s long‑standing low tax rate rather than “equalizing” after reassessments. Badesky said an equalization cut of two cents would have reduced available revenue by approximately $4.6 million and would have limited the county’s ability to fund the 3 percent merit and other proposed investments.

Why it matters: the administrator framed the budget as a balancing act between maintaining Hanover’s historically low tax burden and funding rising costs — especially for teachers, first responders and capital projects. Badesky called schools and public safety the two largest spending priorities: education was shown as about 35 percent of the proposed budget, public safety about 27 percent.

Key proposals and numbers - 3 percent merit increase recommended for county and school employees beginning July 1, 2025. - An additional local funding increase of about $9.8 million to the school operating budget; the overall school operating fund up about $15.7 million year over year. - $60 million estimate for a new consolidated Public Safety Building (revised up from earlier $52 million estimate). - $8.5 million proposed in FY26 to expand the Hanover Center for Trades and Technology. - New tourism department (2 positions) funded from lodging‑tax return revenue, not the general fund. - Capital program highlights: nearly $160 million in roads in the five‑year plan, continued funding for multiple school replacement and renovation projects, and additional investments in parks and convenience‑center upgrades.

Badesky described a continuing shift in funding toward local sources after state education funding has declined relative to local needs; he said the state’s share has dropped and localities are picking up a larger share of school costs. He also described the county’s fiscal policies, including reserves and bond ratings, noting Hanover retains a AAA bond rating.

Board reaction and process: supervisors asked clarifying questions about reassessments, the mechanics of equalization notices required by state law, and how the budget supports specific capital projects. Badesky said the board will hold additional work sessions and public hearings before an April 9 adoption vote; the public hearing on the proposed budget is scheduled during the advertised process.

Ending: Badesky concluded by noting this is his recommended budget and that the board may modify it before adoption. He emphasized that detailed line items will be available online for public review.

(Quotes and attributions are based on the county administrator’s presentation during the Feb. 26 meeting.)