Budget staff recommend one-time third‑quarter package; $8 million one‑time balance remains

Budget staff on March 25 presented the Fairfax County FY2025 third‑quarter review and recommended a package of one‑time spending and budget adjustments that leaves a one‑time balance of just over $8 million.

Phil Hagen, a budget staff member, told the Budget Committee that the third‑quarter package recommends $9 million in additional revenue estimates and a net increase of about $26.57 million in expenditures and contributions to reserves totaling $2.37 million. “This package does recommend adding 30 new merit positions, but there is no recurring funding required to support those positions,” Hagen said.

The nut graf: the recommendations are largely one‑time and focused on capital renewal, information technology, parks and vehicle replacement; staff recommended preserving remaining funds in reserve to guard against economic uncertainty.

The presentation said the county begins the third quarter with a general fund balance of about $28 million, of which roughly $26.4 million reflected revenue increases identified at midyear. Staff identified roughly $35.4 million in revenue increases since carryover (including a $20.6 million figure identified last fall and $9 million in the current package); nearly half of the increase was from investment interest, plus gains in business/professional/occupational license receipts, deed/recordation taxes and delinquent personal property collections. The county’s ARPA allocation was noted: of about $222 million received, roughly $21 million remained unspent but already allocated and must be spent by December 2026.

Staff recommended $20.32 million in capital investments tied to facility infrastructure replacement and upgrades (about $14 million for roofs, emergency building envelope repairs and parking facilities), $4 million for space realignment to reduce leased space, and $2 million toward build‑out costs for a temporary Criminal Justice Academy lease. IT funding was the second largest recommended category at $8.87 million, including $8.45 million for IT projects and $410,000 for software licenses for personal property tax forecasting and Park Authority recruitment/development software.

Parks would receive a recommended $5 million tranche for recreation centers consistent with prior board support. Staff also recommended $300,000 for contract security expenses at meetings and large events, and increased vehicle‑replacement funding tied to the county’s transition to hybrid and electric vehicles as well as changes in police vehicle types. The package includes a $5.55 million contribution to the county’s OPEB (other post‑employment benefits) trust driven by higher retiree prescription drug claims and related actuarial adjustments.

The presentation includes startup operational funding—three quarters of a million dollars—for the Fair Ridge Family Shelter (anticipated April–June operational costs) and $350,000 for a multimodal transportation study in the Fair Lakes area. Volunteer Fairfax was recommended for $100,000 in one‑time support after the nonprofit’s recent shortfall; staff said they will work closely with Volunteer Fairfax on FY2026 sustainability.

Hagen said the package recommends adding 30 positions: three merit positions for the Park Authority (supported by board‑approved funding for equity initiatives) and 27 Community Services Board positions proposed to be converted from non‑merit to merit and paid with state funds intended to stabilize CSB compensation and workforce.

On savings, staff identified a little over $17 million in savings across fringe benefits and general fund agencies based on current spending patterns; Christina Jackson, the county’s chief financial officer, said similar quarterly reviews typically leave $3–$5 million but that last year’s third quarter left $5.24 million after recommendations. Jackson and staff recommended holding remaining one‑time funds as a reserve given uncertainty about potential federal actions and local economic impacts.

Supervisors pressed staff for follow‑up details. Supervisor Walkenshaw requested a timeline and next steps for the vehicle replacement analysis; staff said the analysis is underway and a meeting on that topic was scheduled next week. Staff agreed to include a tally of any realized fuel and maintenance savings from vehicles already converted to electric in future analysis. Supervisor Alcorn asked for narrative detail behind the $17.2 million in identified savings (drivers such as vacancies or timing) and staff agreed to expand the Q&A materials with by‑agency breakdown and explanatory narrative.

Staff said the Fairfax County Public Schools (FCPS) third‑quarter review will be published March 27 and will be forwarded to the board for consideration. Public hearings on the county third‑quarter review will be scheduled concurrent with FY2026 budget hearings in April and board action is planned prior to budget markup on May 6.

Ending: staff presented the items for committee questions; no formal board action occurred at the March 25 meeting. The third‑quarter package and individual budget items remain staff recommendations pending public hearings and formal board action in May.