Fairfax officials propose FY2026 budget that would raise real‑estate rate, fund negotiated pay increases and hold potential meals tax discussion

Fairfax County and Fairfax County Public Schools on Feb. 25 released their advertised FY2026 budgets, proposing a 1.5‑cent increase in the real‑estate tax rate to $1.14 per $100 of assessed value, new and held increases in hospitality taxes, and funding to fully pay negotiated compensation increases for public‑safety employees and school staff.

The county presentation said the 1.5‑cent real‑estate increase would generate about $51,000,000; officials also proposed adding another quarter‑penny dedicated to affordable housing (bringing affordable‑housing dedication to 1.25 pennies). The county proposal would raise the current rate to $1.14 and, officials said, would result in an average tax‑bill increase of about $638 for homeowners.

Why it matters: the advertised budgets try to balance rising personnel costs — including fully funding collective bargaining for public‑safety employees and negotiated school compensation — with shrinking revenues in some categories and growing uncertainty about federal support that schools and county programs now rely on.

County officials told the joint committee that most of the revenue growth driving the proposal comes from real estate: the county’s tax base is projected to grow 5.34% for FY2026, driven by residential equalization of 6.17%; residential property now represents about 78% of the county real‑estate base. At the same time, commercial equalization continues to soften and “office elevator” property values are down, the presenters said.

Christina Jackson, Fairfax County chief financial officer, summarized the county package and the offsets included to cover other priorities: “This budget does share available revenue proportionally with the schools,” she said, and it includes funding for compensation programs, contract adjustments, IT…