Chesterfield officials present cautious FY26 budget with 1¢ real-estate cut and expanded tax relief

Chesterfield County budget staff presented a proposed fiscal 2026 operating and capital plan that trims the real‑estate tax rate by one cent to $0.89, projects $43.8 million in additional general‑fund revenue (roughly 4.4%) and directs the bulk of new ongoing funding to the school division, public safety annualizations and expanded tax‑relief programs.

The proposal emphasizes restraint in the face of national and local economic uncertainty, reduces planned use of reserves, delays many new hires and limits new initiatives. The board is scheduled to vote on the FY26 budget on April 9, with public hearings and community meetings preceding adoption.

County presenters told the board the national economy has shifted from “slowdown” to pronounced uncertainty over recent weeks, citing indicators such as slipping job openings, rising consumer delinquencies and a rapid change in short‑term GDP forecasts. Budget staff said those signals informed a more conservative revenue forecast and a plan that preserves flexibility into the fiscal year.

Under the proposal the general fund would increase about 4.4% year over year. The staff said roughly 82% of that increase is absorbed by three items: a net transfer to schools, annualization of public‑safety pay and staffing increases that took effect in January (about $17.1 million), and expanded tax‑relief programs (about $5 million additional for the senior/veteran relief program). The presentation noted the county will annualize a prior 7.2% public‑safety compensation action and carry forward merit and step pay commitments.

The presenta…