Fairfax staff outline effects of governor’s 2024–26 budget amendments on county services and FCPS

The Fairfax County Legislative Committee received an overview Friday of the governor’s December amendments to the Commonwealth’s 2024–26 biennium budget and what those changes would likely mean for Fairfax County and Fairfax County Public Schools (FCPS).

Claudia Arco, legislative staff, and Albano of the Senate Budget Office walked board members through the governor’s assumptions and specific line items. The governor’s package assumes stronger revenue growth—about 4.1% in fiscal 2025 and 2.6% in fiscal 2026—adding roughly $4.7 billion in general fund resources over the biennium, but it does not increase most compensation items and leaves some Fairfax priorities only partially funded.

Why it matters: Fairfax officials said several proposed additions would not meaningfully benefit the county and that FCPS remains exposed to a potential shortfall if the governor’s package were adopted as written.

The county’s briefing noted the governor did not add funding to address recommendations from the Joint Legislative Audit and Review Commission (JLARC) on school funding. FCPS would receive no additional funding for the JLARC recommendations in the governor’s amendments, and staff said eliminating the local ‘support cap’ — a JLARC priority — would yield almost $45 million for FCPS if adopted. The governor’s budget includes limited compensation funding for schools: a 3% salary increase is funded only in part, covering about $18.2 million of an estimated $91 million cost to FCPS, leaving an estimated net local cost of roughly $73 million.

On public safety, staff said the governor proposes $2.5 million to help localities buy radio and communications equipment and $5 million for protective equipment for firefighters, but those awards are prioritized to localities with above-average fiscal stress, which likely excludes Fairfax. The proposed $3.5 million to reimburse law-enforcement time spent transporting individuals under temporary detention orders similarly prioritizes other localities and therefore likely will not offset Fairfax County Police Department costs; staff estimate the county spends more than $500,000 annually on that function.

The governor’s package includes a $1.1 billion refundable car tax credit (to be paid from the fiscal 2025 surplus) and makes the standard deduction amounts permanent; staff said these tax changes will affect state revenue but do not directly change county revenue flows. The budget also proposes ending state income tax on TIPS income, reducing projected revenue by about $35 million in FY2026 (half-year) and $70 million annually thereafter.

County leaders flagged a potential gap for FCPS: compared with FCPS’s internal fiscal forecast, the governor’s amendments would reduce the projected state support by about $600,000 in FY2026, creating a modest shortfall if the governor’s plan were enacted without other adjustments. Board members discussed opportunities to engage the General Assembly on items that affect long-distance transport reimbursements and the state’s treatment of law-enforcement funding (the HB 599 program). They also noted supplemental pay included for public defender supplements could help Fairfax if funded and urged continued monitoring.

Looking ahead: Staff said the governor’s proposal will be negotiated by the General Assembly and that county staff will track member budget amendments, including a senator’s proposal for $125 million toward the Richmond Highway bus rapid transit project.