Loudoun County budget staff asked the Finance Committee July 8 for early guidance as staff begins FY2027 budget development. The committee gave several directional responses on growth targets, tax‑rate modeling and non‑profit funding.

Megan Burke of the Office of Management and Budget told the committee the county’s revenue outlook is positive but that continued strong data‑center receipts make it difficult to slow overall budget growth without addressing the general personal property tax rate. Staff recommended the board consider reductions to the general personal property tax rate to balance growth and noted the FY2026 vehicle tax rate reduction to $3.09 is already planned; staff recommended caution about further reducing the vehicle portion until the full effects of the 2026 change are understood.

Committee guidance and discussion: members broadly supported targeting 8–9% new local tax funding growth to guide staffing and program priorities for FY27 and asked staff to prepare scenarios that show the revenue impacts of alternative general personal property tax rates. Several supervisors asked staff to model a range of reductions and to show how lowering the general rate interacts with the recently lowered vehicle tax rate.

Separately, the committee discussed nonprofit funding. The board had previously appropriated $5,000,000 as emergency one‑time relief to nonprofits; that amount was described in committee discussion as a one‑time allocation. Members asked staff to fold an approximately $895,000 augmentation (used to fund all qualifying applicants in the FY26 competitive nonprofit grant cycle) into the FY27 base with a 3% escalation factor, while treating the $5,000,000 allocation as non‑recurring.

Staff also briefed the committee on longer‑term fiscal concepts including targeted increases to the annual debt issuance guideline (addressed in the CIP article) and asked members whether they wanted staff to engage towns more deliberately around town capital projects; members largely preferred to keep town funding guidance consistent with prior practice while continuing to consider health‑and‑safety related town projects on a case‑by‑case basis.

The committee did not take formal votes on these guidance items; staff said it will use the direction to prepare the FY27 proposed budget and CIP for fall review.