Arlington Public Schools proposes $845.4 million FY2026 budget, prioritizes staff pay while closing $41.4 million gap

Arlington Public Schools on Friday presented a proposed FY2026 operating budget of $845,400,000, an increase of 2.31% from the prior year, that centers on staff compensation while identifying $22.36 million in reductions and a $41,400,000 forecasted budget gap it must close before final adoption.

The proposal, delivered during a joint Arlington County and School Board work session, would invest about $23,730,000 in compensation adjustments — a combination the district describes as step increases and a 2% cost-of-living adjustment — and aims to keep class sizes from increasing even while phasing in staffing changes recommended by a 2024 planning-factor study.

Why it matters: The budget frames compensation and student-facing services as the district’s top priorities as it seeks to balance long-term competitiveness in staff pay with immediate fiscal constraints. School leaders said shortcomings in state funding mean the division must make trade-offs that will affect central office staffing, some school-level positions and certain programs.

Highlights of the proposal - Total proposed operating budget: $845,400,000 (up 2.31%). Dr. Duran said, "As you'll see in this year's fiscal year 26 budget, our total is $845,400,000 which is an increase from last year of 2.31%." - Forecasted deficit at start of process: $41,400,000. - Compensation investments: $23,730,000 total, including a step increase for eligible employees costing about $11,490,000 and a 2% COLA costing about $12,240,000. Dr. Duran said those compensation choices were intended to keep APS "market competitive and sustainable." - Staffing investments and phases: the district proposes about 23.3 new teaching positions tied to enrollment and demographic changes…