Henrico County supervisors receive $2 billion budget overview, defer final vote until April 14

Henrico County staff presented an overview of the proposed FY2026–27 operating and capital budgets and the Board of Supervisors voted to defer formal action at the close of the public hearing.

Justin Crawford, the county’s budget director, told the board that "the all funds budget, close to $2,000,000,000," is driven by a nearly $1.4 billion general fund balanced at current tax rates. Crawford said the county’s revenue mix shows roughly equal thirds from real‑estate taxes, state and federal revenues, and other local revenues, and that local revenue growth accounts for over 96% of estimated growth in FY27.

The presentation highlighted pressures from a reduction in estimated state aid for public schools. Crawford said the state aid formula produced a substantial decrease for Henrico County Public Schools (HCPS), which contributed to a large local increase in the school budget. He said the FY27 proposal reflects a 3.3% increase in expenses compared with the prior year, with 83% of that growth dedicated to education and public safety.

Crawford explained staff used a combination of expense reductions and contingency adjustments to balance the budget. He said staff included a 3% across‑the‑board reduction to agency FY26 budgets and recommended a 3% salary increase for employees in FY27 while keeping roughly 80% of employee health‑care costs paid by the county.

On the capital side, Crawford said the total capital budget exceeds $343,000,000. He identified about $84,000,000 in school projects, including $40,000,000 for a new elementary school in the Fairfield Magisterial District and $20,000,000 for mechanical system work to address heating and cooling issues. He said the water and sewer capital budget totals about $134,000,000, with $50,000,000 earmarked for a new water transmission line to improve resiliency in eastern Henrico. The capital plan also includes roughly $36,000,000 in local transportation and pedestrian projects and about $16,600,000 for environmental efforts.

Crawford noted changes suggested during the board’s line‑by‑line review and said the recommended adjustments were intended to have a net zero impact on the total budget, funded by adjustments to the manager’s reserve.

No members of the public signed up to speak in person or via Webex. A staff member advising the board reminded supervisors that state law requires a deferral of at least seven days after the public hearing before the board may adopt the budget; staff recommended returning the item to the board on April 14. A board member moved to defer Resolution 68‑26 until the board’s next public meeting on April 14 at 6 p.m.; the chair seconded the motion and the meeting was adjourned.

The board may accept additional comments by email directed to any board member, the county manager, or the budget director prior to the adoption consideration. The next public Board of Supervisors meeting is scheduled for April 14, when the board will take further action on the FY27 budget.