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Arlington County manager warns of multi‑million shortfalls; proposes cuts and unshared tax increase
Summary
County Manager Mark Schwartz told a joint county‑school budget work session that hotel, meals and other revenue declines are producing a roughly $5.5 million shortfall shared with schools and that the county faces multiyear headwinds; the county’s proposed tax‑rate increase is not being shared with Arlington Public Schools.
County Manager Mark Schwartz told a joint work session of the Arlington County Board and Arlington Public Schools on Monday that long‑term shifts in the local tax base and current drops in tourism revenue have left the county facing a significant shortfall that will affect next year’s budget.
Schwartz said the county projects it will be about $5.5 million short of revenue assumed in the FY26 budget and that the schools’ share of that gap is approximately $4.8 million. "We have projections ... that we'll be short around 5 and a half million dollars," he said.
Why it matters: Schwartz and county staff framed the gap as part of a larger change in Arlington’s tax mix — lower state and federal shares of revenue and a commercial office market that remains heavily vacant. That combination, county officials said, reduces the cushion available to absorb inflation and collective bargaining costs.
What the county proposed: The manager presented a package that leans on three elements: (1) a proposed 1.5‑cent tax‑rate increase (county staff said the county is not proposing to share that increase with APS), (2) targeted reductions totaling roughly $10.6 million including 56 position changes, and (3) funding commitments to meet collective bargaining obligations for public safety staff. Cowen, from the county manager’s office, described average bargaining increases of about 10.7% for fire and 11.4% for police and a 3% merit pool for other county staff.
Services at risk: County presenters said cuts were spread across departments but attempted to protect core human services. Proposed reductions mentioned by staff included parks and recreation maintenance, potential consolidation of an emergency rescue unit, reduced library services, and other operational trims. Cowen told the boards homelessness and food security were among the areas that would feel pressure: she cited an increase in homelessness (single adults +8%, families +20%), a housing grants program now serving roughly 1,700 households (about $20 million annually), and rising AFAC visits (a county food‑assistance partner) roughly 7% year over year.
Federal funding and SNAP: County staff flagged recent federal changes affecting SNAP and other USDA‑funded programs and said the county has already recorded roughly $3.3 million in lost federal funding this budget cycle (including SNAP and senior meal programs). "We're losing because of the changes that USDA made," Cowen said, adding that SNAP eligibility changes will affect nearly 10,000 local clients.
Energy and facilities: County staff also warned of an estimated $3 million county budget pressure from looming electricity tariff increases and described an inventory of 90 county facilities with an average age of 44 years that will require reinvestment.
Next steps: County leaders said they will continue work sessions and monitor revenues through the spring; the county manager’s presentation and the board’s discussion will feed revisions before final adoption. County Chair Matt DeFrante emphasized that members remain open to working details between now and the budget adoption deadlines.
Sources: Direct remarks and budget slides presented by County Manager Mark Schwartz and Michelle Cowen at the joint session.
