Roanoke County administrator says budget path ‘unsustainable,’ recommends holding tax rate

Roanoke County Administrator Richard Kwood presented the proposed fiscal year 2026–27 operating budget to the Roanoke County Board of Supervisors on March 24, 2026, recommending that the board hold the real estate tax rate steady rather than pursue an additional reduction this year.

Kwood told the board the recommended total budget is about $285 million and said staff could not responsibly propose a tax‑rate cut “given the current climate,” citing uncertainties in fuel prices, slowing sales tax, and other revenue pressures. He said the administration is recommending a $3 million reduction to the formula transfer to schools this year to make room for employee raises while noting that the county’s tax‑rate reductions since 2023 continue to leave taxpayers with roughly $16.3 million in lower payments compared with 2022 levels.

Why it matters: Kwood framed the budget as a turning point for the county, noting a long‑term mismatch between a growing county population and falling school enrollment. He said school average daily membership peaked at 14,820 in 2008 and the school division projects an ADM of 12,905 for FY27, leaving roughly 3,800 excess seats. That divergence, Kwood said, and rising costs for the Children’s Services Act (CSA), software licenses, and fleet replacement create structural pressure on…