Michael O’Connell,Patch Staff

FAIRFAX COUNTY, VA — Fairfax County property owners can expect their real estate tax bill to increase by $357 on average, according to the Fiscal Year 2027 Advertised Budget plan County Manager Bryan Hill presented to the Board of Supervisors on Tuesday.

“Each penny in the tax rate generates approximately $35 million in revenue, highlighting the importance of discipline, financial management,” Hill said, during his presentation. “Residential properties now represent nearly 79 percent of the tax base. The market remains strong, but growth has moderated to a more sustainable levels. Overall, residential equalization is just under 4 percent.”

Even though the budget proposal maintains the same tax rate of $1.1225 per $100 of assessed value, the real estate tax base has increased 3.77 percent, meaning that both residential and non-residential assessments are up, according to Hill.

The Board of Supervisors is scheduled to authorize advertisement of FY 2027 tax rates at a March 17 public hearing and adopt the FY 2027 Approved Budget on May 5.

“Revenue growth has normalized following the volatility of a pandemic and recovery period in fiscal 2027 revenue growth is projected at 3.7 percent, reflecting moderating real estate appreciation and economic normalization,” he said. “This is down from 4.5 percent last year, but still a healthy increase that reflects a stable real estate market and the full year impact of food and beverage tax.”

The food and beverage tax, which went into effect Jan. 1, is expected to provide revenue of $136 million during FY2027. This is based on the $68 million the county expects to receive in the final six months of FY2026.

The commercial sector is stabilizing following significant disruption, according to Hill. Office vacancy rates declined for the first time since 2019.

“Industrial properties, including data centers, continue to perform strongly,” he said. “Office elevator buildings, which makes up nearly a quarter of the nonresidential base are still down, but the decline is moderated. Overall nonresidential equalization turned positive at 0.92 percent after two years of declines. This reflects early signs of stabilization and long term recovery.”

Hill’s budget plan includes a $118 million increase for Fairfax County Public Schools, which is less than the $138.4 million, or 5.1 percent, Superintendent Dr. Michelle Reid requested in her FY2027 Proposed Budget.

Support For Fairfax County Public Schools

• Provides an increase of funding of $99.19 million in the School Operating transfer
• $4.59 million associated with the transfer of Values in Prevention program, Middle School After School program, and transition services to FCPS
• Superintendent’s budget requested School Operating transfer increase of $138.4 million, or 5.1 percent
• FCPS budget is anticipated to benefit by approximately $106 million from adjustments included in the former Governor’s proposed budget through additional revenues and a reduction in the VRS contribution rate
• In total, state action and the County’s proposed transfers result in approximately $224 million of funding flexibility for FCPS
• Additional increases in funding to FCPS, discussed later in the presentation, include $7.5 million in the transfer to the School Construction Fund in recognition of the significant facility maintenance needs facing FCPS and $11.40 million for School debt service associated with the sale of $230 million in bonds for FCPS in January 2026

The FY2027 budget plan includes a 2 percent cost of living increase for county employees. It also funds the following collective bargaining agreements:

SEIU bargaining unit members (General Government Employees)

• Performance and Longevity increases
• The County’s living wage increases to $18.50 per hour

IAFF bargaining unit members (Firefighters and E-911 Dispatchers)

• Merit increases

SSPBA bargaining unit members (Police Officers)

• Merit and Longevity increases
• 1 percent scale adjustment

Non-represented employees

• Performance, Merit and Longevity increases

“We’re also increasing the county’s living wage to $18.50 per hour, the first step in three-year plan included in the SEIU contract that will see the living wage reach $20 by fiscal 2029,” Hill said, adding there will be an increase of $15.59 million in employee benefits due primarily to health insurance premium increases. “Altogether, these investments ensure we remain competitive in a tight labor market and honor the commitments made under our collective bargaining agreements.”

Hill’s budget proposal also included a total of $32.85 million in reductions.

• $31.57 million in net savings identified, including a reduction of 107 merit positions
• $32.85 million in expenditure reductions, partially offset by $1.28 million in decreased revenue
• Proposed reductions range from the downgrade of positions to the elimination of programs
• Department of Human Resources will work with agencies to identify opportunities for placement of impacted merit employees

Residents can submit testimony on the budget by email, phone, online or text. Anyone who wishes to testify during a public hearing in person, by video or phone, must register in advance. Call the Clerk to the Board’s Office at 703-324-3151 (TTY 711) or email clerktothebos@fairfaxcounty.gov for more information. In addition, each of the supervisors will be hosting budget town halls.

FY2027 Fairfax County Budget Timeline

• Feb. 17 – County Executive presents FY 2027 Advertised Budget Plan
• Feb. 24 – Joint Board of Supervisors/School Board Budget Committee Meeting
• Feb. 26 – School Board adopts FY 2027 Advertised Budget
• March 17 – Board of Supervisors authorizes advertisement of FY 2027 tax rates and FY 2026 Third Quarter Review
• April 14-16 – Board of Supervisors holds Public Hearings on FY 2027 Budget, FY 2027-FY 2031 Capital Improvement Program, and FY 2026 Third Quarter Review
• April 28 – Board of Supervisors marks-up FY 2027 Budget, adopts FY 2027-FY 2031 Capital Improvement Program and FY 2026 Third Quarter Review
• May 5 – Board of Supervisors to adopt FY 2027 Approved Budget
• May 12 – School Board holds public hearings on FY 2027 budget
• May 21 – School Board adopts FY 2027 Approved Budget
• July 1 – FY 2027 Budget Year Begins