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Fairfax County Public Schools Superintendent Michelle Reid is proposing a $4.1 billion budget for fiscal year 2027 that directs nearly all new spending toward employee compensation and benefits while seeking to restore positions cut during last year’s funding dispute.

Reid presented the plan to the School Board on Jan. 22, describing it as a budget focused on essentials. The proposal would increase spending by $197 million, or 5%, over the current budget.

Of that increase, $178 million would support higher staff compensation and benefits.

“Strong educators and support staff are the cornerstone of student success,” Reid said.

School Board Chair Sandy Anderson called the proposal a “nothing-fancy” package suited to current economic conditions.

“This just keeps us going the way we’re going,” Anderson said.

The restrained approach follows a contentious fiscal year 2026 budget process. County supervisors criticized that request as excessive and ultimately provided less money than school leaders sought. FCPS then made last-minute reductions, including cuts to staff raises promised under newly approved labor contracts.

Afterward, County Executive Bryan Hill urged Reid to develop a “budget of reality” for fiscal year 2027. School and county officials and their staffs have worked more closely during the latest budget cycle in an effort to prevent unexpected disagreements.

Beyond compensation, Reid’s plan would reduce class sizes and restore special education and advanced academic resource positions eliminated after last year’s county funding came in below expectations.

FCPS officials were also directed not to propose new spending unless they could identify equal savings elsewhere.

“We know there aren’t new resources,” Reid said. “We’re being very thoughtful to the funds entrusted to us. We need to stop doing existing things to start doing new things.”

County Funding Gap Remains

The proposal asks Fairfax County government to increase its transfer to the school system by $138.4 million, or 5.1%, bringing the total to slightly more than $2.84 billion.

That request is substantially lower than the additional $268 million Reid sought last year. It remains about $22 million above the roughly $116 million in added school support county officials currently project will be available.

Reid said the county’s estimate does not include proceeds from the newly imposed meals tax, which is expected to generate approximately $140 million. Allocating a portion of that revenue to FCPS would be enough to close the projected gap, she said.

Reid called that “a very reasonable” request. Dranesville District School Board member Robyn Lady also expressed confidence that supervisors would provide the additional $22 million.

Unlike school districts in many states, Virginia districts cannot impose their own taxes. That restriction stems from a General Assembly agreement in the 1990s that allowed localities to elect school boards, which had previously been appointed.

The Fairfax County School Board has occasionally included some form of independent taxing authority in its state legislative agenda, but the idea has not received a sustained lobbying push.

State Aid Expected to Rise

The spending plan projects state support will increase to about $861 million. Federal funding is expected to decline slightly, though it accounts for only about $50 million, or 1.2% of the operating budget.

Those estimates could change as state and federal funding decisions develop. At-large School Board member Ilryong Moon said he was hopeful FCPS would receive additional support, particularly from Virginia.

The budget assumes enrollment of 176,133 students during the 2026-2027 school year. Fairfax remains Virginia’s largest school district, although its student population is still below pre-pandemic levels.

A public hearing on the proposed budget is scheduled for Feb. 10 and may continue Feb. 11 if needed.

Hill is scheduled to release his proposed county budget Feb. 17. The School Board and Board of Supervisors will hold a joint meeting Feb. 24, followed by the School Board’s budget presentation to supervisors April 14.

Supervisors are expected to adopt the county budget, establish the tax rate and determine the school transfer on May 5. The School Board is scheduled to approve its final budget May 21, ahead of the fiscal year beginning July 1.

Lady summed up her expectations for the coming negotiations in one word: “Optimistic.”