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Fairfax County leaders emerged from hours of budget talks on Feb. 25 without a clear solution to a growing school funding crisis.

Members of the Board of Supervisors and School Board agreed that Fairfax County Public Schools should remain a priority. They were divided, however, over whether to raise taxes, seek more state support or cut other county programs as federal funding threats deepen the uncertainty.

County Executive Bryan Hill’s proposed fiscal 2026 budget provides FCPS with an additional $118.6 million. Superintendent Michelle Reid has requested a $268 million increase to cover rising expenses, including a 7% teacher pay raise.

That leaves the school system facing a $121 million shortfall. An additional $168 million in federal aid could also be at risk under Trump administration policies linking school funding to compliance with executive orders addressing transgender athletes and diversity programs.

School officials warn against deeper cuts

Some supervisors suggested that FCPS could find more savings by consolidating administrative services and improving efficiency. Ideas included eliminating departmental overlap, optimizing bus routes and reconsidering how facilities are used.

School officials said years of reductions have left little room for further cuts without affecting classrooms. FCPS says operational changes and fee adjustments already account for $51 million in savings in its proposed budget.

Additional reductions could damage instruction, student support programs and the school system’s ability to retain teachers, officials warned.

“The school system continually goes through measures to look at business processes, look at service delivery, look at efficiencies, to figure out how can we make sure every penny is spent on the kids in the classroom, and that has not changed,” said Kyle McDaniel, the School Board’s at-large member and budget chair.

The debate is unfolding as supervisors confront broader risks to Northern Virginia’s economy. Board of Supervisors Chairman Jeff McKay warned that federal job reductions driven by the Elon Musk-led Department of Government Efficiency could depress commercial property values, hurt local businesses and add pressure to the affordable-housing market.

Fairfax County and the surrounding region have one of the nation’s largest concentrations of federal employees and contractors. McKay said widespread job losses could reduce local tax revenue and threaten the county’s financial stability.

“The impacts of what’s happening here, in a very localized way, scare me way more than what happened during Covid because, in Covid, the entire world was affected, and the federal government came through with money for both schools and the county to help us through … a health emergency that affected our economy and affected our revenues,” McKay said. “This go-around, we are going to feel the pain of this more than anywhere else in the country, and there is no federal money coming in. In fact, the exact opposite is happening.”

Tax increases remain on the table

County and school officials also pointed to Virginia’s long-running underfunding of public education.

A 2023 Joint Legislative Audit and Review Commission analysis calculated that FCPS receives $568.7 million less than recommended, an amount equal to roughly $3,100 per student.

Fairfax County received approximately $838 million in state Standards of Quality funding in fiscal 2024, the largest total allocation in Virginia. But its large enrollment leaves the county with some of the state’s lowest per-student funding.

Hill’s proposed budget, scheduled to take effect July 1, includes a 1.5-cent increase in the real estate tax rate. The change would generate about $51 million while raising the average homeowner’s tax bill by $638.

Fully covering the school system’s request with property-tax revenue would require another 4.5-cent increase, Hill estimated. That would bring the average homeowner’s total increase to nearly $1,000, an option supervisors have shown little enthusiasm for supporting.

A proposed 3% to 4% meals tax could reduce reliance on property taxes, but it could not take effect before January 2026.

Hill’s plan already contains the county’s largest program reductions since 2010. Public safety agencies account for a substantial portion of nearly $60 million in spending cuts, while more than 200 county government positions are marked for elimination. Further reductions could follow if federal aid disappears.

Budget negotiations will continue through additional work sessions. FCPS officials plan to pursue more state funding while preparing contingency plans for possible losses in federal support.

“We do want to support our teachers,” Sully District Supervisor Kathy Smith said. “I think we just need to keep in mind and explain that to the community … We’re going to have our budget meetings coming up, we’re going to hear from the community, and we’re going to have those discussions. But we have to have that balance because we just can’t keep reaching.”

Public hearings on the fiscal 2026 budget and capital improvement plan are scheduled for April 22 through April 25. The Board of Supervisors is expected to vote on adoption May 13.