Penny Tax Cut Part Of Fairfax Fiscal Year 2022 Budget Markup

FAIRFAX COUNTY, VA — The Fairfax County Board of Supervisors voted 9-1 to approve the fiscal year 2022 budget markup package with the real estate tax rate Tuesday. Final budget approval is slated on May 4, but changes typically don't happen between budget markup and final approval.

The markup package keeps the 1-cent real estate tax cut first proposed by County Executive Bryan Hill. That would bring the rate to $1.14 per $100 of assessed value. However, the residential tax bill will increase by an average $224 based on increased assessment values. The tax bill for each property owner will change depending on their property's 2021 assessment, which is based on 100 percent of fair market value as of Jan. 1, 2021.

While the Board of Supervisors did not change Hill's proposed real estate tax rate, other changes were made to the proposed budget in the approved markup package. The transfer to Fairfax County Public Schools was more than double the proposed amount under Hill's budget. The change from Hill's recommendation of $14.13 million to $29.34 million to the FCPS operating fund accounts for a teacher raise. This was the 11th straight year the board has budgeted an increase for the transfer to the FCPS operating budget. After the Board of Supervisors approves the final budget, the school board will have its own public hearing on the budget on May 11 and May 12 if needed. The school board will adopt the approved budget on May 20.

The Board of Supervisors' approved markup package also provides a 1 percent pay raise for county employees. This supplements bonus checks approved as part of the fiscal year third quarter review. The approved fiscal year 2021 budget did not include pay increases, and Hill's budget proposal did not call for any pay increases.

The board also dedicated a half-penny of the real estate tax for affordable housing, in addition to over $10 million allocated for new affordable housing and preservation in the Department of Housing and Community Development’s $145 million budget. Another funding priority was $400,000 to implement Green Bank and Zero Waste initiatives, adding to $1.3 million included in the baseline budget for environmental and energy initiatives.

"Members of our Fairfax County community have struggled due to a loss of income during the pandemic," said Board of Supervisors Chairman Jeffrey McKay in a statement. "This budget, along with the aid expected from the American Rescue Plan, provides needed resources and services, especially to our most vulnerable, and recognizes the rising real estate values many are experiencing from skyrocketing property assessments."

According to a budget markup document presented to the board's budget policy committee on April 23, a $9.9 million balance is available after adjustments in Hill's April 19 add-on package. The balance reflects updated revenue projects that are consistent with adjustments in the fiscal year 2021 third quarter review. This balance and $20 million from the Economic Recovery Reserve were recommended to provide a significant pay adjustment for county and school employees.