Arlington Manager Proposes FY27 Budget With Cuts, Tax Hike Amid Slow Growth

ARLINGTON, VA — Arlington County Manager Mark Schwartz proposed the FY 2027 budget on Saturday, incorporating guidance from the County Board. The budget accounts for continuing uncertainties, including slow revenue growth and increased expenses over the past three years.

The $1.69 billion proposed budget represents a 0.1 percent decrease compared to the adopted FY 2026 budget. It recommends $10.6 million in funding cuts and a 1.5-cent increase to the real estate tax rate, raising it to $1.048 per $100 of assessed value. The budget is based on 1.1 percent growth in real estate assessments.

Commercial property assessments decreased by 1.5 percent compared to the previous year, impacted by continued weakness in the commercial office sector. Existing office property values, affected by high vacancy rates and changing demand, decreased by 19 percent overall.

"The proposed FY 2027 budget works to balance the many competing priorities and economic realities facing our community." Schwartz said. He added that Arlington continues to feel the economic impacts of regional uncertainty and federal government actions, while expenses continue to increase.

To balance the budget, the Schwartz proposes $10.6 million in service reductions and efficiencies. This could lead to the elimination of 56 staff positions, 24 of which are currently filled. Proposed reductions include eliminating competitive and recreation gymnastics at Barcroft Community Center and closing Cherrydale Library. Staffing adjustments are also proposed for the fire department and Arlington Economic Development.

Details Of County Manager's FY 2027 Budget Proposal

• Schools: A transfer of $650.3 million to Arlington Public Schools, an increase of 0.5 percent.
• Housing Support: $98 million dedicated to housing programs, including more than $29 million for Housing Choice Vouchers, $17.7 million for housing grants, and $9.1 million for homeless shelters, transitional housing, and for survivors of domestic violence. The proposed budget also includes an option to implement a waitlist for the locally funded housing grant program.
• County Workforce Stability: Investments in the county workforce through increases in employee compensation, for both collective bargaining staff (as outlined in agreements) and non-bargaining staff (3 percent merit increase). Increases in employee healthcare premiums and deductibles to address rising healthcare costs.
• Personal Property Tax Relief Act: Proposed adjustments to the PPTRA allocation to direct a greater share of available relief funds to residents who own lower-value vehicles to help ease the burden on lower-income households. Under the revised structure, the State relief will fully cover taxes on the first $4,000 of vehicle value, compared to the previous $3,000 threshold.

The proposed budget recommends a 1.5-cent tax rate increase to fund the Urban Area Security Initiative and the Northern Virginia Emergency Response System after federal cuts. It also addresses the loss of funding for SNAP beneficiaries due to federal legislative changes. The budget includes establishing a Targeted Prevention/Flexible Assistance Program for at-risk households and enhanced compensation for first responders.

The Arlington County Board will hold a public hearing on Tuesday to consider authorizing advertisements for proposed tax rates and fee changes. The Board will review the budget proposal and conduct work sessions starting in early March. A public hearing for the budget is scheduled for Tuesday, March 24, and for the tax rate on Thursday, March 26. The final vote on the FY 2027 operating budget is scheduled for Tuesday, April 21. The fiscal year begins on July 1, 2026.