Stalled VA Budget Creates Uncertainty For Local Governments: Fairfax Supervisors

FAIRFAX COUNTY, VA — Fairfax County supervisors expressed concern Tuesday over the Virginia General Assembly’s failure to reach a final budget agreement, saying the delay is creating uncertainty for local governments awaiting state funding for schools, transportation and other services.

The comments came during the Board of Supervisors’ discussion of its 2026 final legislative report, which the board adopted 9-0. Supervisor Pat Herrity (R-Springfield) was out of the room for the vote.

Supervisor Dalia Palchik (D-Providence) asked county Legislative Director Jennifer Van Ee for an update on the state budget, noting that Fairfax County had already adopted its own budget but was still waiting for state decisions affecting transportation and education funding.

Van Ee said legislative leaders met last week, but the talks “did not sound like they ended well." She said Gov. Abigail Spanberger (D) and General Assembly leaders have continued to say there will be a budget by July 1.

The state budget remains unfinished after lawmakers ended the regular session in March and returned to Richmond for a reconvened session in April, according to the county’s legislative report. County officials said Tuesday that the House and Senate are expected to return to special session later this month.

Among the unresolved issues is Virginia’s sales and use tax exemption for data centers, which the county’s legislative report described as a continuing point of contention. The Center Square reported that the exemption has become a central issue in negotiations, with the Senate budget seeking to end it beginning Jan. 1, 2027, while the House budget would keep it in place through 2035 with added energy and environmental requirements.

Board Chairman Jeff McKay (D) said the delay is not a minor procedural matter for local governments.

“What is upsetting is that we don’t have a budget yet,” McKay said. “You can imagine if our board was sitting here and just decided to all head home and keep postponing when we adopted a budget and what our bond rating agencies would be saying.”

McKay added localities across Virginia are waiting to learn how much state money will be available.

“There are local governments across Virginia right now not knowing what is happening, and not knowing what’s going to happen when they need funds to be flowing into their jurisdiction,” McKay said. “So, this is not a trivial issue.”

The concern comes as Virginia’s revenue outlook has improved. Virginia Mercury reported this week that Spanberger released an updated forecast projecting $1.5 billion more in general fund revenue through fiscal years 2026-2028 than previously expected. The revised forecast includes $585.5 million above the official estimate for fiscal year 2026 and $922.6 million in additional projected revenue for fiscal years 2027 and 2028, according to Virginia Mercury.

In a Friday statement, Spanberger said she has been working with legislative leaders and has made her priorities clear, including raises for teachers and other public employees, funding for rising Medicaid costs, and investments in housing and child care.

The governor also said data centers should pay more for their energy use and to address environmental concerns, including air pollution, water and energy use, and noise.

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“I am confident that General Assembly leadership will get a bill on my desk that I can sign on time,” Spanberger said in the statement. “Because there is no other option — those responsible for funding our government have an obligation to deliver.”

McKay said the uncertainty is especially serious for communities that depend more heavily on state funding than Fairfax County does.

“When I talk to our colleagues at [the Virginia Association of Counties], some of the ones, especially from rural parts of Virginia that are far more reliant on state funding than we are, this is a really desperate moment for them, and a level of uncertainty that they really shouldn’t be facing,” McKay said.

Status Of Fairfax County Board's Legislative Priorities

Supervisors also used Tuesday’s discussion to review Fairfax County’s work during the 2026 General Assembly session.

Supervisor Andres Jimenez (D-Mason), who chairs the board’s legislative committee, said county staff reviewed 1,832 bills and resolutions during the session. The board took formal positions on 227 bills, supporting 135 and opposing 53. Jimenez said 68 percent of the bills Fairfax supported were enacted, while 24 percent of the bills the county opposed were enacted.

Jimenez said the county also achieved a 100 percent success rate on its three legislative initiatives, including measures related to transportation noise enforcement, park protections and public-private partnerships.

“This session was also marked by an increased presence by myself and my fellow board colleagues, reinforcing that in Fairfax County, we strive to be a county of yes,” Jimenez said.

Supervisors highlighted several legislative outcomes, including a bill allowing noise abatement monitoring systems to address loud vehicle mufflers and Spanberger’s veto of legislation that would have allowed a casino in Fairfax County.

McKay thanked Spanberger for vetoing the casino bill, saying the proposal “should have never passed in the first place,” according to the transcript.

Supervisors said they want earlier discussions with Fairfax County’s state delegation before the next legislative session. Supervisor Walter Alcorn (D-Hunter Mill) said the county works better with state lawmakers when it can be proactive rather than responding after bills are filed in Richmond.

Van Ee said county staff and Jimenez have discussed moving the county’s legislative schedule earlier, including meetings with supervisors’ offices before the summer break, a legislative committee meeting in September and a delegation work session in October.

McKay said members of the General Assembly should also give local officials earlier notice about their own legislative priorities.

“So many times we see bills for the first time when they’re dropped in Richmond,” McKay said. “It’s very important for us to know what initiatives they’re going to be working on as well, so that we can provide input not once they’re already in Richmond, but provide input at the beginning of the process of drafting a bill.”