FY 2026 Budget

The County is facing a projected $30-40 million budget shortfall for FY 2026.

Last year, to fund the community’s priority needs while responding to budget pressures and challenges, the County Board raised the real estate tax rate for the first time since FY 2020. In FY 2026, it is anticipated that revenue growth will not keep pace with rising expenses. The County also faces multi-year budget pressures, including a high commercial vacancy rate, the impacts of collective bargaining negotiations, Metro funding, and increased demand for housing and human services programs.

To continue being good stewards of taxpayer dollars, the County must make difficult budget decisions. Before presenting his proposed budget to the County Board, the County Manager asked the community to share thoughts on how to prioritize spending the feedback form is now closed; thank you for your interest in the FY 2026 annual operating budget).

Please stay tuned for the County Manager's FY 2026 budget proposal at the February County Board Meeting.

Want to better understand Arlington's budget? View the infographic.

Budget Materials

Feedback from the Community

The County Manager asked the community to weigh in on the FY 2026 budget from Dec. 4, 2024, through Jan. 15, 2025. Over 1,600 individuals responded online while more than 660 people shared their input in-person. 

Infographic Budget Engagement Overview

View the complete FY 2026 Budget Engagement Analysis(PDF, 1MB)

County Board's Budget Guidance

At the December Recessed Meeting, the County Board directed the County Manager to prepare a balanced FY 2026 budget that ensures stability, efficiency and quality in mission-critical functions of local government, reflects community values, is responsive to the needs of our most vulnerable residents, and values the County’s public employees. Acknowledging the significant economic risks and the uncertainty of declining office property values and changes in the federal administration, the guidance directs that the budget should prioritize fiscal resiliency and reduce adverse impacts on taxpayers.

The Board also directed the Manager to:

  •  Fully fund collective bargaining agreements. For employees who are not covered by a bargaining unit, present compensation proposals that are consistent with the County’s Total Compensation Philosophy;
  • Include funding and/or present funding options for the following affordable housing priorities and social safety net priorities;
  • Provide funding to Arlington Public Schools consistent with the Principle of Revenue Sharing and apply the County/School revenue allocation reflected in the FY 2025 adopted budget (53.2% County/46.8% Schools);
  • Provide programmatic updates on several priorities as part of the proposed FY 2026 Budget, including: Childcare, Climate Resilience, Economic resiliency, Equity Resolution implementation, Vision Zero implementation, and Youth Well-being and After-school programming;
  • Include updated outcome and performance measures, where meaningful and feasible, in the budget narrative;
  • Provide in the proposed budget and/or at the relevant departmental work session an estimate of the impact of significant additions, reductions or restructuring to programmatic outcomes and performance as well as considerations of impacts for equity and climate resilience.

DIRECTION TO THE COUNTY MANAGER FOR PREPARATION OF THE FY 2026 BUDGET

FY 2026 Budget Infographic: Balancing the Budget

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County Manager's Presentation of the FY 2026 Economic Outlook

    

Budget Timeline

FY 2026 budget timeline