Loudoun County Administrator Tim Hemstreet has presented the proposed Fiscal Year 2026 (FY 2026) budget to the Board of Supervisors. The $4.7 billion proposal, which includes a $1.1 billion county operating budget and a $2.0 billion allocation for Loudoun County Public Schools (LCPS), emphasizes tax reductions, employee compensation, and economic stability.
Lower Tax Rates, Stable Revenue
The budget is structured around a real property tax rate of $0.805 per $100 of assessed value, which is six cents lower than the current rate and one cent below the homeowner’s equalized tax rate. As a result, the average homeowner’s tax bill is projected to decrease slightly from $6,337 in 2024 to $6,280 in 2025 for existing properties.
The main tax adjustments include:
- Real Property Tax Rate: $0.805 per $100 of assessed value
- Vehicle Personal Property Tax Rate: $3.48 per $100 (67-cent reduction)
- General Personal Property Tax Rate: $4.15 per $100
Strategic Investments and Workforce Enhancements
The proposed budget allocates resources for essential services, employee compensation, and community growth:
- $22 million for base budget adjustments to maintain current service levels
- $24.7 million in employee compensation adjustments, including:
- 4% merit increase for the general workforce
- 2.5% salary scale adjustment and step increase for Fire & Rescue personnel (average 5.5% increase)
- 5% salary scale adjustment and step increase for Sheriff’s deputies (average 8% increase)
- 240 new positions across 30 departments, supporting the opening of new facilities
- $17.3 million dedicated to affordable housing initiatives
- $47.7 million for the Revenue Stabilization Fund, safeguarding against fluctuations in data center tax revenue
“While this budget’s rate of growth is higher than the county’s average, it remains affordable due to increased revenues from the data center industry, which now generates 38% of all general fund revenues,”
said Hemstreet.
Education Funding and Capital Improvements
The LCPS budget request is fully funded, with a $123.4 million increase in local tax funding. The School Board will present its budget to the Board of Supervisors on February 24, 2025, at the LCPS Administration Building in Ashburn.
The county’s $3.8 billion Capital Improvement Program (CIP) for 2025-2030 prioritizes transportation (40%), county projects (33%), and school projects (27%). Key investments include enhancements to pedestrian infrastructure, major transportation corridors, and facility renovations.
Economic and Population Trends Shaping the Budget
Loudoun County’s economy continues to grow, with a 2% job growth forecast for FY 2026, surpassing state and national averages. While residential growth has slowed, commercial property values surged by 50%, largely driven by the data center industry, adding $16 billion in value last year.
To mitigate risks associated with data center revenue fluctuations, the Revenue Stabilization Fund, established in 2023, will reach its $127.7 million funding target in FY 2026, exceeding the 10% reserve goal.
Public Participation and Next Steps
Residents are encouraged to engage in the budget process through public input sessions and hearings:
- Public Input Session: February 22, 2025, at 9:00 a.m.
- Public Hearings: February 27, 2025, at 3:00 p.m. & 6:00 p.m.
The Board of Supervisors will finalize the FY 2026 budget on April 1, 2025. Public input can be submitted in person, virtually, or via email. Sessions will be broadcast on Comcast Government TV Channel 23, Verizon FiOS Channel 40, and streamed at The Loudoun’s Meetings Page.
For detailed budget documents and updates, visit The Loudoun Budget Page.
Sources: Loudoun County.
