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#InvestInExcellence

FY 2026 Proposed Budget

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BUDGET PRIORITIES

Provide competitive compensation �for all employees
Meet the changing needs of Fairfax County’s young people and families
Fortify educators to teach all learners
Continue multi-year investments that optimize student learning

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FY 2026 Proposed Budget

As we commit to delivering a world class education, we must resolutely maintain high expectations for each and every student. This requires us to provide sustainable, high support. With that in mind, the proposed budget focuses on:

Providing competitive compensation for our dedicated educators, administrators, and other school-based and operational staff who contribute tirelessly to the growth and success of our students. It also reflects FCPS’ ongoing commitment to lead the region in attracting and retaining the best talent for all positions in the educational field.
Investing in our young people who require additional support services such as special education, Multilingual Learners, and free or reduced-price meals.
Empowering educators to provide differentiated services to students by earning credentials in the Universal Design for Learning or Multilingual Learner Initiatives. Through microcredentials, staff become qualified to teach more types of students. This allows us to invest in our current educators and helps with positions that are difficult to find qualified candidates for.
Continuing multiyear initiatives to support inclusive preschool, certified athletic trainers, family liaisons, fine and performing arts, and the replacement of the HR information project

Next we’ll be going through a lot of numbers, so bear with me, but I want everyone watching at home to know where this funding is going and why it’s so important.

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ABOUT FCPS

Your public school division:

Is the 9th largest school division in America
Stewards $13 billion in public assets
Manages safety and functionality of 200 buildings and grounds
Educates 181,000 children
Employs 40,000 adults: the 3rd largest employer in Virginia�

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FY 2026 Proposed Budget

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FCPS FACILITIES

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FY 2026 Proposed Budget

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COMMUNITY USE OF FACILITIES �BEYOND INSTRUCTION

Most public meeting places in the county are FCPS facilities.

In many cases, provided free of charge to organizations such as homeowners associations, 4H, Scouting groups, county employee organizations, and cultural or civic groups.

Over 500,000 events occurred in school facilities in 2024
169 schools and centers used as general election polling places
142 schools are sites for Fairfax County’s School Age Child Care program
91 religious and cultural organizations had regularly scheduled activities

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FY 2026 Proposed Budget

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FUNDING NEEDS FOR A �25-YEAR RENOVATION CYCLE

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FY 2026 Proposed Budget

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INVESTING IN EACH AND EVERY STUDENT

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FY 2026 Proposed Budget

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SNAPSHOT: PASS RATES ON 3RD GRADE STATE READING ASSESSMENTS

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Note: Data in chart reflects reporting on individual state report card websites.

FY 2026 Proposed Budget

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LOWEST RATIO OF CENTRAL MANAGEMENT

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FY 2026 Proposed Budget

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FUNDS GO TO WORK IN OUR SCHOOLS

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FY 2026 Proposed Budget

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VIRGINIA FUNDS EDUCATION LESS PER STUDENT THAN SURROUNDING STATES AND �THE U.S. AVERAGE

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FY 2026 Proposed Budget

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2023 JLARC STUDY

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Virginia’s Standards of Quality (SOQ) formula calculates substantially less funding than actual K-12 spending and benchmarks.

SOQ formula calculated divisions needed $10.7 billion.

School divisions spent $17.3 billion, or $6.6 billion more, than the funding formula indicated was needed: a 38% difference.

The vast majority of the additional funding for school divisions comes from local governments.

FY 2026 Proposed Budget

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WHAT THIS MEANS FOR FAIRFAX TAXPAYERS

Fairfax now spends 117% more locally ($1.18 billion)

above what is calculated by the state funding formula.

The state funds only what the funding formula calculates.

If the Governor of Virginia authorized the funding at the true cost of an excellent public in Fairfax County,

Fairfax taxpayers would see a

reduction of over $1000 annually property taxes!

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FY 2026 Proposed Budget

Three-quarters of localities are already contributing 45% or more locally above what is required under the current SOQ.

If JLARC were fully funded, brings $568.7M to Fairfax.

We’ve known there was a huge disconnect for many, many years. But the JLARC report makes it undeniable and also provides recommendations for how to right-size the formulas. We have the roadmap – some are budget neutral changes, but many will require revenue to fund them. This is why it is inaccurate to talk about any “surplus” at the state level. There is no surplus, and hasn’t been for decades. The state has not met its constitutional mandate to fund public education in Virginia.

Governor Youngkin did not propose to fund any of these changes in his budget this year, nor last year. He also proposed that $50 million be set aside for private school choices made by parents.

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BUDGET SUMMARY

The FY26 School Operating Fund budget totals $4.0 billion, �a net increase of $297.1 million, or 7.9%, over the �FY25 Approved Budget.
The county transfer request is an increase of $268.3 million, or 10.4%, a decrease from last years request of 10.5%.

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FY26 SUMMARY	CHANGE FROM FY25 ($ in millions)
State Revenue	$23.2
Federal Revenue	($1.0)
Beginning Balance and Other Revenue	$6.7
County Transfer Request	$268.3
Total FY26 Projected Revenue Increase	$297.1
Compensation	$213.7
Baseline Adjustments	$65.2
Identified Investments	$14.2
Multiyear Investments	$4.0
Total FY26 Expenditure Adjustments	$297.1

FY 2026 Proposed Budget

Now, about our proposed FCPS budget:

The FY26 Proposed Budget totals $4.0B.

$297.1M is an increase of 7.9% more than last year’s approved budget, and a 10.4% more request from the county which is $268.3M. Note that the transfer request is only a 5.6% increase from last year’s request.

Reminder:

competitive compensation,
meeting the changing needs of Fairfax County’s young people
fortifying educators to teach all learners
continuation of multiyear investments.

In comparison, health care costs that our school division must pay have risen.

Premiums increased for both the Cigna and Kaiser medical plans due to escalating medical costs, in particular pharmaceutical costs. For plan year 2025, employee and employer premiums increased 15.5 percent for Cigna and 5.4 percent for Kaiser. In addition, for the Cigna plan, there were increases to the deductible, out-of-pocket maximum, and copays

To support these investments, FCPS will be requesting an additional $268.3M, or 10.4%, from the County Board of Supervisors to help sustain FCPS as one of the nation’s premier school divisions.

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EXPENDITURE ADJUSTMENTS�Change from FY 2025 Approved Budget - $ in millions

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Compensation		Identified Investments
Collective Bargaining	$240.8	Safety and Security	$9.3
Retirement Rate Changes	5.5	Differentiated Learning Credentials	4.9
Base Savings	(32.6)	Identified Investments	$14.2
Compensation Subtotal	$213.7
		Multiyear Investments*
Baseline Adjustments*		Inclusive Preschool Expansion	$2.0
Baseline Adjustments	$23.6	Human Capital Management (HCM) Project Year 4	0.7
Enrollment and Student Need	20.0	Fine and Performing Arts Stipends Year 3	0.7
Transfers to Other Funds	12.9	Certified Athletic Trainers Year 3	0.7
Contractual Rate Increases	8.6	Multiyear Investments	$4.0
Baseline Adjustments	$65.2

*Does not add due to rounding.		Total Expenditure Adjustments	$297.1

FY 2026 Proposed Budget

Compensation:

As we look at the Compensation Adjustments, I want to be very clear about why competitive compensation matters. It matters because it impacts student success. Well-compensated teachers and staff are more likely to be satisfied and engaged. They’re more motivated to provide high-quality instruction. And high-quality instruction leads to student success.
In a competitive job market, offering competitive salaries and benefits is essential to recruit and retain talented educators.
Over 85% of the proposed budget is dedicated to instruction. This underscores the importance of investing in the people who deliver that instruction.
By investing in competitive compensation, FCPS can reduce costly turnover, save money, and ensure continuity in the classroom, ultimately benefiting students.
FCPS’ landmark tentative collective bargaining agreements support these tenets.
Compensation adjustments represent a net increase of $213.7M and include:

$240.8M of funding for the tentative collective bargaining agreement which provides:

A 7.0% compensation increase for all employees. This number is in line with some of our neighboring districts. For example, Loudoun is asking for a 6.5% increase in salaries, and Prince William is asking for 7%. We are in the same ballpark.
Contract length increases for H scale transportation workers and food service employees
Increases to medical premiums.

Funding of $5.5M due to rate increases for retirement for FCERS and ERFC.
Base Savings of ($32.6M) that accounts for the recurring savings due to position turnover in FY25.
Position turnover represents the savings realized when experienced employees retire or leave the system and are replaced by employees with less experience who earn a lower salary.

Baseline adjustments:

Funding of $23.6M represents the recurring cost of adjustments for quarterly fund review and other baseline adjustments and primarily funds:

$4.5M for substitute teacher incentive to make permanent the sub incentive programs; $0.5M to continue providing an additional day of middle school late buses for a total of four days a week at 18 schools; $0.2M to provide esports stipends for fall and spring seasons at all 25 high schools; $6.0M to support legal fees for outside counsel that advise and represent FCPS in legal matters; $4.4M for workers compensation for increases in the number of claims and claim amounts as well as related claim management fees; $1.1M for online campus to address the student enrollment growth in dual enrollment courses and offerings in the Career and Technical Education (CTE) and world language content areas; $0.8M supports the rising cost of AP and IB exams and the increase of AP and IB tests registrations

Funding of $20.0M and 207.9 positions for enrollment and student need adjustments.
Funding of $20.6 million and 218.3 positions are due to the increased need for special education services.
This increase is offset by a decline in projected enrollment of 610 students and technical updates (e.g., square footage and FRM rates) representing a net reduction of 18.2 positions and $1.5 million in savings.
Multilingual learner service projections offset by an increased number of positions to meet state requirements results in a net increase of 7.8 teachers and $1.0 million.
Funding of $9.3M to support the continued enhancement of summer programs and $3.6M to address the backlog of major maintenance and a slight adjustment to the transfer that covers the lease payment for Gatehouse Administration Center.
Funding of $8.6M for contractual services, including increases in current service and maintenance contracts, existing leases due to terms and conditions of negotiated contracts and/or renewals.

Identified investments represent an increase of $14.2M.

Within these investments, there are expenditures that support Safety and Security in Schools and Differentiated Learning Credentials.�

Funding of $9.3M for Safety and Security:

The installation of exterior security cameras at the remaining 44 elementary school sites and additional interior security cameras outside every bathroom at middle and high school sites.
Expansion of the Rap Back program, a FBI service that provides real-time notifications of criminal record changes, that allows 10,000 employees to be enrolled.
The implementation of a panic alert system for all staff in every school.
Security vestibule funding for Phase 4 and Phase 5 to complete the remaining 36 school sites in two years.

Funding of $4.9M for Differentiated Learning Credentials:

This funding supports FCPS staff by offering microcredentials for Universal Design for Learning (UDL) and multilingual learners.
Successful achievement of these two microcredentials would demonstrate an educator's ability to effectively implement inclusive practices with the diverse group of students they serve.

Multiyear investments represent an increase of $4.0 million and 70.8 positions.

Investing in the success of our division over multiple years aligns with the intentional design of our Strategic Plan, which focuses on excellence, equity, and opportunity for each and every student through 2030.

These adjustments include:

Funding of $2.0M and 22.0 positions to support inclusive preschool expansion. FCPS aims to provide a strong start through the availability of PreK programs including an inclusive learning environment. These early interactions are crucial for preschoolers’ development and well-being.
Funding of $0.7M to expand fine and performing arts stipends in support of middle school theatre and musicals, high school one act plays, indoor drumline, and indoor color guard. This is important work; I am fortunate to have attended many outstanding productions and performances in our schools in the last 2 ½ years.
Funding of $0.7M to support the fourth year of the Human Capital Management project. This investment supports the implementation of a modernized HCM software application to support core operations and increase efficiency for the entire Division.
Funding of $0.7M and 5.0 positions to support the third year of a five-year plan to provide one additional certified athletic trainer at each of the 25 high schools. At the completion of the multiyear plan, there will be 2.0 certified athletic trainers at each high school. Involvement in sports is so good for our students’ physical and mental health, and it has so many other benefits. I encourage you to come out and supported our talented athletes this winter!

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FY25 MASTER’S LANE COMPARISON

Compensation philosophy stemming from 2016 market study suggested goal of 95-105% of market

Fairfax is at 94.2% of the market mid

At the market max, Fairfax is at 91.4%

Fairfax ranks 5th of 8 at the market min but 7th of 8 at the market mid and max

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School Division	Min	Mid	Max
Alexandria	$64,988	$96,098	$127,208
Arlington	$64,888	$94,090	$123,292
Falls Church	$64,812	$97,178	$129,544
Loudoun	$64,033	$90,371	$116,709
Manassas City	$64,919	$99,065	$133,210
Manassas Park City	$62,410	$93,612	$124,814
Prince William	$63,340	$106,302	$149,263
Market Average	$64,199	$96,674	$129,149
Fairfax	$64,076	$91,047	$118,017
Fairfax Percent of Market	99.8%	94.2%	91.4%

FY 2026 Proposed Budget

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FY26 MASTER’S LANE BEGINNING SALARY

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School Division	FY25 Beginning Salary	Rank	FY26 Proposed Beginning Salary	Tentative Rank
Alexandria	$64,988	1	$64,988	4
Manassas City	$64,919	2	Release 2/25
Arlington	$64,888	3	Release 3/13
Falls Church	$64,812	4	$66,432	3
Fairfax	$64,076	5	$68,561	1
Loudoun	$64,033	6	$66,562	2
Prince William	$63,340	7	Release 2/5
Manassas Park City	$62,410	8	Release 2/10

FY 2026 Proposed Budget

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REVENUE OVERVIEW

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$4.0

Billion

FY 2026 Proposed School Operating Fund �($ in millions)

FY26 SUMMARY	CHANGE FROM FY25 ($ in millions)
State Revenue	$23.2
Federal Revenue	($1.0)
Other Revenue	$6.7
County Transfer Request	$268.3
Total FY26 Projected Revenue Increase	$297.1

FY 2026 Proposed Budget

With that in mind, lets discuss our revenue picture:

Revenue for the School Operating Fund for FY26 totals $4.0B.
The FY26 Proposed Budget requests a county transfer increase of $268.3M, or 10.4%, primarily to fund a compensation adjustment of 7.0% for all employees, comprehensive benefits for employees, and enrollment and student needs. We’ll take a closer look at the county transfer increase in the next slide.
State revenue based on the Governor’s introduced budget is projected to increase by $23.2M, or 2.3%, due to routine rebenchmarking updates, the state’s share of a 3.0% compensation supplement, increase in English language learner funding. The general assembly will need to allocate additional funding to K-12 and begin to make good on the work of JLARC.
Federal aid is projected to decrease by ($1.0M), or 2%, based on the current federal awards for the Carl D. Perkins and IDEA grant awards.
Other Revenue represents an increase of $6.7M due to a projected increases related to TJHSST tuition and the City of Fairfax.

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NEXT STEPS

Board of Supervisors Budget Hearings, April 22-24

Board of Supervisors public meeting for budget adoption, May 13

School Board budget hearings, DATE

School Board public meeting for budget adoption, DATE

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FY 2026 Proposed Budget

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FY 2026 Proposed Budget