By OLIVIA DIAZ and MARC LEVY Associated Press
RICHMOND, Va. (AP) — Nearly two decades ago, Virginia gave tech companies a tax break on equipment and software, and they began to build. The state became a data center hub, and they kept building. Residents bemoaned the noise while they built some more. Artificial intelligence boomed, and the power grid strained — still, more building.
Rising education and debt-service costs and the desire to retain a competitive pay scale have contributed to a proposed 4.5% increase in the City of Fairfax’s budget.
City Manager Daniel Alexander detailed a $207.5 million fiscal 2027 year spending package on Feb. 24 that includes a host of tax increases but no new or expanded programming.
A bill to make Fairfax County eligible for a casino is advancing through the Virginia House of Delegates after undergoing some significant changes from the version passed by the state Senate earlier this month.
The House’s General Laws Committee voted 12-7 yesterday (Tuesday) to send Senate Bill 756, patroned by Senate Majority Leader Scott Surovell (D-34), to the chamber’s appropriations committee. All four delegates representing portions of Fairfax County, including committee chair Del. Paul Krizek (D-16), opposed advancing the legislation.
Fairfax County could benefit economically from a casino-anchored development, but the numbers might be more modest than previously shared projections, an internal review by the county suggests.
A Fairfax County casino would produce an estimated $313.6 million in gaming revenue, delivering $62.1 million in local and state taxes, the county’s Department of Management and Budget said in a summary of a feasibility study it commissioned from the consultant MuniCap.
Fairfax County’s real estate tax rate would remain the same, but the typical homeowner would still pay $357 more due to higher assessments under the $5.98 billion fiscal year 2027 budget proposed today (Feb. 17) by County Executive Bryan Hill.
“Fairfax County is stable, competitive and positioned for growth. We are stabilizing and we are also advancing,” Hill told the Fairfax County Board of Supervisors, officially kicking off the two-and-a-half month budget process.
Fairfax County officially has a meals tax.
The 4% levy on prepared food and beverages took effect yesterday (Jan. 1), aligning the county with most other Northern Virginia localities that have imposed a 3-5% tax for years.
Despite political drawbacks, a sales-tax surcharge across Northern Virginia could end up being the main source to increase transit funding in the coming year.
Increasing the sales tax regionally is “probably going to be looked at,” Hunter Mill District Supervisor Walter Alcorn said in a Dec. 4 legislative forum sponsored by the Dulles Area Transportation Association (DATA).
Fairfax leaders will have another funding gap to fill in the coming months, as they solidify fiscal year 2027 budget proposals for both the county government and school system.
How much additional funding the county will need to generate or cut, and where they will find it, remain very much up in the air.
Fairfax County officials say they will be ready when the first installment of the new prepared meals tax comes due in early 2026.
“We are on track — prepared and ready to go,” Robert Barr, division director for revenue systems at the county’s Department of Information Technology, told the Fairfax County Board of Supervisors at a Nov. 25 meeting of its Information Technology Committee.
The president and CEO of Visit Fairfax believes an expected increase of $6.5 million a year in funding for promoting local tourism can be leveraged to create more than $1 billion annually in new economic activity countywide.
The tourism sector’s impact on the county economy “will get to $5 billion a year,” potentially within the next “three to five years,” Barry Biggar predicted at the Board of Supervisors’ Economic Initiatives Committee yesterday (Tuesday).
