Arlington County Board adopts FY 2027 Budget

Published on April 23, 2026

The Arlington County Board voted Wednesday, April 22, 2026, to adopt a $1.7 billion balanced budget for Fiscal Year 2027, a 0.7 percent increase over FY 2026. The Board also voted 4-1, with Board member Susan Cunningham voting no, to adopt the previously advertised 2-cent real estate tax rate increase, changing the rate from $1.033 to $1.053 per $100 of assessed value. 

"The budget we adopted last night is not an easy one: it prioritizes public safety and serving our most vulnerable," said Chair Matt de Ferranti. "After months of deliberation, work sessions and thousands of public comments, the Board decided to focus on public safety by investing in our first responders and in our system of  criminal justice to keep our community safe; ensuring our most vulnerable have the resources they need through funding for food security, housing, our safety net nonprofits, and services for our immigrant families. The Board also wanted to preserve community programs and services, like the Cherrydale Library and the gymnastics program at Barcroft, that help make Arlington a great place to live.”

The real estate tax rate increase will result in an average real estate tax payment increase of $466 for homeowners, based on the average home value of $882,900. The average apartment renter could see an increase of $317, based on an average apartment value of $373,772 and assuming this increase is directly passed onto the renter by their landlord. 

“I am keenly aware that raising tax rates when our federal employees and community as a whole are under attack is not an easy ask,” continued Chair de Ferranti. “I hope and respectfully submit that the choices we made are sufficiently aligned with Arlington's ideals as to be worthwhile as we work to meet this difficult moment." 

Investing in Critical Needs

The Board concurred with many of the County Manager’s proposed investments and changes regarding the County’s work force, critical services, and fiscal sustainability. With some modifications, what was ultimately adopted included: 

• County Workforce Stability: Increases in employee compensation that account for the majority of the overall increase in County investment. This is for both collective bargaining (as outlined in agreements, and with police and fire in particular receiving higher increases to address vacancies and mandatory holdovers) and non-bargaining staff (3% merit increase) and includes increases in employee healthcare premiums and deductibles to address rising healthcare costs;
  
  
• Arlington Public Schools (APS): Per the County’s revenue sharing principles, the transfer to Arlington Public Schools will increase by 1.2 percent to $655. 4 million ($654.3 million ongoing and $1.1 million one-time). The FY 2027 adopted transfer amount includes the addition of $2.2 million in ongoing funds and $1.1 million in one-time funds from the additional 0.5 cent real estate tax rate increase approved at the mark up work session along with $1.8 million in ongoing funding from the additional PPTRA changes. The County Board remains committed to continuing to partner with the School Board to best serve Arlington students;
  
  
• Housing Support: $100.3 million dedicated to housing programs, including more than $29 million for Housing Choice Vouchers, $19 million for housing grants, and $9.1 million for homeless shelters, transitional housing, and for survivors of domestic violence. The adopted budget also includes an option to implement a waitlist for the locally funded housing grant program; and,
  
  
• Personal Property Tax Relief Act (PPTRA): Adjustments to the PPTRA allocation to direct a greater share of State-provided relief funds to residents who own lower-value vehicles to help ease the burden on lower-income households. Under the revised allocation method, full tax relief will be provided on the first $4,000 of vehicle value, compared to the previous $3,000 threshold in CY 2025. Additionally, taxes on the remaining vehicle value (up to $20,000) will be relieved at a rate of 13% for both conventional and clean fuel vehicles.

Additions to the Budget and Supplemental Guidance to the County Manager

As referenced above, the County Board also voted to include additional funding and supplemental guidance to the County Manager on key County and community priorities. These include (but are not limited to): 

• $1,455,619 total funding to the Sheriff’s office to be used for salary increases;
• $1,300,000 in one-time funding to the Department of Human Services, to cover additional housing recipients prior to the implementation of the Housing Grants waitlist, which starts no later than Oct. 1, 2026; 
• $650,398 in total funding to the Arlington Housing Investment Fund;
• $437,050 in one-time funding for additional Opportunities Grants funding;
• $367,000 in total net tax support ($145K ongoing; $222K one-time) to the Department of Parks and Recreation, to restore the Barcroft Recreational Gymnastics  program, with adopted fees to provide greater cost recovery;   
• $334,487 in total net tax support (all ongoing) to the Department of Parks and Recreation, to restore the Barcroft Competitive Gymnastics  program, with adopted fees to provide greater cost recovery;   
• $350,000 in one-time funding for humanitarian assistance;
• $292,768 in ongoing funding to keep the Cherrydale Library branch open, partially offset by eliminating the proposed hiring of an additional outreach librarian;
• $250,000 in one-time funding to Arlington Economic Development, for initiatives and grants at the discretion of the new AED director;
• $200,000 in ongoing funding to the Commonwealth’s Attorney Office, to fund its restorative justice efforts ($150K) and its conversion of a Paralegal position to a Paralegal Supervisor ($50K);
• $197,000 in ongoing funding to the Office of the Independent Policing Auditor, to support a new Deputy Independent Policing Auditor ($172K) and for non-personnel costs ($25K); 
• $150,000 in ongoing funding for Vision Zero initiatives;
• $150,000 in ongoing funding for Food Security Mini grants, to ensure continued grant funding availability for local non-profits to implement select aspects of the county’s Food Security Strategic Plan;
• $107,150 in one-time funding to the Office of the Public Defender, for an additional paralegal fellow for mitigation and investigation;
• $74,913 in ongoing funding to the County Manager’s Office, to restore the Associate Environmental Management Specialist;
• $70,000 in one time funding to the Arlington County Board Office, to continue supporting Ranked-Choice Voting Education efforts. 

Read the full Board’s Supplemental FY2027 Budget Guidance

The new fiscal year begins July 1, 2026.