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Coronavirus Crisis Causes Arlington County to Slash Budget, Shift Focus on “Essential Services and Critical Needs”

We're likely going to be seeing a lot of this across Virginia...

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See below for video and a press release from Arlington County regarding changes to the budget due to the COVID-19 crisis. As you can see, it’s not good news. Is this what the rest of Virginia’s localities have to look forward to in coming weeks and months? I mean, if it’s this serious in Arlington, which has been super-strong economically and has a great tax base, how about everywhere else?

COVID-19 Results in a Revised Budget Proposal Focused on Essential Services and Critical Needs

As the County faces the impacts of the COVID-19 pandemic, County Manager Mark Schwartz presented the Arlington County Board with a revised FY 2021 Proposed Budget that focuses on core essential services of government, retaining the existing workforce and proactively responding to the pandemic.

County staff estimates a nearly $56 million drop in anticipated revenue for the FY 2021 budget—$34.0 million on the County side and $21.6 million for Arlington Public Schools.

“What was unthinkable two months ago is now in front of us,” Schwartz said. “Businesses have laid off staff, residents have lost jobs, schools have closed and only the most essential functions continue.”

In February, Schwartz presented a budget that added back targeted investments in areas that were falling behind after two years of reductions. Now, his revised budget maintains only the current levels of service, removes all salary increases, places many projects on hold, uses funds from the Stabilization Reserve, and removes almost every addition proposed only a few weeks ago.

The budget delays the opening of the Lubber Run Community Center and the Long Bridge Park Fitness & Aquatics Center until FY 2022.

The County Manager’s revised budget also responds to the pandemic. It provides funding to meet projected demand in direct life/safety services to our residents, such as housing grants, permanent supportive housing, and identifies $2.7 million for emergency needs, such as food assistance. An additional $7.5 million is set aside for potential assistance to small businesses and nonprofits, service delivery recovery and employee support, and possible additional shortfalls in revenue.

The County Board now will take up the Manager’s proposal and is expected to vote on the amended budget on Thursday, April 30. There will be a public hearing on the new FY 2021 budget proposal, followed immediately by a tax hearing, on Thursday, April 23, at 7:00 p.m.

Before the pandemic, the County Board voted to advertise a tax rate of $1.013 per $100 of assessed value for Calendar Year 2020 ($1.026 including stormwater). By law, the Board can adopt a tax rate no higher than the advertised rate.

To follow updates on the revised FY 2021 Budget, go to budget.arlingtonva.us.