In the 2025 version of the annual budget process, the City of Falls Church is in a stronger position than almost any other jurisdiction in the wider region thanks to revenues being contributed out of the ongoing explosive commercial growth here.

Yet whether or not the costs of running the independent jurisdiction and its prized International Baccalaureate-based public school system without adding to the tax rate burden of its nearly 15,000 residents remains a question that will be left to the next few months to answer. Of course, that is in the context of a major lowering of the tax rate over the last three years even as a brand new, state of the art high school was built and major infrastructure upgrades have been made.

Predicated on no tax rate increase in the coming year, the F.C. City Council set out a budget overview in December based on 5.9 percent revenue growth, with the recent-years’ deal splitting half the growth to the city operations budget and half to the schools.

In that context, and with the important addition of the role of now-allowed collective bargaining in the school system and an expected 159 new students by the fall, the Falls Church City Public Schools Superintendent Dr. Peter Noonan presented his proposed FY 2026 budget to the School Board Tuesday night, and even as it was presented as a strictly “needs based” budget with no frills, it came in at $347,000 over the guidance provided by the City Council.

It marked the final time for Noonan to play the critical role in the City, as he announced his plans to retire this spring after seven years at the helm of the City’s outstanding system .

Noonan’s proposed $4.67 million increase represents, for the first time in seven years, a school system request of the Council exceeds the projected organic revenue growth guidance of 5.9 percent with a requested increase of 6.3 percent, or $347,780.

This increase reflects two primary drivers: the anticipated enrollment growth of 159 students for the 2025-26 school year and the division’s commitment to ensuring competitive compensation for FCCPS’s outstanding staff.

The budget proposal benefits from increased state funding, including $289,311 in additional state aid and $535,816 in sales tax revenue. The division also strategically set aside $545,377 from last year’s state funding to help address this year’s growth needs.

“This budget request reflects our highest priorities and needed investments to support students and staff and is responsive to our collective needs now and into the future,” said Dr. Noonan. The proposal comes as FCCPS continues to be ranked as the No. 1 school district in Virginia and No. 2 in the D.C. area.

Noonan’s recommended budget will now be in the hands of the School Board, who will receive a lot of input, including from citizens, and its own deliberations before formally sending the system’s request on to the City Council in March.

Key components of Noonan’s proposed budget include:

Contractual obligations totaling $3.41 million, including a 2.5% cost of living adjustment and step increases for staff

Enrollment growth funding of $1.18 million to maintain class sizes and support services

Current obligations of $759,201 for essential operational needs

Identified reductions of $683,181 to help offset increases

The budget maintains FCCPS’s commitment to competitive staff compensation, with 85.4 percent of the total budget dedicated to employee salaries and benefits. This investment supports the division’s position as one of Virginia’s top three “Best Places to Teach.”

The proposed budget relies on Falls Church City to provide 80.3 percent of operating revenue, down from 80.9 percent in FY 2025, while state revenue accounts for 16.0 percent of the total budget, up from 15.1 percent in the current year. The remaining 3.7 percent comes from federal and other revenue sources.

Key dates in the School Board’s budget deliberation process are the following:

Budget Work Sessions – January 28 & February 25

Public Hearings – February 11 & March 11

Adoption of the FY2026 School Board Advertised Budget – March 11

City Council Budget Ordinance Adoption including School Transfer – May 12

Public Hearing, Budget Work Session, and Adoption of the FY 2026 Budget – May 13