In a week marked by both fiscal action and leadership transition, the City of Falls Church took major steps forward by formally adopting its Fiscal Year 2026 (FY2026) budget and warmly welcoming incoming City Schools Superintendent Terry Dade.
At its May 12 meeting, the Falls Church City Council unanimously approved a $133.26 million General Fund budget and Capital Improvements Program (CIP), one that balances rising service needs with economic prudence. The adopted budget includes a one-cent reduction in the real estate tax rate, lowering it from $1.21 to $1.20 per $100 of assessed value, while continuing to fund key priorities like education, road maintenance, and affordable housing.
“This is a budget that does a lot of good for our residents and businesses—especially in the backdrop of economic disruption in the region,” said Mayor Letty Hardi. “Like most budgets, this one is about balance—funding priorities such as road maintenance, public education, and competitive compensation for employees, while minimizing taxpayer burden and preparing for more uncertain times ahead.”
The FY2026 budget provides $69.4 million to Falls Church City Public Schools (FCCPS), a 6.9 percent increase over the previous year. General Government operations will receive $57.7 million, reflecting a 6.3 percent increase. While core departmental budgets are growing, the overall budget represents a 3.2 percent decrease from FY2025, largely due to a reduction in debt service payments and the strategic use of capital reserves.
One of the year’s more challenging developments came midway through the budget process. Following the release of the City’s third-quarter FY2025 financial report, local tax revenues were revised downward by $1.2 million. In response, both the City and Schools were asked to reduce their proposed budgets to meet revised fiscal targets.
On the General Government side, savings were achieved by leaving a director position unfilled, eliminating the annual Watch Night event, and making other targeted reductions totaling $261,000. The School Board, in turn, reduced its transfer request by $145,000. Both bodies emphasized their commitment to preserving core services and supporting staff.
The School Board formally approved its FY2026 operating budget on May 13. The $69.4 million plan includes a city appropriation of $55.38 million and reflects the division’s ability to meet City Council’s fiscal guidance for the seventh year in a row.
“This budget reflects our commitment to fiscal responsibility while ensuring we meet the needs of our growing population of students and staff,” said School Board Chair Tate Gould. “Despite having to make some difficult decisions, we’ve maintained our focus on supporting classroom instruction and staff compensation.”
Highlights of the FCCPS FY2026 budget include:
A 2.5% cost-of-living adjustment for all staff, along with step increases for eligible employees.
Funding to make permanent several previously grant-funded positions, including a math specialist, school counselor, and ESOL teacher.
Addition of 4.5 general education teachers, one special education teacher, and three paraprofessionals to address enrollment growth.
A new full-time assistant director of athletics and student activities.
Continued funding for psychology services previously supported by pandemic-era resources.
To meet revised revenue constraints, the school division reduced its textbook allocation and deferred hiring a new International Baccalaureate Primary Years Programme coordinator at the elementary level.
The School Board also adopted two supplemental budgets: a $1.62 million Food Service budget and a $2.66 million Community Services Fund budget, the latter requiring a city appropriation of $107,500.
In addition to budget matters, City Council held a public welcome for new FCCPS Superintendent Terry Dade, who officially assumes the role this July. A Herndon native and graduate of the University of Virginia, Dade brings both local ties and extensive leadership experience to the district.
In his remarks to the community, Dade emphasized the importance of respectful civic dialogue—particularly when facing difficult decisions. That message resonated with councilmembers and school officials alike, especially as the City prepares for an uncertain economic landscape and rising service demands.
The Council meeting also addressed a growing topic of concern among residents: solid waste funding. Many community members have urged the City to move curbside trash collection out of the general tax structure and instead fund it through a designated fee. In response, a Solid Waste Task Force is being assembled to explore options and report back to Council by August. Opportunities for public engagement on the proposed changes are expected in the coming weeks.
From the initial budget proposal on March 24 through its final adoption on May 12, the City conducted ten public meetings—both in person and online—to ensure transparency and invite citizen participation. The FY2026 budget officially takes effect on July 1, 2025.
Residents interested in learning more can view the full budget documents and supporting charts at fallschurchva.gov/Budget and at the Mary Riley Styles Public Library. For school-specific budget details, visit fccps.org/budget.
As the City looks ahead to the next fiscal year, Mayor Hardi offered a word of caution: “We’re in a good position now—but we must also start preparing for a much tougher FY2027 budget. That work begins now.”
