A new analysis by the Weldon Cooper Center for Public Service at the University of Virginia confirms a stark fiscal imbalance: for every dollar in state revenue generated by Fairfax County, Virginia, residents receive only about 50 cents back in state funding and appropriations. While the report was exclusive to Fairfax County, and does not include Falls Church, it can be assured that similar net imbalance conclusions apply to the neighboring Little City.
The “Revenue and Returns” report, presented to the Fairfax County Board of Supervisors Economic Initiatives Committee last week, shows that in fiscal year 2024 Fairfax County generated an estimated $5.77 billion in state General Fund tax revenues — constituting a whopping 20.7 percent of all state-collected revenue from localities across Virginia.
By contrast, state General Fund appropriations to Fairfax in that same fiscal year amounted to only $2.93 billion, representing just 11.1 percent of total statewide state-funding allocations.
Put simply: The county’s contribution to Richmond vastly exceeds what comes back. The report concludes that “for every $1 contributed … Fairfax receives about $0.50.”
In the context of the uncommonly difficult economic conditions facing Northern Virginia, in particular, this year, and of such consequences for local governments throughout this region, the impact of this report is even more pronounced.
The bulk of Fairfax’s revenue contribution comes from individual income taxes, with additional amounts from sales, corporate income, and other taxes.
As the largest single revenue contributor among all Virginia localities — producing more in state taxes than the next three largest regions combined — Fairfax’s fiscal contributions play an outsized role in supporting statewide programs and services.
At the same time, the lower rate of state reinvestment underscores a growing concern among local leaders. “Our local economy plays a vital role in supporting services and opportunities across Virginia,” said the County’s Board Chairman, noting that the structure of the funding balance has remained “largely unchanged even as costs and local needs have grown.”
The study comes at a pivotal moment, as Fairfax County and Fairfax County Public Schools (FCPS) prepare to present their joint FY 2027 budget forecast. Early projections suggest modest revenue growth ahead — but also mounting pressure from increasing service demands and rising costs.
County officials say the findings will inform future efforts to engage state policymakers about funding equity and to seek reforms that ensure high-service jurisdictions like Fairfax receive a fair share of state support.
Fairfax Board of Supervisors Chair Jeffrey C. McKay emphasized that the gap directly affects local services and residents. In a statement, he said, “Fairfax County is proud to play a leadership role in Virginia’s economy, but the state’s return-on-investment simply does not reflect the magnitude of what our residents contribute,” McKay said. “We shoulder the responsibilities of a major economic engine—high demand for public education, public safety, human services, and infrastructure—yet the state formulas have not kept pace with our needs or our growth.”
Fairfax County Public Schools (FCPS), which serves more than 180,000 students, carries the largest share of the impact. School Board Chair Karl Frisch said the disparity places increasing pressure on local taxpayers. He said, “Our community is generous, but it isn’t sustainable for local property owners to continue backfilling what the state does not provide,” Frisch said. “The state relies heavily on Fairfax County’s economic strength, yet our students benefit far less from the revenue they help generate. We need funding partnership—not dependency on local subsidies.”
Leaders in the region’s business community also highlighted the importance of reinvestment.
Victor Hoskins, President and CEO of the Fairfax County Economic Development Authority, said the findings should concern anyone focused on growth and innovation. He said, “Fairfax County is the economic powerhouse of Virginia—home to global companies, federal contractors, and emerging tech startups. But continued success isn’t automatic. If the state wants to maintain its competitive position nationally, reinvesting in the communities that generate its tax base is essential.”
Northern Virginia Chamber of Commerce Chair Tina Dale added: “Our workforce, our transportation systems, and our schools must remain strong for businesses to continue choosing Fairfax. The Weldon–Cooper numbers show a clear imbalance that ultimately affects competitiveness.”
The Weldon Cooper Center for Public Service at the University of Virginia provides nonpartisan research and analysis to inform leaders across the Commonwealth. Its fiscal studies are widely regarded as the most comprehensive examinations of Virginia’s state-local revenue systems.
