FAIRFAX COUNTY, Va. (7News) — Fairfax County is forecasting a nearly $300 million budget shortfall for 2026, an issue the Fairfax County Board of Supervisors will have to address early this year.

Why is there a budget shortfall?

The county says funding for collective bargaining agreements and pay increases to county employees are driving up costs while the county is receiving less money from nonresidential property taxes .

The county says Fairfax County Public Schools agreed to pay for a seven percent increase in pay for staff.

The county is forecasting a 1.8% increase in General Fund revenue which was bolstered by a 4.78% increase in residential property values. But the county explains that fails to offset rising costs.

How will they pay for it?

The Fairfax County Board of Supervisors is exploring implementing a food tax - which has been rejected by Fairfax County voters twice.

The Fairfax County Board of Supervisors may look at raising residential property taxes again. In recent years, the Fairfax County Board of Supervisors has raised property taxes on homeowners despite residents asking the elected officials to stop raising their taxes because the cost of living in Fairfax County is already too high for many residents.

In a presentation prepared by county staff, the county says it is exploring potential budget reductions and that early estimates suggest that $33 million in cuts could be made, but that the reductions would lead to service and program reductions.

What happened to the surplus money?

In 2024, 7News reported that Fairfax County had a $240 million surplus.

In recent years, Fairfax County has had massive surpluses. However, the Fairfax County Board of Supervisors spent much of the surplus money on projects deemed important to the elected officials.

One of those projects Fairfax County is planning to move forward with is a COVID memorial which has been a priority for Chair Jeff McKay .

In the past, residents have also raised concerns that the Fairfax County Board of Supervisors gave themselves massive raises despite their positions being part-time.

In 2023, McKay voted to give himself a $45,000 raise bringing his salary compensation to $145,000. Other Fairfax County Supervisors made $95,000 a year and they voted to increase their salary to around $130,000 in 2023.

McKay also gave himself a county-owned car to drive, becoming the first Chairman in the county to do so. As a result, he doesn’t have to pay car taxes on the county car he drives even though he sets the car tax rate for everyone else in the county.

In April 2023, 7News reported that Fairfax County residents expressed concerns that McKay was using his county car for personal reasons.