Why Loudoun County Taxpayers Keep Paying More

Budget Growth Far Exceeds Any Rational Justification

Loudoun County budget data for fiscal years 2024 through 2026 are presented in Table 1. A little arithmetic using these data shows that operating budget expenditures increased by 9.7% from FY 2025 to FY 2026 and local taxation for the same period increased by 11%. The increase in these amounts from FY 2024 to FY 2026 is 22% and 26%, respectively.

On what basis can this be justified over years in which inflation was on the order of 3% per year and population growth is approximately 1.4% per year? This indicates that the compound growth of the factors that could justify increased spending was approximately 4.4% per year compared to the approximate 10% increase in spending and local taxation each year over the years in the table.

Claims of “Lowest Possible Tax Burden” Ring Hollow

Given these data, Phyllis Randall’s statement in the FY 2026 budget cover letter that “the Board continues its commitment to delivering the highest quality services to residents while maintaining the lowest possible tax burden to support those vital services” is not very comforting.

Table 1: Loudoun County Operating Expenditures and Local Taxation FY 2024 to FY 2026

Data Center Windfall Enables Fiscal Irresponsibility

In the FY 2026 adopted budget document the County brags that the average residential property tax bill decreased by $56. It is true that residential property taxes decreased this year by a marginal amount. However, since 2016 they have increased every year save one other than tax year 2025 and, by my experience, have increased 32% since 2016.

This is in spite of the fact that, according to County data, Loudoun County property tax revenues from data centers have grown from approximately $60 million a year to well over $600 million a year through fiscal year 2024. This lays bare the County’s profligacy: a Board of Supervisors that appears to treat ever-increasing revenue not as an opportunity for tax relief, but as a license to spend more.

School Spending Surges While Student Enrollment Shrinks

What about the schools? Data on school operating budget and local taxation are presented in Table 2.

Table 2: Loudoun County Public Schools Operating Expenditures and Local Taxation FY 2024 to FY 2026

Doing the arithmetic on this shows that school operating budget expenditures increased by 8% from FY 2025 to FY 2026 and local taxation for this period increased by the same amount. The increase in these amounts from FY 2024 to FY 2026 is 17% and 20%, respectively.

This is over a period in which enrollment decreased from approximately 81,700 students to approximately 80,500 students. An approximate 1% reduction in students was attended by a 17% operating expenditure increase.

A Budget Process Designed to Produce Runaway Spending

The County’s budgeting process for the FY 2027 budget (July 1, 2026 to June 30, 2027) is currently in progress. At this point in the process, County departments will have submitted their budget requests, which will be compiled into a budget proposal to be considered by the Board of Supervisors.

This process for the FY 2026 budget year resulted in an increase of 236 positions in county government. In the FY 2027 budget year process, one can imagine that departments have again requested increased staffing and expenditures, which will be compiled and, for the most part, rubber stamped into another major expenditure increase.

Fiscal Discipline Requires an Immediate Spending Freeze

This process needs to be brought under control. The Board of Supervisors should set a top-level goal for the FY 2027 budget and require the County Administrator to adjust department budgets to stay within this goal.

Given past history, the goal for FY 2027 should be no increase in operating expenditure or local taxation. The Board should push this same goal down to the School Board. Only in this way can County and school excesses be brought under control.