Arlington County's Board has officially adopted a balanced budget for the fiscal year 2026, maintaining the real estate tax rate at $1.033 per $100 of assessed value while introducing a modest increase in the meals tax from 4% to 5%. This decision, made during the April 9 recessed meeting, aims to address a projected budget deficit of $30 to $40 million while prioritizing essential services for the community.

The budget resolution includes several key components: the authorization for the county manager to negotiate grant agreements with nonprofits, a technical correction to the Department of Human Services' budget, and the allocation of funds from the fiscal year 2025 capital budget to support 2026 project priorities. Notably, the meals tax increase is designed to align Arlington's rates with neighboring jurisdictions, reflecting a strategic shift towards more sustainable revenue sources.

Board members expressed their commitment to maintaining vital services, particularly for vulnerable populations. The budget emphasizes investments in public safety, housing stability, and social services, with a significant portion allocated to public schools. The board acknowledged the challenges posed by rising costs and the need for fiscal resilience, particularly in light of the volatile nature of revenue from taxes like the meals tax.

Despite the budget's constraints, board members highlighted the importance of supporting local businesses, especially restaurants, during these uncertain economic times. The board's approach aims to balance fiscal responsibility with compassion, ensuring that essential services remain intact while navigating the complexities of the current economic landscape.

As Arlington County moves forward, the board will continue to monitor the budget's impact and make adjustments as necessary, reaffirming its commitment to serving the community's needs amidst ongoing challenges.