Mathews County officials are grappling with a significant budget deficit as they prepare for the FY26 budget, revealing a shortfall of $1,227,812.42, which translates to an increase of approximately 5.83 cents on the real estate tax. This financial challenge was a focal point during the Special Worksession held on April 13, 2025.

The discussion highlighted the need for strategic planning around debt service, with officials contemplating whether to allocate 0 to 2 cents for the upcoming fiscal year. A proposal emerged to allocate $2 million for school improvements, which could alleviate some financial pressure by avoiding additional debt service costs. This approach aims to utilize existing funds rather than incurring new loans, which would help maintain the county's financial health.

Officials also discussed the implications of interim financing, noting that they had already drawn $1.735 million for capital expenses this fiscal year. The conversation underscored the importance of managing the county's fund balance, which is currently around $4.8 million, with expectations of additional funds from VDOT.

The meeting revealed a consensus on the need to be prudent with taxpayer money, emphasizing the importance of not taking on more debt than necessary. As the county navigates these financial challenges, officials are focused on ensuring that any decisions made will benefit the community and maintain fiscal responsibility.

Looking ahead, the county will need to finalize its budget decisions, balancing the need for school improvements with the imperative to manage debt and maintain a healthy fund balance. The outcomes of these discussions will be crucial as Mathews County prepares for the upcoming fiscal year.