At the Arlington County Board’s meeting yesterday (Tuesday), Schwartz projected revenue will grow by 2.9 percent in FY 2019, but the county’s expenditures will grow by 4 percent. That would result in a funding gap of between $10 million and $13 million.
The funding gap assumes the current real estate tax rate of $1.006 per $100 of assessed value will remain the same. County staff is also projecting “modest growth” in assessed property values.
The projections are only for county government, and do not include revenues and expenditures for Arlington Public Schools. The forecast largely keeps the county’s operations and services budget the same, with the exception of expansions in transit service as laid out in the Board-adopted Transit Development Plan.
“This is a preliminary projection — it’s still early in the budget-building process,” Schwartz said in a statement. “We have additional information that will come in the next few months — including actuarial reports for our pension and retiree healthcare, state budget proposals as well as Metro’s updated financial forecast.”
Through November 22, residents can share feedback online about the FY 2019 budget, in addition to the series of public roundtables that end this week.
The county is also seeking feedback on Schwartz’s plan to spend the $11.1 million surplus from this past year’s budget between five “near-term needs,” including affordable housing, facilities studies, public safety employee compensation, a fund for “unforeseen needs” and a security system upgrade at the county’s Justice Center.
Residents can email [email protected] with comments on the plan. Those comments will then be compiled and shared with the County Board before its November meeting, where members will vote on close-out spending.
County staff said $11.1 million is left over, 1.4 percent of the county’s FY 2017 General Fund budget, excluding money appropriated to Arlington Public Schools.
The county collected just over $1.022 billion in revenue from property, business, sales taxes and other sources, having projected in April it would collect just over $1.004 billion. That is 1.8 percent more than projected.
“It is the lowest as a percent of total budget in recent years; in FY 2016, available funds totaled $17.8 million, or 2.4 percent, and in FY 2015 available funds totaled $21.8 million,” staff wrote. “This reflects diligent focus on executing the adopted FY 2017 budget.”
Schwartz is recommending the Arlington County Board use the leftover funds in the following ways:
- Affordable Housing Investment Fund: $5.2 million in one-time funding to be set aside for the FY 2019 budget.
- Critical Life Safety Needs: $2 million for unanticipated security system upgrades to the county’s Justice Center in Courthouse.
- Employee Compensation: $1.75 million to reflect changes in federal law on several position classes in public safety.
- County Manager Operating Contingent: $1.25 million to address “unforeseen needs that arise during the fiscal year without reprioritizing or cutting other programs.”
- Facility Studies: $900,000 to primarily fund additional site analysis at the Buck and Carlin Springs sites, as directed by the Board.
“As was started with housing grants as part of the FY 2018 budget, it is important to move to a higher level of ongoing funding for AHIF in the future,” staff wrote. “This transition to a higher amount could take several years, and the transition can be eased with reliance on available one-time funding.”
Certain community members and some County Board candidates have criticized the closeout practice in Arlington, and instead suggested the extra money should be given back to residents and businesses as tax relief, or at least applied to the next year’s budget.
The County Board will consider its options at its recessed meeting tomorrow (October 24), although numbers are preliminary until the county’s independent auditors complete their work at the end of the month.
— ArlingtonVA (@ArlingtonVA) October 10, 2017
Funding for schools, Metro and public safety officials weigh heavily as Arlington County’s initial budget conversations continue.
In an infographic released yesterday (Tuesday) ahead of more public roundtables to discuss the FY 2019 budget, county staff highlighted how the county spends its money and the challenges ahead.
According to the data, the biggest expense in the county’s operating budget is Arlington Public Schools, which is allocated $490.2 million by the county, or 39 percent of its budget. Human services and public safety are second and third, around $140 million each, or 11 percent.
Among the challenges ahead, staff said APS enrollment has grown by 850 students a year for the last five years, and it takes up almost all of the $510 million raised from real estate taxes on homes, condos and apartments.
And with Metro needing more money and an office vacancy rate of 17.8 percent, which keeps commercial real estate revenue down, county leaders are expecting some tight fiscal times and hard budgetary decisions.
A number of groups will be looking to influence county leaders’ thinking during the budget discussion. Among them is IAFF Local 2800, the Arlington Professional Firefighters and Paramedics Association.
In a tweet Tuesday, the group said firefighters, paramedics and police officers need a market adjustment to their salaries — a pay rise to keep up with inflation and the rising cost of living — to “remain competitive.” The last adjustment was in 2013.
According to figures provided to ARLnow.com by IAFF Local 2800, starting pay for county firefighters is 20 percent below the regional average and only $2 more per hour than the county’s minimum wage.
Since the last “market adjustment,” the group said, inflation in the region is up almost 5 percent, the cost of family HMO health insurance for county employees has increased over 45 percent, and the cost for HMO coverage for retirees and their spouses has increased over 55 percent.
Local 2800 added that new firefighters will earn 12 percent less per hour over a 20-year career compared to their peers in Fairfax, Prince William, Prince George’s and Montgomery Counties, the City of Alexandria and D.C.
“Arlington invests a tremendous amount of money in hiring, training and developing its firefighters,” said Brian Lynch, President of Local 2800. “Every time a firefighter leaves the department for another opportunity or does not complete their probationary period, we consider this a loss of an investment in human capital. If the department’s physical capital, vehicles, tools etc. were being lost the way we are losing our people, it would be considered common sense to try to stop the losses. There is not only a moral imperative to fairly compensate those who risk their lives to protect the community, there is also a fiscal imperative.”
Arlington Kicking Off Budget Process Early — Normally it is a conversation that starts later in the year, but for the upcoming Fiscal Year 2019 budget process Arlington County is holding “an earlier-than-ever-before series of roundtable discussions on budget priorities and challenges.” The first is scheduled to take place at Westover Library on Friday, Sept. 29. [Arlington County]
More Renovations for Crystal House — The second phase of an extensive renovation process at the massive, historic Crystal House apartment complex in Crystal City is complete: “Some of the amenities include two rooftop ‘sky decks’ with billiard tables, rooftop grilling and dining areas, and a fitness center with a yoga studio. There is also an Olympic-sized swimming pool, new lobbies with Wi-Fi, a clubroom, and a conference room.” [Curbed]
Arlington’s Little League Coach of the Year — Arlington Little League coach Larry Patent beat out 276 other coaches in the league to win the honor of Coach of the Year. “What makes Larry Patent special,” writes a reporter for TV station WUSA 9, “is that he coaches a team made up of players with mental and physical disabilities.” [WUSA 9]
County to Issue New Bonds — Arlington County is expected to sell tens of millions of dollars worth of revenue bonds next month. The bonds will fund the acquisition of the Buck property across from Washington-Lee High School, the “acquisition, design and construction of an office building at 2920 S. Glebe Road,” and “upgrades to the County’s Assessment and Collection system and Enterprise Payments System.” The bonds will also refinance older bonds and save up to $3.8 million. [Arlington County]
Jimmy Carter Can’t Help Local Office Market — Despite the protestations of a local civic activist, Arlington County officials say they cannot successfully sue the federal government over a 1970s-era executive order from President Jimmy Carter that gave D.C. and Arlington “priority in the location of federal agencies in the Washington area.” Federal offices have been moving out of Arlington for cheaper office space farther away from the District. [InsideNova]
Photo courtesy Joe Cashwell
Arlington County will not be asked to pay for more from its local coffers to cover dramatic funding hikes for Metro, the agency’s general manager promised Tuesday night.
Metro General Manager Paul Wiedefeld said he hoped to cap any requests for increased contributions from the various jurisdictions that make up the transit authority at 3 percent per year.
More money for Metro was a factor in the Arlington County Board’s decision to hike property taxes by 1.5 cents, meaning residents can expect to pay an extra $277 on average. Arlington will contribute $70.7 million for FY 2018, compared to $56.6 million in FY 2017.
And while Wiedefeld’s pledge does not rule out Arlington’s contribution rising, it would be a lower increase than the 23.85 percent hike taxpayers funded for Metro’s fiscal 2018 budget.
Wiedefeld, during his presentation to the County Board, said smart fiscal management would avoid asking jurisdictions for more money, as would a new dedicated revenue source. The Metropolitan Washington Council of Governments adopted a resolution earlier this month calling for a dedicated funding source, but it would need buy-in from Maryland and Virginia’s state assemblies as well as D.C.’s government.
County Board Chair Jay Fisette said the FY 2018 contribution was a “big number for a locality like Arlington,” and said he welcomed a cap on funding.
Board Vice Chair Katie Cristol said she was “delighted to see [the promised funding cap] having just gone through a pretty difficult budget process and like many other jurisdictions are struggling with the idea of trying to do that again.”
Wiedefeld also promised that local riders of the Blue and Yellow lines would see more frequent trains as Metro looks to adjust its rail service, starting June 25. He said that the plan is for the Blue Line to arrive on platforms every eight minutes during rush hour, instead of every 12 minutes, as is current practice to accommodate the Silver Line.
Board member John Vihstadt pointed out that riders of the Blue and Yellow Lines in Arlington might have “a little different perspective” on Metro’s reliability from those who use the Orange and Silver Lines in the county.
“I think we have to roll this out in June, let’s start to rebuild the base around that, deliver that and be much more consistent in that service, and then as we start to get better and better we can look at ways we can expand that,” Wiedefeld said. “But we have to start with looking at the realities of where we are.”
On ARLnow’s 26 Square Miles podcast last week, County Board and Metro board member Christian Dorsey said that while Metro still has work to do to increase reliability, delays have decreased as SafeTrack has wrapped up.
County residents will see their electricity and gas bills rise slightly as of July, while next month fares will increase on both Arlington Transit and Specialized Transportation for Arlington Residents.
And the County Board denied a request that the Education Center and adjacent planetarium be designated as a historic district, so that Arlington Public Schools can continue to keep the site as a contender for a fourth high school.
ART and STAR Fares To Go Up
Fares on ART and STAR will go up on June 25 to keep up with similar hikes for Metrobus and MetroAccess.
The ART adult bus fare will rise from $1.75 to $2 and the ART discount fare for seniors, students and people with disabilities goes from 85 cents to $1.
Local STAR trips will increase in cost from $3.50 to $4, while trips inside the Capital Beltway and trips beyond increase 50 cents each, from $5 to $5.50 and from $9 to $9.50, respectively.
ART’s iRide program offering discounts for teens would be extended to elementary school students, while the program allowing free use of ART by personal care attendants accompanying MetroAccess-certified riders would also be extended.
Board members said they have heard several complaints about the cleanliness and reliability of buses in the county, and urged transportation staff to keep on top of any problems. Board member Christian Dorsey, who also represents Arlington on Metro’s Board of Directors, drew a comparison between STAR and MetroAccess.
“I do think it’s essential with STAR that Arlington not accept the mediocrity that Metro has dealt with with MetroAccess,” he said. “It was once considered a shining star in the paratransit world, it needs to continue to do so.”
Education Center Historic District Denied
The Board voted to deny designating the Education Center and the adjacent David M. Brown Planetarium at 1426 N. Quincy Street as a historic district, in agreement with staff’s recommendation.
County Board member John Vihstadt said that while he appreciates the 1960s-era architecture, Arlington Public Schools should not have its options cut down when it faces capacity issues.
The board asked staff to work with their APS counterparts to look at possible adaptive reuses of buildings built in the “New Formalist” style, which the center is an example of.
“The school system, I believe, needs certainty and clarity now,” Vihstadt said. “If we defer, it leaves a cloud over the building, it leaves doubt, it leaves conjecture. If we recommend designation, it potentially hamstrings APS as to cost, as to timeframe, as to process.”
Gas and Electricity Bills Set For Slight Hike
Residents will see a slight uptick in their gas and electricity bills, a plan county staff said will generate more than $650,000.
The electricity tax rate will increase to $0.005115 per kilowatt-hour (kWh) from $0.00341 per kWh, with the first 400 kWh per month excluded from taxation. The natural gas tax rate will increase to $0.045 per 100 cubic feet (CCF) from $0.030 per CCF, with the first 20 CCF per month excluded from taxation. The hike will be most keenly felt by those residents who use a lot gas and electricity.
A staff report on the plan notes that Arlington’s would still be among the lowest utility tax rates in Northern Virginia.
From the extra revenue, factored into the FY 2018 budget approved in April by the County Board, the cost of a full-time staff member will shift from the county’s General Fund to the Arlington Initiative to Rethink Energy, consultant costs are covered and more than $400,000 will go towards energy efficiency in county and APS buildings.
County Board chair Jay Fisette said the extra tax money is “all to do good things to move the community energy plan forward and meet the goals of that master plan.”
Arlington residents can expect to pay an extra $277 on average in property taxes after the County Board approved a 1.5-cent tax increase for fiscal year 2018.
The tax hike, less than the Board’s advertised maximum raise of 2 cents, will help fund Arlington Public Schools and Metro. APS will receive an extra $23.3 million, while Metro will get more than $14 million more, meaning Arlington’s contribution to its operating budget will be $71 million a year.
“This budget is a compromise and a consensus of the Board, and reflects the values of this community,” said Board Chair Jay Fisette. “The Board agreed to a modest increase in the property tax rate — less than the [County] Manager recommended — because of the extraordinary funding needs of Metro and our public schools.”
Residents will see several fees increase too. The household solid waste rate will increase by $6.88 a year to $314.16 annually, while the water/sewer rate will increase to $13.62 per thousand gallons. The Residential Utility Tax will see a hike too, while a new $60 accessory homestay permit fee has been added for those who wish to use services like Airbnb to let others stay in their homes.
The Board also hold a public hearing in May on proposed fare increases for Arlington Transit (ART) and Specialized Transportation for Arlington Residents (STAR), the county’s transit service for the disabled. Board members said increases are consistent with Metrobus fare increases, and would help with rising operating costs.
Also included in the $1.5 billion is an extra $1.3 million for the county’s Affordable Housing Investment Fund, taking its total in the budget to just over $15 million. The County Board also approved hiring seven new sheriff’s deputies, three more emergency call takers and three police patrol officers. The sheriff hirings will be phased over several years.
Among other programs to receive extra funding were the Columbia Pike Revitalization Organization and the Lee Highway Alliance. The latter had been slated for a budget cut alongside other programs, but last month supporters spoke against that plan.
The Board also provided $100,000 to fund groups that help assist undocumented County residents, families with mixed immigration status and refugees.
At its meeting Saturday, Board members also gave the green light to a 3.5 percent pay increase for all county employees, including themselves. Under the plan, Board members’ pay would rise to $53,282, with the chair’s pay at $59,610.
Board member John Vihstadt (I) tried to separate discussion of other county employees’ raises from talk of Board members’ increases, as he said it would make the talks more transparent.
“I just find it a little anomalous that at the very time we are going to be imposing a fairly sizable property tax increase, which I am voting for, that we’re able to find the money ourselves to help us cope with that increase, but the community doesn’t have such a luxury or advantage,” he said. “I oppose us giving ourselves our own pay raise like this.”
But other Board members objected, and questioned why that issue was raised so late in the game.
“There were so many other important things that we dealt with, and this is 100 percent political posturing that is disappointing to me,” Fisette said. The pay raises passed together with Vihstadt’s abstaining, and he promised to donate the extra money he will receive to charity.
Budget Plan Has Slightly Lower Tax Rate Hike — The 2017-2018 county budget that Arlington County Board members are set to vote on this weekend includes a 1.5 cent tax rate hike, a half cent lower than first proposed. The budget includes increased funding for schools, Metro, county employee raises, land acquisition and services for immigrants faced with deportation. It raises the tax burden on the average homeowner by about $300. [InsideNova, Washington Post]
No Easter Egg Roll Tix for APS — Arlington Public Schools received hundreds of tickets to the annual White House Easter Egg Roll under the Obama administration, but did not receive any for President Trump’s first egg roll this year. D.C. Public Schools also were not invited. Critics say minority children were under-represented at the event. [Patch]
Big County Events This Weekend — Among the events in Arlington this weekend are a trio of major annual happenings: the Arlington Homeshow and Garden Expo at the Thomas Jefferson Community Center, the Arlington Teen Summer Expo at Wakefield High School and the Arlington Festival of the Arts in Clarendon.
Blue Virginia’s County Board Endorsement — Influential local Democratic blog Blue Virginia has endorsed Erik Gutshall in the race for Arlington County Board. A party caucus will be held next month for the four-way Democratic contest. [Blue Virginia]
Arlington Public Schools’ preliminary FY 2018 budget has an $11 million gap in funding after the School Board approved its proposal last night.
The budget now stands at just over $614 million, down from Superintendent Patrick Murphy’s initial plan of $617 million.
County Manager Mark Schwartz’s proposed additional real estate tax hike, in part to help fund schools, would likely make up the shortfall in county funding. The state has also kicked in an additional $78,000 to help with construction projects.
“What we’ve done with our budget is taken it to the point where it fits with what the county manager has proposed to the County Board,” said School Board vice chair Barbara Kanninen. “We’re looking at the county manager’s proposal as his sincerest effort to do what’s needed at the county level. We hope the County Board sees it that way.”
During Thursday’s meeting, members found savings by again tweaking the budget plan. Savings include $1.8 million on technology, adding a transportation planner and removing a School Board staff member. Various other job cuts would only take effect if the County Board does not provide the extra money.
Board members emphasized that the savings on technology do not relate to the controversial one-to-one policy of giving each elementary student an iPad. Leslie Peterson, assistant superintendent for finance and management services, said that instead the savings have come through looking at the school system’s procurement of contracts.
School Board member Reid Goldstein said staff and elected officials have worked tirelessly to bring the funding deficit down from more than $20 million. He said that even with the efficiencies found, the budget plan balances educating students with fiscal responsibility.
School Board members presented the budget plan to the County Board earlier today. The County Board is set to adopt its budget and tax rates on April 22.
The following letter was sent to members of the County Board, ARLnow.com and other community organizations by Bluemont resident and local activist Suzanne Smith Sundburg, who says the proposed tax rate hike is regressive and unnecessary. Arlington County is in the midst of its annual budget process.
Dear Chair Fisette and members of the Arlington County Board,
Meaningful discussion of revenue (the real estate tax rate) without any discussion of expenditures (the budget) makes little sense, as these two items are inextricably linked.
For FY18, the effective advertised real estate tax-rate (assessment increase + 2-cent rate increase) is equivalent to a 4-cent hike in the real estate tax rate. Over the past decade, Arlington County homeowners, commercial property owners, and renters have been asked to shoulder ongoing increases in the tax and fee burden.
With a 2-cent increase, the average homeowner would see the tax and fee burden rise from $8,305 in calendar year (CY) 2016 to $8,613 in CY 2017 — a 4% increase, or about $492 — and will have absorbed a cumulative, 5-year increase of $1,613 in additional taxes and fees (CY 2013-CY 2017).
Commercial property owners (and the businesses that rent from them) face an even greater burden with the 12.5-cent transportation surcharge and (where applicable) BID assessment.
At a March 9 budget work session with the commissions, the manager agreed that real estate tax increases are passed through to commercial office tenants and that taxes are one driver of the county’s stubbornly high vacancy rate. However, he could point to no specific data or recent analysis predicting the impact of a 4-cent (or lesser) effective tax-rate increase on Arlington’s vacancy rate.
Likewise, in answer to another question on March 9, the manager also agreed that raising the real estate tax rate would increase the cost of housing for the county’s affordable housing community — even as the county is simultaneously subsidizing this cost. Increases in Arlington’s tax and fee burden makes housing less affordable for all Arlingtonians, and this burden disproportionately affects those living on lower and fixed incomes, including elderly and disabled residents.
Given the large amount of cash on hand, as outlined below, it would seem highly likely that the manager could (with Board concurrence) cover all new proposed spending by reallocating a small portion of these funds to cover limited-duration and nonrecurring expenditures in the general fund budget rather than raising the tax rate for FY2018.
Using cash already on hand, the manager’s proposed budget could be funded without any spending cuts or a tax-rate increase. I therefore urge the Board not to increase the tax rate and to ask the manager to identify expenditures that are appropriate for alternative cash funding and to trim any unnecessary spending, using public money efficiently and effectively to minimize the need for future tax increases (or spending cuts). Below the list of several sources of cash on hand, I have identified a few cost savings and efficiencies as well.
CASH ON HAND
- $191.2 million — Fund Balance. (See Exhibit 3, FY16 CAFR.) I am not asking the board to tap the county’s 5% operating reserve of $58 million or similar required reserves. There is a great deal of money in the fund balance beyond required reserves. Since FY09, the county has been carrying an unspent fund balance of at least $100 million. (See Exhibit 5, FY09-FY16 CAFRs.) Since FY06, the fund balance has generated a net positive surplus, even at the height of the real estate crash when revenues were $72 million less than expenditures.
Thus, over the last decade the county historically and consistently has taken in more money than it has spent. FY18 will likely continue this trend as the manager has presented a “balanced budget that continues the current level of service within existing tax rate” of $0.991 per $100 of assessed value.
- $77.7 million — APS reserves. APS has its own $77.7 million cash reserves (on top of county reserves), which are defined/described in the superintendent’s FY18 proposed budget. The superintendent has set aside approximately $24 million in cash for “future budget years,” $19 million of which is unallocated and presumably will be carried over into FY19.
- $157 million — Transportation Capital Fund. (See Exhibit X, FY16 CAFR.) The TCF is expected to generate another +/-$26 million in revenue in FY18. On March 9, the manager confirmed to me that at least some of the 1-cent proposed increase for Metro could alternately be funded by TCF dollars. When we know that borrowing costs are likely to rise, why would we want to float more new bonds than strictly necessary, particularly when we have so much unspent money in the TCF?
Surely out of a $1.24 billion budget, the county can find $14.8 million in limited-duration and nonrecurring expenditures that could be otherwise funded from cash already on hand. If it’s a choice between making cuts and finding expenditures that qualify for an alternative funding source(s), my guess is that the county’s departments will be able to provide a list of items that would qualify.
Numerous Arlington residents spoke out last night against the County Manager’s “optional” proposed cuts to lessen a planned tax increase.
The County Board’s public hearing Tuesday saw opposition to suggested cuts to the Lee Highway Planning Initiative, snow removal from trails and the Glencarlyn Library among other programs.
County Manager Mark Schwartz proposed a $1.2 billion budget for FY 2018 that includes a tax increase of 2 cents per $100 of assessed value. One cent apiece would go towards Arlington Public Schools and Metro’s increased funding needs.
After direction from County Board members, Schwartz produced a version that would only have a 1-cent increase and cuts elsewhere to make up the difference.
But the suggested cut to funding Lee Highway planning — which would shelve the project until further notice — brought strong opposition from residents and business owners. Under the $500,000 budget cut, the Lee Highway Alliance, a grassroots partnership that looks to improve the quality of life along the corridor, would lose all $60,000 of its county funding, according to speakers.
“The Lee Highway Alliance is the Arlington way: it’s a grassroots effort that sprung up as we realized the need for planning in this corridor,” said Karen Kumm Morris, a representative of the Rock Spring Civic Association.
“A good idea is meaningless without the courage to act,” agreed Sandi Chesrown, an executive board member on the Waverly Hills Civic Association.
Also coming under fire was the plan to cut the Glencarlyn Branch Library’s days of operation from six to two, but it brought one of the two-hour hearing’s lighter moments.
Jeffrey Liteman, representing the Glencarlyn Civic Association, first unfurled a 20-foot petition signed in opposition to the planned cuts. He then sang and played guitar in support of the library, backed by other attendees holding signs behind him.
“It’s the heart of the community, two days are not enough,” he sang.
Members of the county’s Community Services Board advocated for various budget requests, including new case managers for those with developmental disabilities, six placements in a mental health group home and a $75,000 study to determine services for young adults on the autism spectrum.
Among the other topics discussed Tuesday night:
- Arlington Public Schools and the need to fill the approximately $13 million funding gap between Schwartz’s plan and Superintendent Patrick Murphy’s proposed $617 million budget.
- Various solutions to increase the county’s affordable housing stock, including more funding for housing grants and a higher zoning fee for apartment developers.
- Funding for the county’s streetlight repair program, which is in line to receive a big boost under Schwartz’s proposed budget but not under his optional cuts.
- Opposition to an optional cut to the $50,000 program that removes snow from local trails with the same priority as street snow removal.
- The financial literacy program within the Virginia Cooperative Extension and permanent county funding for the financial education program associate position to run it.
Earlier this month, opinion columnist Mark Kelly suggested that Schwartz’s optional cuts were purposefully unpalatable, “designed to make taxpayers believe there are few desirable options when it comes to trimming the budget.” Schwartz, in a statement, said making budget cut recommendations “is always difficult, particularly given the growing demands and potential impacts on our community.’
The County Board will return for another public hearing tomorrow night, this time about the proposed tax rate and fee hikes. The budget is slated for final adoption on April 22.
President Trump’s first budget proposal and its ramped-up defense spending could help Arlington’s economy, according to experts, but local lawmakers worry that cuts elsewhere in the federal government could hurt.
Trump’s budget blueprint for fiscal 2018, entitled “America First: A Budget Blueprint to Make America Great Again,” calls for $54 billion in additional defense spending.
The budget plan would cut federal funding to a swath of programs to help offset the increased defense spending, including a number that help lower-income residents.
That would likely mean a spending boon at the Pentagon, which has approximately 25,000 military and civilian occupants daily.
In addition, defense contractors based in the county could see more work go their way, as well as the Defense Advanced Research Projects Agency, an Arlington-based Department of Defense agency.
Frank Shafroth, director of the Center for State and Local Government Leadership at George Mason University’s Schar School of Policy and Government, added that DARPA work can be just as lucrative. DARPA “often subcontracts up to $7 for every dollar spent in house,” Shafroth said.
Sen. Mark Warner (D-Va.) said the effects of decreased defense spending under President Obama, the result of the federal budget sequester, must be tackled but not in this way.
“We should be serious about addressing the fiscal issues in our country and work together to address the impact that the across-the-board spending cuts have had on the military and our national security,” Warner said in a statement. “However, the roadmap the President has laid out does not meet those goals.”
Of concern in Arlington is reduced spending on the State Department, which operates three D.C.-area field offices in Arlington. Trump’s plan would cut $10.1 billion from State and the U.S. Agency for International Development. That cut could force the closure or downsizing of those field offices, which handle security and investigations among other roles.
“Budgets show us a President’s priorities, and based on what President Trump released today, I’m concerned that he’s continuing to push policies that would hurt Virginians,” Sen. Tim Kaine (D-Va.) said in a statement last week. “While I support the Administration’s commitment to investments in defense, deep cuts to the State Department jeopardize our national security.”
“President Trump wants to spend more on defense and border security while making huge cuts to what they defend: our people, our health, and our environment,” he said. “These extreme cuts will hit my constituents particularly hard, including many federal workers at the State Department and Environmental Protection Agency. But their pain will be felt across the entire country.”
Any gains on the defense side may be offset by losses elsewhere, as Trump’s budget plan seeks to shrink the federal workforce. With a hiring freeze already in place, further cuts could be coming.
Analysis by the Stephen S. Fuller Institute at GMU found that Northern Virginia could lose as many as 3,600 federal jobs, under the assumption that between 5.4 and 6.6 percent of all federal jobs in the region are lost.
And the analysis found that any gains in DoD and other departments may not be enough to lessen the impact of losses elsewhere.
Despite others’ gloomy predictions, Shafroth said he is optimistic that Arlington can weather any storms, given how central it is in defense spending.
“On net, especially given the serious situation with North Korea, I believe there will be major job disruption, but, at the end of the day the county’s critical role in national defense and the very large increase in federal spending will lead to disruption, but close to a net overall wash,” he said.
Flickr pool photo (top) by Michael Coffman
Arlington County Manager Mark Schwartz has proposed a series of budget cuts to halve his proposed two cent tax increase to one cent.
The cuts to Schwartz’s proposed budget total $11.1 million and include everything from a multi-million dollar reduction in school funding to a reduction of hours at the Glencarlyn library and the elimination of a management intern position in the parks department.
From a county press release:
The potential reductions would affect a range of County services, including Human Services, Libraries, Parks and Recreation, Community Planning and Housing and Economic Development. The options also include eliminating both planned service improvements in the streetlight program and additional staff for the County jail. Schwartz also recommended that, based on the principles of revenue sharing between County Government and Arlington Public Schools (APS), $3.5 million of the cuts from the on-going budget and $1.7 million of the cuts from the one-time budget come from the APS budget.
The Arlington County Board advertised Schwartz’s recommended two cent tax rate increase but also asked him to recommend some budget cuts, as an option to consider.
“Putting together budget reduction options is always difficult, particularly given the growing demands and potential impacts on our community,” Schwartz said in a statement. “The package makes no change to the additional resources committed to Metro. Since we presented our Proposed Budget on Feb. 25, jurisdictions are facing a Metro funding deficit that may grow even larger.”
Under the advertisement, the Board cannot raise the property tax rate more than two cents for every $100 in assessed value this year. (At last month’s meeting, Board members Libby Garvey and Christian Dorsey proposed, unsuccessfully, setting the advertised rate three cents higher than the current $0.991 for every $100.)
The Board will hold public hearings on the budget and the tax rate on March 28 and March 30, respectively. Final adoption of the budget is scheduled for April 22.
Gutshall Running for County Board — As predicted, business owner Erik Gutshall is running for County Board this year, seeking the seat being vacated by Jay Fisette. Gutshall says on his website that his candidacy will be announced at the Arlington County Democratic Committee meeting on Wednesday. Gutshall unsuccessfully challenged County Board member Libby Garvey in last year’s Democratic primary. [Erik Gutshall for County Board]
Oscars Flub Involved W-L Grad — Warren Beatty is back atop the national consciousness, after an envelope mix-up led to perhaps the worst mistake in Oscars history, with Beatty and Best Picture co-presenter Faye Dunaway at the center of the fiasco. As many long-time Arlingtonians remember, Beatty spent his teenage years in Arlington, reportedly living on N. Huntington Street. He graduated from Washington-Lee High School and, as noted in a yearbook photo, was a star football player and the senior class president. [InsideNova]
Arlington Elementary Schools Top Rankings — In new rankings of D.C. area public elementary schools, Arlington elementary schools tallied a sweep of all the top 10 spots. [Niche, Washington Business Journal]
ACPD Trying Out Uber Lane — This past weekend in Clarendon, the Arlington County Police Department set up a designated rideshare pickup lane to improve safety for those using Uber and Lyft to get a ride home from the bars. The police department described the action as a “pilot program” that was the result of “creative problem solving.” [Twitter]
Arlington’s ‘Segregation Wall’ — A new historic marker notes the significance of a 1930s-era wall in north Arlington. The wall was built by white residents of the Waycroft-Woodlawn neighborhood to provide a physical barrier between them and the historically black Hall’s Hill (High View Park) neighborhood. [InsideNova]
Loan for Affordable Apartments Approved — The Arlington County Board on Saturday approved a $7.4 million loan to help build 125 new affordable apartments at the Berkeley on S. Glebe Road. Nonprofit developer AHC is expected to seek another loan for the redevelopment, from the county’s affordable housing fund, next fiscal year. [Arlington County]
Per-Student Spending to Rise — Under a new budget proposed by Arlington Public Schools Superintendent Dr. Patrick Murphy, per-student spending would rise 2.9 percent to $19,521. APS has been straining to keep up with rising enrollment, issuing bonds to build new schools and renovate others. [InsideNova]
Flickr pool photo by Erinn Shirley
County residents could see a property tax hike of up to 2 cents per $100 of assessed value after the Arlington County Board voted Saturday to advertise the possible maximum increase.
County Manager Mark Schwartz said the hike would pay for what he described as the “extraordinary circumstances” facing the board in increasing costs for Arlington Public Schools and the Washington Metropolitan Area Transit Authority.
Under the 2-cent rise, APS and WMATA would each receive half of the added tax revenue. The average tax and fee burden for residential properties would increase by around $300 a year, factoring in a rise in property assessments, while the residential property tax rate would reach $1.011 for every $100 in assessed value, the highest rate since 2001.
Board members approved the measure by a 3-2 vote, with Libby Garvey and Christian Dorsey voting against. The vote included a proposal by board member John Vihstadt to request that Schwartz explore alternative budget options if property taxes increase by only 1 cent.
But both Dorsey and Garvey criticized Vihstadt’s plan, saying it was “too late in the game” to be introducing such a proposal.
“I totally support the whole idea of exploring these alternatives, but the way we do it now by rolling it into this action, we’re changing the budget process,” Dorsey said.
Board chairman Jay Fisette said that Schwartz’s proposal is just the beginning of talks about the county’s budget.
“Today we received the manager’s proposed budget, and we set the maximum tax rates and fees that we can consider,” Fisette said. “Now the responsibility shifts to us. This is the start of the Board’s conversation with the public about priorities for fiscal 2018. For the next nearly two months, we will be scrubbing the manager’s proposed budget and listening to the community.”
The proposed $1.2 billion fiscal 2018 budget includes $759.3 million in the county operations budget, a 3.9 increase over fiscal 2017. Also proposed are increases in household solid waste rates, a water/sewer rate increase, a new accessory homestay permit fee of $60 for those who use online booking platforms like Airbnb and various parks and recreation program fee changes.
Schwartz said APS faces challenges around its growing enrollment, which he said grows by approximately 1,000 students each year. His budget would include $478.3 million funding for the school system, an increase by $11.1 million.
“Simply put, Arlington Public Schools is facing an enrollment tsunami,” Schwartz said. “Each year, they have additional students come; whether they want them or not, additional students show up and they need to be be educated.”
Metro represents another fiscal stumbling-block for the county, as well as the region at large. Currently, Schwartz said, Arlington pays 8 percent of the agency’s total operating costs, to the tune of $56 million.
Metro general manager Paul Wiedefeld proposed all jurisdictions increasing their subsidy, with its fiscal 2018 proposal asking that Arlington increase its subsidy to around $71 million.
That subsidy would be funded in part by state transit aid, staff reductions at WMATA, gas tax funding and money from the Transform I-66 project. It would leave a gap of approximately $6 million, with the additional penny of real estate tax adding $7.4 million.
The board will hold a series of budget work sessions next month, then public hearings on the budget and the tax rate on March 28 and March 30, respectively. The latter will include discussion on members’ possible pay rises. The board is expected to adopt the budget on April 22.