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rlington County’s revenue from real‑estate and consumption taxes fell $13 million short of projections in the first four months of the fiscal year that began July 1, according to County Manager Mark Schwartz. The shortfall, combined with higher‑than‑expected spending elsewhere, has forced the county to slow capital projects and postpone bond sales. “We’re about $8 million below the levels assumed when the Board approved the 2026 budget in April,” Schwartz said, noting that this is the first time in his 20 years of service that the county has faced such a gap.

    Real‑estate revenue is down roughly $5 million from estimates, and officials are bracing for possible federal cuts to state and local funding. “It’s uncertain what will happen, but we should expect additional impacts,” Schwartz told Board members. The county is also dealing with rising costs for social‑safety‑net programs and overtime for public‑safety and healthcare workers. For fiscal 2027, the plan is to hold discretionary spending back and slow hiring, though not freeze it entirely.

    The Board’s December 16 guidance for the 2027 budget allows for tax increases, including a higher real‑estate rate, but emphasizes closing gaps primarily through cuts. Schwartz is expected to submit a budget proposal in February, likely exceeding the $1.69 billion 2026 spending plan.

    In a separate event, Board member Takis Karantonis was sworn in for a new four‑year term after winning the November 4 election against a Republican and three independents. He had first filled the seat of the late Erik Gutshall in 2020 and won a full term in 2021. At his oath, Karantonis pledged the county would support those affected by the weakening regional and national economy, stressing the need to remain a place of opportunity and to welcome future builders. He served as Chair in 2025 and will hand the gavel to the next Chair in early January.

    Auditors for the county and Arlington Public Schools are set to increase collaboration in 2026. Wayne Scott (county) and Alice Blount‑Fenney (schools) held their first quarterly roundtable in November, with the Department of Management and Finance joining the discussions. This marks the first time all three parties will meet together. Audit Committee member John Vihstadt welcomed the initiative. Scott also announced that 2026 will introduce public‑comment periods at Audit Committee meetings, though details such as speaker limits, time allocations, and agenda placement remain to be finalized. He joked that without limits, the meetings might end with breakfast served before the agenda was finished.