Following the money

Background in two minutes

Each winter the School Board adopts a budget request, and each spring the Board of Supervisors adopts the full county budget, which decides how much of that request to fund. The fiscal year runs from July 1 to June 30.

For fiscal year 2027 the Board adopted about $5.4 billion in total spending. It kept the real estate tax rate at $0.805 per $100 of assessed value, cut the vehicle tax rate to $3.09 for 2026 and $2.94 for 2027, and fully funded the School Board's $105 million increase for a $2.1 billion schools operating budget. It also adopted a $4.3 billion six-year capital plan for schools, roads and parks.

The case for lower taxes

Supporters of recent tax cuts argue that rising home values and data center revenue have let the county lower rates while still funding the schools in full. The real estate rate fell from $0.865 in FY 2025 to $0.805 in FY 2026, and the vehicle rate fell from $4.15 to $3.09.

They also note that large surpluses, $259.6 million from FY 2024 and $194 million from FY 2025, show the county collected more than it needed.

The case for spending more

Others argue that surpluses should go to recurring needs like school staffing and pay rather than one-time projects or rate cuts. In 2024 the Board denied the School Board an extra $2 million, passing along new state money but cutting local funding by the same amount.

Some also warn that relying on data center revenue to keep rates low leaves the county exposed if that growth slows.

What the county actually did

The Board has paired tax cuts with full school funding in recent years, while debating how to use one-time surpluses.

• May 16, 2023County covers up to $13 million school gap from state error Approved
  Adds fund balance money to the FY 2024 school budget after a state funding calculation error.
• Apr 2, 2024FY 2025 budget and six-year capital plan adopted Adopted
  Set the real estate rate at $0.865, one cent lower, and adopted a capital plan of more than $3.5 billion.
• Jul 16, 2024School Board's extra $2 million request denied Denied Vote: 6–2–1
  Passes new state money to the schools but cuts local funding by the same amount, so the school budget does not grow.
• Jan 7, 2025$259.6 million FY 2024 surplus allocated Approved
  Surplus largely from data center revenue goes to capital needs, reserves, $9.76 million for schools and Board projects such as Cascades Library.
• Feb 4, 2025FY 2026 school operating budget adopted Adopted Vote: 6–3
  Adds athletic trainers, a Park View IB expansion and a recovery school, then went to the Board of Supervisors for funding.
• Apr 1, 2025FY 2026 budget: real estate and car tax rates cut Adopted
  A $4.7 billion budget that cut the real estate rate six cents to $0.805 and the vehicle rate from $4.15 to $3.09, and ended the $25 vehicle fee.
• Jan 6, 2026$194 million budget surplus allocated Approved
  Sends FY 2025 surplus funds to reserves, capital contingencies, school employee health insurance and Board priorities.
• Feb 3, 2026LCPS adopts $2.1 billion FY 2027 operating budget Adopted Vote: 7–2
  The School Board's budget request, which the Board of Supervisors later funded in full in the county budget.
• Mar 12, 2026Vehicle tax rate cut to $2.94 for 2027 Approved at markup Vote: Unanimous
  A budget markup motion cut six cents more than the county administrator proposed. Formally adopted with the April 7 budget.
• Apr 7, 2026FY 2027 county budget adopted at $5.4 billion Adopted Vote: 8–0–1
  Holds the real estate tax rate at $0.805, cuts the vehicle tax rate, fully funds the schools' $105 million increase, and raises public safety pay.

Open questions

• How will next spring's FY 2028 budget balance tax rates against school requests?
• What happens to the budget if data center growth slows?
• How much of future surpluses will go to schools?