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The Board also adopted rank choice voting for this fall's general election last Saturday. I voted in favor as rank choice voting can be a tool to better reflect the majority of our population's views. For context, we used rank choice last year in the general election and used it in the primary elections in 2023 and 2024. I believe more education is needed, so I am committed to work with Board Member JD Spain to fund such education. Investing in our civic life is critical. Read our summary and click on the link in it to learn more: February 2025 Arlington County Board Meeting Wrap-up
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Go to 10 hours, 13 minutes and 19 seconds to watch the County Manager's Presentation of the Budget. 10 minutes will give you a sense of this.
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Last but certainly not least, I moved that the Board advertise an increase in real estate tax rate this year out of caution with respect to the impacts of the Administration's actions. I want to be clear with you about the process and why I made this motion. On process, this is not final; it is only a first and precautionary step in case this Administration causes several economic problems before April 9th.
I am very mindful that many federal employees in Arlington are particularly anxious about real estate tax bills this year, so I am unlikely to support any real estate tax rate increase in our final budget. However, the Trump Administration is proposing significant cuts to Medicaid and, in addition to the approximately 24,000 in Federal employees we have in Arlington, we also have about 25,000 people who are low-income, living over the past tax year on less than $50,000 in household income.
I voted to advertise the 1 cent increase in our rate to make sure we have the resources we need to help those most in need in the short term if Trump cuts more than half of the $88 million we receive in Federal aid, a remote possibility, but one I believe we must be able to handle if it happens. To see in one slide some of the reasons why I voted to advertise the 1 cent, go to slide 5 of this link: PowerPoint Presentation
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The proposed budget cuts 44 positions--we are being fiscally responsible in addition to morally responsible in making sure we can care for those most in need. There are other reductions that I believe are in line with Arlington's ideals in this very difficult time. We also now have 12 work sessions over the coming months to look at what we need to do to align our budget that starts July 1 with our values and our fiscal reality.
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Two additional aspects of the proposed budget are worth mentioning. First, the proposed budget would add $11.5 million in funding to our economic stabilization reserve, essentially taking one-time funding that historically has gone primarily to our affordable housing investment fund and putting it in a contingency that we would use later this year to address the impacts of the foolish and inhumane actions of this Administration.
I agree with this step, much as I agree it is unfortunate with respect to the critical priority of affordable housing for development that is our AHIF (Affordable Housing Investment Fund) program. We have immediate needs we must address this year and later in the year we can see if some of that funding can go toward AHIF.
The funding of $11.5 million from this year would take our overall stabilization to $33 million, which is a significant portion of the $88 million in Federal funding we receive every year. As a former federal advocate/lobbyist, I do not think we will lose all of that funding this year. However, I am not sure. As a result, the above reasoning on advertising the 1% real estate tax increase is, in my view, the prudent step at this time, until we can analyze before April 9th, the federal and economic environment we may be in over the next 15 months.
Second, a 1% increase in our meals tax, which would align us with Alexandria as far as our rate. This step would enable us to fund services that I believe are critical for Arlington: eviction prevention, housing for our housing grant program and homeless response services, investing in our employees including our police, fire, sheriff's office, and County employees, as well as other critical investments that I believe we should do to adhere to Arlington's values in this very difficult moment.
I am mindful of the needs of our restaurants as they are critical small businesses but ultimately believe that those who can afford to eat out and tourists will bear most of the burden. They are no easy choices this year and this is one I ultimately believe is aligned with Arlington's ideals.
Thank you for reading and allowing me the honor of serving you,
Matt
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