05/19/2025
Colonial Beach Budget Reality Check
As most Colonial Beach citizens are aware, the town staff and council are in the final stages of creating the FY 2026 budget. It’s a daunting task to be sure. Many citizens have voiced their opinions, oftentimes in opposition to any and all tax increases. The trendy saying is: “We don’t have a revenue problem we have a spending problem”. There’s some truth to that but read on.
The first fact everyone should understand is this:
In an environment where costs are increasing for virtually everything, the town staff brought us a draft budget that had an overall reduction in General Fund spending of roughly $115,000 – were it not for a $181,000 increase in the state mandated contribution to Colonial Beach Public Schools (CBPS). To get to that level of cost reduction, staff shrank spending in dozens of categories, eliminated or deferred multiple open staff positions, and even removed any cost-of-living (COLA) increase for themselves and their teams.
On Wednesday evening (May 21st) based on additional suggestions from council, there will be even more spending reductions in the draft budget. However, also at the direction of council, that draft budget will include a COLA for town staff. It’s the right thing to do.
Regarding CBPS, this community has repeatedly and passionately voiced their support for continuing to have an independent school system. I continue to be a strong supporter of our schools and the “Drifter Pride” that it brings to our community and I am personally willing to pay my fair share as a taxpayer to support the schools.
But everyone should understand that it is an expensive option that we’ve chosen for ourselves. Here’s what I mean:
In compliance to the state mandate, 30% of our General Fund revenues ($3.3MM of $11MM) comes out of the town’s revenues and goes directly to the school system
Real Estate taxes are by far the largest revenue line item in the town budget. ($4.77MM) and 70% of RE tax revenue is consumed by the mandated contribution to the schools – yes, that means $700 of every $1000 you pay in Colonial Beach real estate taxes goes directly to CBPS and not to other town priorities.
As I said above, so long as the community remains committed to an independent school system, I will support it wholeheartedly. I meant it during my campaign, and I mean it now.
However, we cannot continue to shrink the town’s operating budget to accommodate the annual and large increases in the school funding mandate. It is not sustainable. If we want to continue to be unique – one of only two Virginia towns with its own school system – then we must accept that it is going to require increases in financial support.
As always, I am willing to sit down and discuss your concerns face-to-face. If you'd like to do so, reach out to me on my town email: [email protected]
Tom Larson
Council Member, Town of Colonial Beach, VA