The Virginia Commission on School Construction and Modernization reconvened on September 8 for its first meeting since 2022, returning its attention to the significant school facility needs facing communities across the Commonwealth. The meeting included updates on the Commission’s work, state school construction programs, and implementation of Virginia’s newly expanded local option sales tax authority for school construction.
At the outset of the meeting, Delegate Alex Askew was elected Chair of the Commission, and Delegate Shelly Simonds was elected Vice Chair. The Commission subsequently received presentations from the Division of Legislative Services, Virginia Department of Education (VDOE), and representatives of VACo and the Virginia Municipal League (VML). The meeting agenda specifically called for VACo Director of Intergovernmental Affairs Jeremy Bennett and VML Policy Communications Coordinator Josette Bulova to brief members on local referenda to authorize the additional one percent sales and use tax.
Commission Returns to Work
Ryan Brimmer, Lead Senior Legislative Counsel with the Division of Legislative Services, provided members with an overview of the Commission’s history and statutory responsibilities. The Commission is charged with assessing school facility needs, identifying potential funding mechanisms, developing best practices and cost-saving measures, and making recommendations to the Governor and General Assembly. New responsibilities added in 2026 include annually updating the statewide school construction needs estimate and developing a 10-year capital roadmap.
The Commission has played an important role in several major school construction initiatives enacted in recent years, including reforms to the Literary Fund loan program, creation of the School Construction Assistance Program (SCAP), and, most recently, statewide authorization for counties and cities to seek voter approval of an additional one percent local sales and use tax for school construction and renovation.
Christina Berta, Chief Operations Officer at VDOE, followed with an update on school construction assistance and facility initiatives. VDOE reported that the 2026 M-R FIX inventory, which is the Department of General Services Real Estate and Assets Management System, includes 1064 Virginia school buildings that are 51 years old or older, which approximately 55% of all school buildings in Virginia. This underscores the continuing capital challenges facing many localities.
VDOE also reviewed the continued implementation of SCAP. The current biennial budget provides a $519 million investment in SCAP for FY 2027 and FY 2028. For the FY 2026 round, the Board of Education approved approximately $132.1 million for 34 projects in 22 school divisions on August 27.
VACo and VML Highlight Strong Local Interest in New Sales Tax Authority
A major focus of the meeting was the joint presentation by VACo and VML on Virginia’s new statewide local option sales tax authority for school construction.
Bennett and Bulova reviewed the long path to statewide authorization. Halifax County first received standalone authority in 2019, followed by eight additional localities in 2020 and 2021. The Commission itself recommended statewide authority in 2021, beginning several years of legislative efforts that ultimately culminated in enactment during the 2026 Special Session.
The experience of the localities that previously received the authority provided an important backdrop for the discussion. Nine localities had previously been authorized to hold referenda, and all referendum efforts that were ultimately held passed. According to the VACo/VML presentation, the authority has helped support more than 41 individual projects representing an estimated impact of more than $503 million.
The presentation particularly highlighted the remarkable response to the General Assembly’s decision to make the authority available statewide. Forty-seven counties and cities have already approved resolutions placing the question before voters on November 3. That represents approximately 38 percent of the localities newly eligible to use the authority.
VACo and VML also presented Virginia Department of Taxation estimates illustrating the potential significance of the new revenue tool. If approved and implemented in all 47 localities with referenda this year, the additional sales tax is estimated to generate approximately $414.3 million in FY 2026, $423.5 million in FY 2027, and $434.5 million in FY 2028, excluding food and personal hygiene products.
The strong local response demonstrates both the scale of Virginia’s school capital needs and the importance of providing local governments with additional tools to address those needs. Importantly, the legislation does not impose a statewide tax increase. Rather, it gives each community the ability to determine whether the option makes sense locally, with voters having the final say through referendum.
Next Steps for Localities
VACo and VML also outlined the steps that will follow the November elections. If voters approve a referendum, the local governing body must subsequently adopt an ordinance actually levying the additional sales tax. The ordinance must specify its purpose and expiration date and generally take effect on the first day of a month at least 120 days after adoption. A certified copy must also be provided to the Tax Commissioner.
Members of the Commission also raised several questions about how the new authority will interact with long-term school capital financing. One issue discussed was the statutory 20-year cap on the local sales tax, including whether that limitation could affect the ability of localities to structure or refinance bonds for major school construction projects whose debt service may extend beyond the life of the tax. VACo and VML noted that debt service and bond financing could emerge as an important implementation issue as localities begin using the authority, particularly for large projects that require long-term financing. These questions reinforce the need to monitor implementation closely and determine whether future statutory adjustments may be appropriate.
Members also discussed how the authority may operate in connection with school consolidation and regional approaches to school construction. Questions focused on how the financing tool could support projects involving consolidated facilities or partnerships among multiple localities and school divisions. These issues are especially relevant in communities where declining enrollment, aging facilities, or limited local tax bases may make regional or consolidated solutions more practical than replacing individual schools on a one-for-one basis.
Looking ahead, VACo and VML encouraged continued documentation of the authority’s local impact, including revenues generated, projects supported, debt avoided or reduced, and effects on property-tax-supported capital needs. The organizations also recommended continuing to update the Commission on implementation issues, including debt service, the 20-year statutory limitation, bond financing, school consolidation, and opportunities for regional approaches, and identifying any statutory or administrative changes that may be needed as localities begin using the new authority
The Commission’s return comes at an important moment. Virginia has made significant progress in recent years by investing in SCAP, reforming Literary Fund loans, and expanding local revenue authority, but the age and condition of school facilities demonstrate that school construction remains a substantial state-local challenge.
VACo looks forward to continuing to work with the Commission, VDOE, and other stakeholders to build upon this progress and ensure counties have the resources and flexibility necessary to provide safe, modern learning environments for Virginia’s students.
Watch the Commission meeting through the Virginia House video portal
VACo Contact: Jeremy R. Bennett