Prince William County Schools Face Potential $40M Budget Cut

News Clip1:04All Virginia News·Prince William County, VA·5/8/2026

Prince William County Schools face a potential $40 million budget cut due to proposed adjustments in the state's local composite index calculation. These adjustments consider data center revenues, making the county appear wealthier and thus reducing state funding. While some suggest repealing data center incentives could offset the loss, the financial future of local education is uncertain.

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Gov: Prince William County Schools, Virginia Senate
The Virginia Senate is considering budget adjustments that could lead to a $40 million funding shortfall for Prince William County Schools. This potential cut stems from changes in the local composite index (LCI) calculation, which would factor in data center revenues, making Prince William County appear "richer" and reducing its state funding. The school district currently receives about 50% of its budget from the state. According to estimates, if the Senate's budget version passes with the LCI adjustment, the significant cut would directly impact school resources. Some state senators suggest that repealing data center incentives could help offset this loss by allowing the county to collect more revenue, which would then be directed back to schools. However, the financial implications for local education remain a significant concern for the community and school officials.