Economic Impact Report

Billions in Fairfax County Economic Activity Tied to Schools

A report prepared by the Center for Regional Analysis at George Mason University concludes that Fairfax County Public Schools (FCPS), as the largest employer within Fairfax County, contributes $2.2 billion to the Fairfax County economy aFairfax County Public Schools is one of the greatest contributors to the Fairfax County economy. 67 percent of the FCPS payroll goes to residents living in Fairfax County. 51.5 percent of vendors used are in Fairfax County. FCPS generates 2.2 billion in economic activity in Fairfax. FCPS is the largest employer in Fairfax County. Every $1 spent by FCPS in Fairfax county generates $1.2 in Fairfax Economic activity. FCPS annual outlays will support almost 35,000 jobs in Fairfax County. FY 2017 Operations - $2.7 billion: Instructional - 86 percent; Transportation - 6 percent; Facilities Management - 4 percent; General Support - 4 percent. $1.6 billion in combined payroll is recycled and re-spent in support of the local economy. $777 million will be spent on capital improvement from 2017-2021.nd is one of the most important sources of local economic activity.  

FCPS is Fairfax County’s largest employer with approximately 27,200 full and part-time employees accounting for 4.1 percent of the countywide employment base and its budgeted FY 2017 spending in the County will generate $2.2 billion in economic activity accounting for 2.0 percent of the County’s gross county product, making FCPS the second largest source of economic activity in the County following the federal government.

FCPS’ budgeted FY 2017 outlays total $3.0 billion: $178.8 million for capital projects and $2.8 billion for operations including $1.72 billion for payroll and $766.8 million for retirement and health insurance benefits. These outlays are the source of important economic benefits that support a broad base of local businesses and generate additional jobs and income to the benefit of Fairfax County residents.

  • 67% of FCPS’ payroll outlays or $1.15 billion are made to employees residing within Fairfax County and 51.5% of all contractor payments are made to vendors located in or conducting their work in Fairfax County. 
  • FCPS will spend $1.85 billion in Fairfax County during FY 2017, 62% of its total budget. 
  • FCPS’ direct spending in Fairfax County will contribute $2.2 billion to the County’s economy reflecting a multiplier of 1.198 (which accounts for the loss of spending power due to payment of income taxes on payroll earnings as well a leakage of local earnings into regional, national and global economies). 
  • FCPS’s outlays within the Fairfax County economy will support an additional 13,271 full-time, year-round equivalent jobs spanning a broad-base of businesses of which an estimated 57.2% or 7,587 would be located in the County and generate $417.3 million in new personal earnings to the benefit of workers residing in Fairfax County. 
  • FCPS’s annual outlays in Fairfax County will support directly and indirectly almost 35,000 jobs in Fairfax County accounting for 5.3% of the County’s atplace employment in 2016 with a combined payroll (personal earnings) totaling $1.6 billion to be recycled and re-spent in support of the local economy.

Report: FCPS Impact of 2017 Budget