How are schools funded in Virginia?  

Pillar Three of the Mayor Avula’s Mayoral Action Plan supports Thriving Families, where every child has the chance to succeed.  

In a city in which over one in four children live in poverty, and which still bears the legacies of racial segregation, supporting quality public education is one of the most important things the City of Richmond can do. For many young Richmond residents, their Richmond Public Schools education is the most significant opportunity they will ever have to develop their potential and build a positive future. 

In Virginia’s system of government, funding of schools is a shared responsibility between the Commonwealth of Virginia and localities. The Standards of Quality, or SOQ , is the primary stream of state funding for local public education which is governed by the Local Composite Index (LCI) formula. Each county and independent city in Virginia is assigned an LCI index score, intended to reflect a locality’s fiscal capacity to fund public education.  

Problems with the LCI have long been studied and recommendations to address them have been made, but not taken up. Unfortunately, the component parts of the LCI formula measure wealth (the property tax base, adjusted gross income, and retail sales) rather than poverty. That means that the City of Richmond is classified as a locality with relatively high fiscal capacity. In fact, Richmond's current LCI of .58 is the highest in Central Virginia. This means Richmond is expected by the state to meet 58% of SOQ-mandated funding, compared to 43% in Henrico and 36% in Chesterfield. Richmond currently has 28% of its children living in poverty , compared to 11% in Henrico and 9% in Chesterfield.  

The LCI formula impacts the funding Richmond receives from the state to fund school needs by millions of dollars, year after year.  

Richmond does benefit from a second funding stream, the “At-Risk Add-On,” intended to provide support for localities with higher economic need. Increases in At-Risk Add-On expenditures is one strategy for mitigating the inequitable impact of the LCI on the City of Richmond.  

Equally important, the Commonwealth of Virginia has historically underfunded public education. A 2023 Joint Legislative Audit and Review Commission (JLARC) report found that school funding per student in Virginia was 14% lower than the fifty-state average. As explained below, these are promising efforts to move state funding in the right direction. 

A decade of increased local investment  

In recognition of these challenges, the City of Richmond has not waited for state policy to change or state funding for public education to significantly increase.  

In FY 2017, the City of Richmond’s contribution to Richmond Public Schools was $151.5 million, accounting for about 41.6% of RPS operational funding and about 21.1% of the City’s total General Fund budget. In FY 2026, the annual City of Richmond contribution to Richmond Public Schools is $248.9 million, accounting for about 47.5% of RPS operational funding and approximately 23.6% of the City’s total General Fund budget.  

• This increase over a nine-year period was, controlling for inflation, some 22%. The City allocation to RPS increased 64% from 2017-2026, compared non-RPS items in the city budget which only increased 43%. 
• The City's contributions to RPS grew over 60% faster than State contributions over these years.
• Per student City funding increased even more rapidly in this period. The per student City of Richmond contribution to RPS in FY 2017 was $6,322, compared to an estimated $11,487 in FY 2026—a 35% increase, adjusted for inflation. 

By any standard, support of Richmond Public Schools has been a top priority of the City of Richmond over the past decade—and remains a top priority for Mayor Danny Avula.  

This long-term investment has paid off. Richmond Public Schools’ academic outcomes are rising as measured by graduation rates and growth in test scores, and teachers have some of the highest starting salaries in the region. Recent positive trends instill confidence that an investment in RPS is a good investment. 

Building a path forward  

This year Mayor Avula will meet his commitment to increase allocation to Richmond Public Schools at the same rate as overall general budget growth, excluding one-time sources of funding. 

As for every City agency, this coming fiscal year presents a specific, one-time challenge for RPS, as revenue growth is limited this year due to the real estate assessment calendar realignment.  

Under the City’s governance structure, the Richmond School Board has ultimate authority for making difficult decisions in the event total available resources from city, state, federal, and all combined sources fall short of planned expenditures.  

At the same time, Mayor Avula applauds the General Assembly’s efforts to increase the Commonwealth’s commitment to public education. Budget proposals under consideration include increased funding for the At-Risk Add-On, special education, school construction assistance, and other student needs.  

While final funding levels for RPS will remain uncertain until the Commonwealth adopts its FY27-28 budget, proposals from both the House and Senate, including those advanced by Richmond’s delegation, would increase state investment beyond what was proposed in the introduced budget.  

The City is hopeful that these proposals will be realized and encourages residents to advocate for strong support for Richmond Public Schools.  

At the same time, Mayor Avula is committed to taking a consistent and reliable approach to school funding that continues to expand local investment in RPS in a predictable way, while maintaining fiscally responsibility across all core City needs.  

Yesterday, I learned about yet another crash in the City in which a driver hit and killed a pedestrian. Richmond Police Department's Crash Team is actively investigating this tragic incident-the second pedestrian death in just over a week.

It's another heartbreaking loss, and my thoughts are with the family of the victim.

Just this past October, on Halloween, one of the deadliest nights of the year for pedestrians, I gathered with community members, advocates, policy makers, members of the City's transportation teams, RPD, and others to reaffirm our commitment to Vision Zero, the City's goal to eliminate traffic deaths.

Today, in light of this recent tragedy, I am asking my team to identify urgent opportunities to improve safety for residents who walk, ride, or roll on the Southside, while also prioritizing critical Vision Zero policies that require longer-term implementation. We know the strategies that work-lowering speed limits in residential areas, creating high-visibility crosswalks, adding curb extensions, creating more protected bike and bus lanes-and we need to move with urgency and precision to focus our investments in the places they will matter most.

As I shared last week, I have also asked my Chief Administrative Officer to consider immediate actions that can increase safety at the downtown intersection on East Broad Street and 10th where a pedestrian was hit and killed by driver while crossing in a crosswalk. I have spoken with VCU Health leadership, and I know VCU is also committed to addressing these safety issues alongside the City.

Finally, I urge every driver: slow down, put your phone away. We cannot accept traffic deaths as normal. The only way we will achieve the goal of zero traffic-related deaths, is by committing to a culture of safety for drivers, cyclists, and pedestrians, and changing our behaviors to prioritize safety for all.

-Danny

$2 Million to Boost Housing Trust Fund, and 78 New Affordable Housing Units Approved

Richmond, VA -- Mayor Danny Avula today applauded Richmond City Council for approving a series of measures that move the city closer to a Thriving Richmond - strengthening neighborhoods, advancing energy resilience, and expanding access to affordable housing.

$2 Million Boost for Affordable Housing Trust Fund

Leading the list of accomplishments, Council approved ORD. 2025-225, which transfers $2 million into the Affordable Housing Trust Fund. The Affordable Housing Trust Fund supports mixed-income development, rehabilitates blighted properties, and advances housing stability.

"This investment represents the heart of what it means to build a thriving city," said Mayor Danny Avula. "Every dollar we put toward affordable housing is a commitment to stability, opportunity, and equity for Richmond families."

"Every Richmond resident deserves access to safe, affordable housing and a place to call home," says Councilmember Ellen F. Robertson, Richmond City Council, Richmond Gateway 6th District. "Investments like this help ensure we are building a more equitable city where no one is priced out of the community they love."

Council also advanced ORD. 2025-236, authorizing a grant agreement to support Bellevue Gardens, a 78-unit affordable housing development at 3940 Rosedale Avenue in the Northside area of Richmond. The project will include 42 homes for residents earning 0-50% of the Area Median Income (AMI) and 36 homes for those at 50-80% AMI, with completion expected in 2026.

Protecting Renters and Strengthening Neighborhoods

To promote safe and healthy housing conditions, City Council unanimously approved Mayor Avula's ORD. 2025-161, establishing a Residential Rental Inspection Program (RRIP). The Administration will use the next six months to create the policies, procedures and process by which tenants, advocacy groups, and concerned citizens may request a specific parcel or parcels be designated as a Rental Inspection District because rental dwelling units are either blighted, or in the process of deterioration, or in need of inspection by the Building Commissioner to prevent deterioration. ORD. 2025-161 does not itself designate any Rental Inspection Districts. Creating a district requires a separate Council action after review of factors such as building code or health violations, public safety responses, or tenant petitions.

"Safe housing is healthy housing," said Mayor Danny Avula. "This ordinance creates a pathway to ensure that Richmond renters live in homes that meet basic standards of safety and dignity. I look forward to working with CAO Donald and the rest of the team to build a fair, transparent process that protects tenants, supports responsible landlords, and strengthens neighborhoods."

"This is a major step forward in protecting renters," said Councilmember Stephanie Lynch, Richmond City Council, Richmond Central 5th Voter District. "While full implementation will take time and coordination, this is a significant piece of a plan to build stronger, fairer housing for tenants throughout Richmond."

Driving Tourism and Economic Growth

Council also approved ORD. 2025-233 and ORD. 2025-234, authorizing two major tourism development projects under the Virginia Tourism Authority's program:

• A 253-key dual-branded hotel by Shamin Hotels at North Arthur Ashe Boulevard and Myers Street.
• A 95-key boutique hotel by Capital Square at Roseneath Road and West Moore Street.

These investments are expected to generate new jobs, attract visitors, and spur private investment in the Scott's Addition area.

"Scott's Addition continues to be one of Richmond's success stories," said Councilmember Katherine Jordan, Richmond City Council, Richmond North Central 2nd Voter District. "These projects build on that momentum to bring new jobs, new energy, and new opportunities to residents, visitors, and small businesses. I'm thrilled to see investment that drives tourism and strengthens the fabric of our community."

"These projects represent the kind of smart growth that fuels Richmond's economy, strengthens our hospitality industry, and keeps our city on the map as a destination for business and leisure alike," said Chief Administrative Officer Odie Donald II. "Tourism is more than just visitors - it's also jobs and investment aimed at supporting our neighborhoods."

Building a Sustainable Future

With the adoption of ORD. 2025-232, the City will launch a Virginia Energy Resilience Study Fund to support energy planning in the East End through a $10,000 Virginia Department of Energy grant.

Additionally, ORD. 2025-227 authorizes new electric vehicle charging stations on North Arthur Ashe Boulevard, expanding access to clean transportation options.

"As a physician, as a dad, and as Mayor, I see every investment in sustainability as an investment in public health," said Mayor Danny Avula. "Energy resilience, EV access, and cleaner air are how we build a future-ready city that's thriving for generations to come."

"The Office of Sustainability is working hard at bringing RVAgreen 2050, the City's Climate Equity Action Plan, to life. Council's adoption of these ordinances helps move that vision forward, and we're proud to share that 28% of the plan is already complete. Richmond is truly thriving as we build a more sustainable and resilient city, said Laura Thomas, Director of the Office of Sustainability.

Getting Things Done

Council also passed measures that make City operations more effective and responsive, including:

• ORD. 2025-222 - updating towing and storage fee limits for greater clarity and consistency.
• ORD. 2025-237 - renewing the Enterprise Zone Cooperation Agreement with the City's Economic Development Authority, continuing incentives that drive private investment in key neighborhoods.

"Renewing the Enterprise Zone Cooperation Agreement reinforces our commitment to growing equitable opportunities in Richmond's neighborhoods," said Angie Rodgers, Director of Economic Development. "These incentives continue to be a powerful tool for attracting private investment, strengthening commercial corridors, and ensuring that our communities benefit from long-term economic growth."

Richmond, VA - Today, Mayor Danny Avula announced plans to expand access to affordable housing by adding $2 million to the City's Affordable Housing Trust Fund (AHTF). To make this investment, Mayor Avula will introduce a budget amendment transferring $2 million from the Delinquent Sales Tax Special Fund into the AHTF. This new investment would bring the City's FY 26 Affordable Housing Trust Fund allocation to $15 million, building on the $13 million already being deployed in this fiscal year.

The Delinquent Tax Sales Special Fund holds proceeds from the sale of properties with unpaid real estate taxes. Under Virginia State Code §58.1-3965, properties may be sold for delinquent real estate taxes when those taxes are delinquent for two years or one year if the property has been condemned, deemed a nuisance or derelict, or has been declared blighted.

This investment reflects the Avula Administration's Thriving Neighborhood pillar - an ongoing commitment to ensuring Richmonders at every income level can access safe, quality housing in neighborhoods with strong public amenities.

"Everywhere I go, Richmonders tell me how urgently we need more affordable housing. I support that wholeheartedly, because this incredible city should be a place where people at every income level can access safe, quality homes in neighborhoods with strong public amenities," says Mayor Danny Avula."

"We continue to make strides on addressing affordable housing, and this step is an important one. The people of Richmond want and deserve affordable housing, and I will continue to advocate for housing as a top priority," says Richmond City Councilmember Ellen Robertson.

"I appreciate the leadership of Councilwoman Ellen Robertson over many years in fighting for greater investments in affordable housing," added Mayor Danny Avula. "I look forward to continued partnership with Ms. Robertson and all of City Council as we work to move forward this shared priority."

Richmond must be a city where every resident should feel safe accessing city services, reporting crimes, and engaging with local government - regardless of immigration status. The recent ICE activity is deeply concerning. It undermines the trust that is essential between law enforcement and the communities they serve. As an immigrant myself, I am extremely mindful of the fear and uncertainty such actions create.

Richmond does not and will not coordinate with ICE on deportation. RPD Chief Edwards and I are in lockstep in our support of local communities, and the Richmond Police Department has not signed a 287(g) agreement with ICE. Our officers are here to protect our neighborhoods, not to enforce federal immigration policies.

Additionally, while RPD relies on License Plate Reader technology to quickly solve major local crimes, they are committed to a transparent and safe use of this data. Flock has a 21-day data retention policy, after which all of the data is deleted. The Richmond Police Department will not share Flock data with other federal agencies and now performs regular audits of accounts to ensure no one has unintentional access.

Here's what we will do:

• We will continue to provide residents with information about their Constitutional rights and direct folks to private law firms and service providers through our Navigation Services and trusted community partners.
• I will continue to do everything within my power to protect and support Richmonders - no matter where they come from, because our strength comes from the diversity, resilience, and contributions of all who call it home.
• Finally, I will commit to meeting with the families of residents detained, to see, first-hand, the impacts on our communities.