Mayor Avula Introduces FY27 Balanced Budget Focused on Strong City Operations, Thriving Neighborhoods, and Opportunity for Richmond’s Children and Families
Proposed $3.4 billion budget invests in City workforce, housing affordability, Richmond Public Schools, and neighborhood economic growth
Richmond, VA — Today, Mayor Danny Avula presented his proposed Fiscal Year 2027 (FY27) budget to the public and Richmond City Council, outlining investments across the four priority pillars of his Mayoral Action Plan: A Thriving City Hall, Thriving Neighborhoods, Thriving Families, and Thriving Economies.
The proposed budget prioritizes strengthening City operations, expanding housing affordability, supporting Richmond Public Schools and families, and creating economic opportunity across the city while maintaining fiscal responsibility during a more constrained financial environment.
“Richmond’s future depends on a city government that works — one that delivers results for residents, strengthens neighborhoods, supports families, and creates real opportunity,” said Mayor Danny Avula. “This budget continues the work we began over the past year: building a high-performing City Hall while investing in the people, places, and partnerships that make Richmond a thriving city.”
Strengthening City Hall and Investing in the Workforce
Under Pillar One: A Thriving City Hall, the FY27 budget includes $263.5 million in citywide investments related to collective bargaining, an increase of $22.1 million over FY26, ensuring Richmond honors its commitments to employees while strengthening the workforce that delivers essential services residents deserve.
Key investments include compensation increases for sworn police and fire personnel, salary adjustments for union-represented employees, and equivalent increases for non-union employees performing similar work.
Advancing Thriving Neighborhoods
The proposed budget continues major investments in housing affordability, anti-displacement strategies, and neighborhood safety under Pillar Two: Thriving Neighborhoods.
More than $40 million is proposed to support affordable housing production, housing stability, and public safety improvements, including:
- $11.7 million for the Affordable Housing Trust Fund
- $1.8 million in Affordable Housing Performance Grants
- $1.6 million to advance the next phase of Creighton Court redevelopment
- $450,000 to support the transformation of Gilpin Court
- $10.1 million in anti-displacement programs such as eviction diversion, Right to Counsel services, and tax relief for older adults and residents with disabilities
- $15.6 million for renovation and safety improvements to the John Marshall Courthouse
These investments help ensure more homes for more people and more ways for residents to stay in the neighborhoods they love.
Supporting Thriving Families and Richmond Public Schools
Under Pillar Three: Thriving Families, the proposed budget includes $257 million for Richmond Public Schools, almost a quarter of the general fund, and an $8.2 million increase over FY26. The budget also proposes $9.3 million to address immediate capital maintenance needs for critical infrastructure repairs and facility upgrades maintain safe and functional learning environments.
The budget also proposes nearly $3 million in additional investments supporting children and families, including funding for childcare assistance, after-school programming, youth development initiatives, and school-based supports that connect students and families to critical services. To continue advancing gun violence prevention efforts, Mayor Avula’s budget proposes $644,000 to support immediate crisis intervention and trauma-informed services, plus additional support for the We Matter RVA Gun Violence Prevention Initiative.
Strengthening Richmond’s Economy
Through Pillar Four: Thriving Economies, the FY27 proposed budget includes more than $5 million in investments to support small businesses, neighborhood commercial districts, and economic opportunity.
Key proposals include:
- $4.9 million for Economic Performance Grants to support job-creating development projects
- $250,000 for commercial façade improvement grants for neighborhood businesses
- $125,000 to support the establishment of a Carytown Business Improvement District
These investments aim to strengthen the small businesses, artists, entrepreneurs, and neighborhood corridors that power Richmond’s economy.
Building the Next Chapter for Richmond
Mayor Avula emphasized that the FY27 budget reflects both progress and long-term vision as Richmond approaches the nation’s 250th anniversary.
“The choices we make today shape the next chapter of Richmond’s story,” Avula said. “This budget continues the work of building a city where government works well, neighborhoods thrive, families are supported, and opportunity reaches every corner of our community.”
Mayor Avula’s proposed FY27 budget will now move to Richmond City Council for review and consideration.
