Mayor Danny Avula presented his proposed Fiscal Year 2027 budget to the public and Richmond City Council on Mar. 12, outlining a $3.4 billion plan focused on strengthening city operations, expanding housing affordability, supporting Richmond Public Schools, and creating economic opportunities across the city.
The proposal comes as the city faces a more constrained financial environment but seeks to maintain fiscal responsibility while investing in key areas that impact residents’ daily lives. The budget is structured around four pillars: A Thriving City Hall, Thriving Neighborhoods, Thriving Families, and Thriving Economies.
Under the first pillar, the budget allocates $263.5 million for citywide investments related to collective bargaining—an increase of $22.1 million over the previous year—to honor commitments to employees and strengthen essential services. This includes compensation increases for police and fire personnel as well as salary adjustments for union-represented and non-union employees performing similar work.
For neighborhoods, more than $40 million is proposed to support affordable housing production, stability programs such as eviction diversion and tax relief for older adults and residents with disabilities, redevelopment projects at Creighton Court and Gilpin Court, and safety improvements at John Marshall Courthouse. These measures are intended to help residents remain in their communities while improving neighborhood safety.
The third pillar focuses on families and education with $257 million earmarked for Richmond Public Schools—nearly a quarter of the general fund—and an additional $8.2 million over last year’s allocation. The plan also includes nearly $3 million in new investments for childcare assistance, after-school programming, youth development initiatives, school-based supports connecting students with critical services, and gun violence prevention efforts such as crisis intervention services.
Economic growth is addressed through more than $5 million in investments supporting small businesses and commercial districts. Proposals include grants for job-creating development projects, façade improvement grants for neighborhood businesses, and funding to establish a Carytown Business Improvement District.
“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.” He added: “The choices we make today shape the next chapter of Richmond’s story… 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.”
The proposed FY27 budget will now move forward to Richmond City Council for review.
