Today, Mayor Danny Avula outlined key investments in Pillar One: A Thriving City Hall , highlighting how the FY27 proposed budget strengthens the workforce that delivers essential services and supports the Mayor's goal of building a high-performing City Hall . 

The FY27 proposed budget includes an estimated $263.5 million citywide investment related to collective bargaining, representing an increase of approximately $22.1 million over FY26. This estimate includes salary adjustments, negotiated market-based compensation changes, personnel costs, and operational expenses associated with labor agreements. 

Mayor Avula is funding all collective bargaining commitments and providing raises for police, fire, and other union-represented employees beginning July 2026, along with equivalent adjustments for non-union employees performing the same work. 

Pillar One focuses on transforming Richmond’s local government into a model public-sector organization that stewards resources effectively and consistently meets community needs. A City Hall that gets results starts with investing in the people who keep Richmond running every day. 

Some of the key FY27 proposed investments supporting a Thriving City Hall include: 

• Sworn police and fire personnel will receive an average compensation increase of approximately 6.73%, which includes negotiated pay adjustments and step increases effective July 2026;
• Union-represented employees across other collective bargaining units will receive a 3.25% salary increase, consistent with their agreements, effective July 2026;
• Non-union employees performing work similar to union-represented positions will also receive a 3.25% salary increase effective July 2026;
• For other non-union employees, the proposed budget delays a 3% cost of living adjustment until January 2027. 

“Richmond’s success depends on the people who show up every day to keep our city running — from firefighters and police officers to the employees who maintain our infrastructure, support our neighborhoods, and deliver essential services,” said  Mayor Danny Avula . “If we want a City Hall that gets things done, we have to invest in the people who make that work possible.” 

These investments are part of a broader strategy to strengthen City Hall’s ability to deliver results for Richmond residents while building a workforce that reflects Richmond’s commitment to service, accountability, and excellence. 

This preview is part of a series of early looks at how the FY27 proposed budget advances the Mayor’s vision for a Thriving Richmond, including  Thriving Neighborhoods ,  Thriving Families , Thriving Economies , and a Thriving City Hall. 

Mayor Avula will present the full FY27 proposed budget publicly on March 11 at 3:00 p.m . and submit it to City Council for review and deliberation.

For more information about the FY27 budget process, visit FY27 Budget Season | Richmond 

Key investments include more than $5 million to support small businesses, arts and culture, and neighborhood commercial districts  

Richmond, VA -- Today, Mayor Danny Avula outlined a few key investments in Pillar Four: Thriving Economies, including more than $5 million to strengthen Richmond’s economy and support the small businesses, entrepreneurs, and creative communities that bring life to the Richmond. 

Pillar Four focuses on supporting small and minority-owned businesses and employers by expanding access to quality, living-wage job opportunities. It also prioritizes creating pathways for disadvantaged residents to move from poverty to stability and wealth-building, while directing investments to neighborhoods that have historically been overlooked. 

Some of the key FY27 proposed investments supporting a Thriving Economy include: 

• $4.9 million for Economic Performance Grants to support major economic development projects that create jobs, activate underused spaces, and drive long-term economic growth;
• $250,000 for commercial façade improvements to help small businesses invest in storefront upgrades that strengthen neighborhood commercial corridors and attract customers; and
• $125,000 in funding to support a Business Improvement District (BID) in Carytown , strengthening business vitality through cleaner sidewalks, safer streets, and coordinated support for local businesses. 

“Richmond’s economy is powered by the creativity and local pride that shows up in every neighborhood,” said Mayor Danny Avula . “We see it in our small businesses where people gather, in the incredible arts and culture scene that makes our city vibrant, and in the historic buildings that hold so much potential. My proposed investments help us build on those strengths while creating new opportunities for Richmonders and businesses that call our city home.” 

These investments are part of a broader strategy to ensure Richmond’s economic growth is neighborhood-driven and reflective of the entrepreneurship that defines the city. 

This preview is part of a series of early looks at how the FY27 proposed budget advances the Mayor’s vision for a Thriving Richmond — including Thriving Neighborhoods, Thriving Families, and Thriving Economies. 

The full FY27 proposed budget will be presented publicly on March 11 and submitted to City Council for review and deliberation. For more information about the FY27 budget process, visit FY27 Budget Season | Richmond.    

$257 million proposed for Richmond Public Schools, an $8 million increase over FY26, alongside additional investments in children and families to advance Thriving Families 

Richmond, VA — Today, Mayor Danny Avula outlined key investments in Pillar Three: Thriving Families, including $257 million proposed for Richmond Public Schools, an $8.2 million increase over FY26 and the largest allocation for RPS ever. The announcement comes ahead of the full release of his Fiscal Year 2027 proposed budget on March 11.

Pillar Three centers on a simple but powerful commitment: support the education, health, and development of children and families – in and out of the classroom – so that all kids graduate RPS well-prepared for success and connected to opportunities for further learning and career development.  

In 2025, RPS achieved its highest graduation rate since 2016, with over 80% of students graduating.  

“Our children deserve learning environments that are safe, enriching, and full of opportunity,” said  Mayor Danny Avula . “This budget invests in the full ecosystem around our young people — strong schools, caring adults, and the programs that help students learn, grow, and thrive beyond the school day. We’ve seen the amazing outcomes that happen when you couple resources with dedicated caregivers, educators, and staff. Let's keep it going, RPS!” 

In addition to the proposed operational funding for RPS and a Capital Improvement Plan (CIP) allocation for school facilities, the FY27 proposed budget includes several investments to support children and families: 

• $500,000 to facilitate students’ and families’ access to critical services, benefits, and programs  by supporting Communities in Schools site coordinators in RPS schools;
• $500,000 to reduce costs of childcare and support childcare providers through tuition assistance funded by the Early Child Care & Education Trust Fund;
• $1 million for after-school programming at all seven RPS zone middle schools  through the Middle School Alliance; 
• $850,000 to Positive Youth Development to provide access to community-based out-of-school time  opportunities for youth 11-19 and help prevent youth violence; and
• $625,000 to fund the Children and Families grantmaking process for local nonprofits that support the education, health, and development of children and families. 

Together, these investments reflect a whole-family approach to strengthen educational outcomes, support caregivers, and create opportunity pipelines from early childhood through career development. 

Read more information about  how school funding works . 

The full FY27 proposed budget will be presented publicly on March 11 and submitted to City Council for review and deliberation. For more information about the FY27 budget process, visit  FY27 Budget Season | Richmond.  

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