How to fund a thriving public school system
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.
