Avula’s budget proposal prioritizes affordable housing, community wellbeing in Richmond
VENN
RICHMOND, Va. (WRIC) -- Richmond Mayor Danny Avula introduced his fiscal year 2027 budget proposal on Wednesday, saying it prioritizes making housing more affordable, boosting the city's economy and investing in community wellbeing and safety.
On Wednesday, March 11, Avula presented his budget proposal for the 2027 fiscal year to the Richmond City Council. The more than 550-page document outlines how Avula believes Richmond's money should be spent from July 1 of this year until June 30, 2027.
During his budget introduction speech on Wednesday, Avula emphasized that, in crafting this budget, he attempted to deliver on promises made under his Mayoral Action Plan despite the financial constraints the city faces.
To that end, Avula's proposal prioritizes strengthening city operations, supporting affordable housing initiatives and creating economic opportunity, among other items, according to a press release from the mayor's office.
Avula went on to say that this budget reflects a concentrated effort to strengthen collaboration between his office and Richmond City Council. Issues with the budget process across recent years had not only strained that relationship, but weakened public trust.
"We have spent time discussing the ways we together wanted to fund housing affordability, support frontline workers, invest in public safety, reduce gun violence, increase accountability around how we distribute funds to nonprofits and look for ways to spend less so that we can work towards lowering the tax burden on our residents," Avula said in his speech. "I have worked to ensure your priorities, our shared priorities, are reflected clearly in my proposal. And we’ll reconvene again after budget adoption to continue to improve the process."
Avula's proposal is subject to the review and approval of Richmond City Council. A public hearing, where citizens can share their thoughts on this proposal with the council, will be held on March 23.
Keep scrolling to learn more about some of the highlights from Avula's proposed budget.
Investments in city staff, cuts in departmental spending
Avula's proposed budget includes $263.5 million in investments related to fulfilling existing collective bargaining agreements.
Sworn police and fire personnel will receive raises under this proposal. Union-represented employees will receive salary adjustments and non-union employees performing the same work will receive equivalent adjustments.
Contracted workers in both janitorial and security roles will also see a pay raise, per budget documents. Starting in Jan. 2027, security contractors will be paid $20 an hour, while janitorial contractors will be paid $18 an hour.
Additionally, all departments that report to Chief Administrative Officer (CAO) Odie Donald, II were asked to reduce their budgets by 2% over fiscal year 2026. While not all departments were able to deliver the full 2%, these cuts still freed up about $4 million -- without the city having to make any workforce reductions.
Funding more affordable homes, helping people avoid displacement
Under Avula's proposal, nearly $11.7 million would be placed in the city's Affordable Housing Trust Fund -- an account designed to be a dedicated source of funding for affordable housing initiatives in the city.
Another $1.8 million would be invested in Affordable Housing Performance grants, which will reportedly help fund over 1,800 affordable housing units, per budget documents.
The proposal also includes funding for specific housing projects, with $1.6 million set aside for the Creighton Court redevelopment and $450,000 for Gilpin Court.
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The Creighton Court funding dollars would help with the next phase of construction, which includes paving, streetscaping and utilities. Meanwhile, the Gilpin Court funding dollars would allow the city to hire staff to oversee the implementation of the Jackson Ward Community Plan, described as "a people-centered and community supported initiative."
Avula has also suggested investing $10.1 million in programs designed to keep people in their homes. This includes eviction diversion and Right to Counsel services, as well as tax relief for older adults and residents with disabilities.
"These investments help ensure more homes for more people and more ways for residents to stay in the neighborhoods they love," the city said in the release.
Record-breaking funding for Richmond's schools -- but it still falls short
A record-breaking $257 million has been allocated for Richmond Public Schools (RPS) -- $8.2 million more than it received for fiscal year 2026. If approved, it would be the largest investment the city has ever made in its school division.
However, Avula's proposal still doesn't fund all items currently included within the school district's budget.
RPS leaders have said that, while every dollar is appreciated, it needs nearly $4 million more from the city -- and at least $20 million in increased funding from the state -- in order to fill the gaps.
Investments in keeping Richmond neighborhoods happy, safe
Avula's proposal contains several investments aimed at supporting Richmond's families and their children.
This includes $500,000 for childcare and preschool tuition assistance, $1 million for after-school programming at the city's middle schools and $850,000 for out-of-school-time youth community programs.
Just under $645,000 would go towards immediate crisis intervention and trauma-informed services related to gun violence prevention, including funding for the We Matter RVA Gun Violence Prevention Initiative. Said initiative focuses on social and emotional learning for middle schoolers impacted by gun violence, per budget documents.
Richmond's first responders would also see several investments, including $11 million for fleet replacements, $600,000 to replace the Richmond Fire Department's self-contained breathing apparatuses, $300,000 to replace expired protective gear used by the Richmond Police Department and $2.3 million for a new fire training facility burn tower in Sandston.
Another $15.6 million would be used to renovate the John Marshall Courthouse and implement safety improvements.
"By accelerating the funding for this project, we can address immediate safety issues, maintenance needs, and functionality concerns, while planning for a long-term solution," budget documents state.
Support for Richmond's small businesses, local commercial districts
Under Avula's proposal, $4.9 million would be poured into Economic Performance Grants, which would be used to support job-creating development projects.
Another $125,000 would be used to support the establishment of a new Carytown Business Improvement District, designed to help local businesses through "coordinated support, cleaner sidewalks and safer streets," according to budget documents.
An additional $250,000 would go towards helping neighborhood businesses upgrade their storefronts to attract more customers.
"These investments aim to strengthen the small businesses, artists, entrepreneurs and neighborhood corridors that power Richmond’s economy," the city said in the release.
To learn more about Richmond's budget process, click here. You can find Avula's full proposal here.
