Housing and school funding, raises and spending reductions are major elements of Mayor Danny Avula’s first budget.

The $3 billion proposal for the 2026 fiscal year, which Avula presented to Richmond City Council last week, includes investments of nearly $50 million in housing initiatives and almost a quarter of general funds to support Richmond Public Schools.

More than $50 million will fund sustainability projects, including safe, complete streets, the Fall Line Trail and the Neighborhood Climate Resilience Grant program. No property taxes will be raised as part of the proposal.

“It reflects our shared vision of an effective city government that carefully and thoughtfully stewards resources,” Avula said of the proposal, “investing in core services and essential community needs.” 

Investment in City workers and services is also a key part of the proposal, which includes two new roles: a transportation director and chief transformation officer.

Salary increases are planned for eligible City employees by at least 3.25%, along with a 10.3% pay raise for police officers and firefighters and an almost $45,000 raise for Avula himself.

The proposal was shaped by the funding restrictions Richmond faces, according to Avula, including the many tax-exempt properties in the city, rising costs, and federal cuts and changes. Despite these obstacles, and grim economic expectations for 2026 and 2027, Avula was committed to investment and improvement.

“But even in the face of those challenges, our responsibility remains the same,” Avula said. “To see our way to an effective and efficient City Hall and a healthy and thriving city.”

Avula’s proposal also came with some allocations and reductions that already have sparked concern. The $9.6 million increase to the RPS general fund is larger than the previous year, but short of the $30 million school leaders requested as part of their budget proposal.

In a joint statement, the School Board and Superintendent Jason Kamras said they looked forward to collaborating with the City on the matter, but warned that the choice “jeopardizes the progress we’ve made and our children’s future.”

“We understand that the City is facing a tough budget year, and we sincerely appreciate the addition of $10 million, in a time when many departments and partners face cuts,” they wrote. “However, right now, it falls short of what our children need — and deserve.”

The budget also proposes a $4.1 million cut in grants for local nonprofits and charities, due to what Avula described as an unsustainable level of funding given the “fiscal climate.” The budget document also cites “concerns about the effectiveness and oversight” over the grant process after a recent audit.

Avula also acknowledged the absence of the Richmond People’s Budget, promising the city would try to find alternative support for some of the expected projects through planned allocations for the Department of Public Works.

City Council will now consider Avula’s proposal through multiple meetings in the weeks to come, with the finalized budget expected to be voted on during their meeting on May 12.