Mayor Abula unveils proposed FY2027 budget with increases for schools, housing and city workforce

Mayor Abula presented the city's proposed fiscal year 2027 budget to the Richmond City Council, saying the plan focuses on strengthening city operations, preserving affordable housing and increasing support for schools.

"I am very excited to present our proposed fiscal year 27 budget to you for all for consideration this afternoon," Abula said, framing the plan around transforming Richmond's government into "a model public sector organization" that is competent, transparent and responsive.

Abula said the proposal was developed in a constrained fiscal environment and highlighted specific investments. The plan would invest $263,500,000 in the city workforce, including a $22,100,000 increase from FY26 to fulfill collective bargaining commitments; union-represented employees would begin raises in July 2026, while some cost-of-living adjustments for other employees would be delayed to January 2027.

The mayor also identified major capital and program investments: he said the recently introduced state budget proposals included $50,000,000 for the combined stormwater overflow system and $20,000,000 for the water treatment plant, and he outlined local budget allocations for housing and schools. "Thanks to the great work that we did together on the Affordable Housing Trust Fund Ordinance, we now have a predictable, sustained, and implementable funding stream for affordable housing," Abula said.

Under the city's proposal, the Affordable Housing Trust Fund formula would allot $11,700,000 for the year, with an additional $1,800,000 proposed for affordable housing performance grants and $10,100,000 earmarked for anti-displacement strategies. The budget includes $1,600,000 to advance the next phase of Creighton Court and $450,000 to support the transformation of Gilpin Court for resident engagement, case management and transition planning.

On education, the mayor proposed $257,000,000 for Richmond Public Schools (an $8,200,000 increase from FY26) and said the city would front-load a $9,300,000 capital maintenance request in the FY27 CIP. He said nearly $3,000,000 is proposed for child care and after-school programming to support learners across the continuum.

Abula highlighted reforms and efficiencies intended to pay for or complement these investments: expanded procurement practices (including the city's first reverse auction), a public procurement transparency dashboard, and work to close audit findings. "We've used our recent audit findings to inform major transformation efforts and to prioritize initiatives in this proposed budget," he said.

Council members praised the earlier release of budget materials and said they welcomed the opportunity to dig into departmental requests during the scheduled work sessions. Council President Newbill noted the council's first work session is March 18 and asked members to route questions to the chief of staff so the administration could respond in advance.

The mayor closed by framing the budget as part of a longer effort to strengthen neighborhoods and the city's institutions. "This work is not just about balancing a budget. It is about shaping the future of our city," he said.