Richmond Approves Revised Budget

WRVA News
May 11, 2020 - 8:35 pm
Leslie Haley of the Chesterfield County Board of Supervisors and Richmond Mayor Levar Stoney prepare to discuss coronavirus on Friday, March 13, 2020. (Matt Demlein/News Radio WRVA)

(Matt Demlein/News Radio WRVA)

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Richmond, VA _  Richmond City Council has approved a revised budget for the 2021 fiscal year following the economic fallout from the coronavirus outbreak.  Mayor Levar Stoney issued the following statement:

“This budget is not the budget we first proposed, nor is it the budget we wanted, but it’s the budget we have to live with in light of these most difficult and challenging times. Amid the uncertainty of this pandemic, we must be prepared to make adjustments as we go, and we fully expect to do so in the coming months.

 

“To that end, I’d like to express my sincere appreciation to the members of City Council and their stand for all their hard work, cooperation and collaboration with my team, as well as for their commitment, going forward, to meeting the needs of our resident sand advance the city’s priorities in a manner that is fiscally prudent and equitable.”

 

Background information on the changes to the City of Richmond FY21 budget:

 

  • The FY21 budget outlined in Mayor Stoney’s March 6 presentation was based on a $782.6M general fund revenue projection. That projection has been updated and is now estimated to decrease by $38.5M and now stands at an estimated $744.1M. That represents a decrease of 4.9 percent from the budget presented to City Council on March 6th. 
  • The revised FY21 budget will still allocate more to RPS than the city did in FY20, following council-approved guidance to dedicate a certain percentage of real estate tax revenue to schools. A total of $181M will now go to RPS, compared to roughly $175M in FY20. 
  • The City of Richmond also remains dedicated to supporting nonprofit partners who meet the needs of the Richmond community. Knowing that many non-profit partners are facing challenges due to COVID-19, the mayor worked to ensure that the majority of partners’ budgets did not receive a cut from their FY20 allocations through the city’s non-departmental budget.  

 

The following items funded in the original FY21 budget have been eliminated:

  • 2 percent salary increase for employees; 
  • Step increases for public safety personnel and base salary increases for public safety recruits;
  • Nearly $9.4M in currently funded full-time and part-time employee positions. Which includes the elimination of 12 proposed new positions throughout the administration, including in Citizen Service and Response, Parks and Recreation, Human Services, and the City Attorney’s office, among others;
  • Parks, Recreation and Community Facilities workforce development program for returning citizens;
  • Doula program run through the Richmond City Health District; 
  • New funding for the History and Culture Commission operating budget; and
  • Several non-departmental allocations to nonprofits that did not receive funds in FY20. 

 

The following items saw an increase in the original FY21 proposed budget but have now been brought to FY20 funding levels:

  • The Affordable Housing Trust Fund, which was slated to receive $3.5M but will now receive $2.9M;
  • The Eviction Diversion Program, which was slated for a $201k increase but will now receive $485k; and
  • Many non-departmental allocations to nonprofits that received funds in FY20.