The (projected) numbers are in. Under the draft proposal presented to City Council on March 4, Charlottesville’s budget will total $264,474,183 for fiscal year 2026.
Despite a nearly 5 percent increase from last year’s budget, no tax increases were needed to balance the draft budget this year. Any potential tax increases have been pushed off, with the deadline required for public notification of potential rate hikes already past.
Funding priorities include education, capital improvement initiatives, transportation, and affordable housing.
The largest single-item expenditure this budget cycle is education, with a more than $4.9 million increase proposed for Charlottesville City Schools. The draft budget allocates $79,026,522 for CCS—fully meeting the district’s budget request. Ahead of City Manager Sam Sanders’ presentation, CCS Superintendent Royal Gurley and School Board Chair Emily Dooley shared the school district’s request with council.
“At this moment in history, the moral imperative of public education could not be bigger,” said Dooley.
Most of the funding increase will be used to cover personnel costs, according to Gurley. In addition to raising compensation, eight full-time positions and one part-time role will be added to CCS’s roster. Among the jobs funded are three English as a second language teachers, two reading and math specialists, one family engagement liaison, one transportation coordinator, and a recruitment specialist.
CCS and Albemarle County Public Schools are both bracing for anticipated federal funding cuts courtesy of the Republican-controlled legislature and President Donald Trump’s opposition to diversity, equity, and inclusion initiatives—especially in schools.
It is anticipated that Trump will use an executive order to direct newly appointed Secretary of Education Linda McMahon to shut down the agency, something McMahon has publicly supported since her March 3 confirmation. Despite signals from the administration, Trump cannot dismantle the DOE through executive action alone. Congressional approval is required to shutter the department, and would likely require a Senate supermajority of 60 votes to pass.
Trump had not signed the anticipated memo at press time, but cuts to the DOE’s funding and personnel have already begun.
Beyond the school district’s general budget, CCS also requested an additional $1.5 million in Capital Improvement Project funds to address school priority projects. Safety and facility improvements are long overdue at several district buildings, including the Charlottesville Area Technical Education Center, which has not been updated in more than 50 years. In addition, a fall safety audit identified the need for new doors, among other things, at Charlottesville High School.
The city’s draft budget proposal falls just short of the CIP request, with $1.4 million currently slated for school priority projects. Both Sanders and members of City Council expressed a desire to meet the district’s full request, signaling future efforts to increase the allocation.
Increasing construction and capital costs were cited by both Sanders and Gurley as reasons for additional CIP funding, with costs outpacing estimates in most, if not all, projects.
While the contribution to CCS is the most expensive expenditure in the general fund, the category receiving the most CIP funds is affordable housing. Approximately 39.8 percent of FY26 CIP expenditures are slated for affordable housing efforts. Among the projects receiving CIP funds in FY26 are Carlton Mobile Home Park, the Charlottesville Affordable Housing Fund, and the Westhaven redevelopment.
Transportation is another major driver of expenses in the proposal. A significant investment in transportation and pedestrian infrastructure is part of an effort to improve accessibility and Americans with Disabilities Act compliance. More than $41.5 million in transportation projects are planned through 2030, including $4.7 million toward the ADA Transition Plan and $5.4 million for the New Sidewalks Program.
Outside of spending, uncertainty around federal and state government was a focus of Sanders’ budget presentation. In anticipation, the city is holding on to surplus funds from previous budgets rather than immediately allocating the roughly $24 million.
“We need to hold on to [the surplus] and give our people in D.C. a little more time to work out whatever it is that’s causing us to be in the state that we’re in, and see how those changes, proposed changes, actually make impact,” said Sanders. “It is very unpredictable right now, it’s very difficult to determine what is likely to happen. … We do expect impact, and we do believe there will be damage to mitigate. We’re not just looking at the federal government changes, but there will be state changes that happen as a result, and that means we will be hit twice.”
Charlottesville City Council is expected to vote on the final budget on April 14. For information on the remaining work sessions, public hearings, and community forum ahead of adoption, visit charlottesville.org.
City Manager Sam Sanders presented a balanced budget, with no tax increases, to City Council on March 4. Photo by Eze Amos.
