Virginia Beach Advances FY27 Budget with Tax Relief, School Funding Boost
Virginia Beach, VA – March 30, 2026 – City leaders advance a tax-relief focused FY27 budget boosting schools, pay raises and capital projects.
Virginia Beach’s proposed Fiscal Year 2026-27 budget is now before City Council, marking the start of several weeks of public discussion on taxes, education funding and long-term infrastructure priorities.
City Manager Patrick Duhaney formally presented the spending plan, outlining a proposal designed to balance tax relief with continued investment in core city services. Council members are now reviewing department presentations and financial forecasts ahead of public hearings later this spring.
Tax Relief and Core Services
The proposed budget keeps the real estate tax rate steady while offering targeted relief for residents. At the same time, it includes pay increases for city employees — a step city leaders say is intended to strengthen recruitment and retention in a competitive labor market.
The General Fund focuses on maintaining existing service levels across public safety, public works and neighborhood services. From police and fire response to street maintenance and sanitation, the proposal aims to preserve day-to-day operations without major service reductions.
Education remains the largest single investment. Roughly 44% of the city’s operating budget is directed toward schools, reinforcing the city’s longstanding priority on public education.
Investments in Schools and Infrastructure
Beyond operating expenses, the plan outlines continued funding for capital improvement projects. Key areas include flood protection, transportation upgrades and facility improvements.
Planning, public works and utilities represent a significant portion of overall spending, reflecting the city’s ongoing stormwater management and resilience efforts as a coastal community. Infrastructure investments remain closely tied to long-term flood mitigation and community safety.
The proposal also maintains funding for parks and recreation, libraries and cultural amenities. Housing and human services allocations support initiatives such as shelter expansion and community health programs.
What Comes Next
City Council will continue reviewing the proposal in the coming weeks, with public hearings scheduled later this spring. Residents will have opportunities to share feedback before a final vote, which is expected in May.
Detailed budget documents, including departmental spending breakdowns and capital improvement plans, are available through the city’s online budget portal for those who want a deeper look at the numbers.
