RICHMOND, Va. — Richmond city and school leaders said they will ask voters to approve a new 1% sales tax this November to fund school construction and repairs.
The announcement was made during a joint news conference Thursday with Mayor Danny Avula, Richmond Public Schools Superintendent Jason Kamras, and members of Richmond city council and school board. They also announced a step to partially address an $8.9-million shortfall in the school budget.
"At minimum, it's a billion-dollar challenge that we face," Kamras said of the estimated cost of repairs needed within RPS' buildings. "Roofs that leak, HVAC systems that don't provide as much cooling as we'd like when it's warm and as much warming as we like when it's cold. We have asbestos in some buildings. We have facades that are crumbling."
Language in the new state budget that took effect July 1 included language that allows localities to impose such a tax, but requires the money be spent only on school repairs or construction and be approved by voters in a referendum.
"For too many years, we faced the same challenge of trying to find enough funding to address significant needs in our school buildings. This gives our community, Richmond residents, the chance to weigh in on a different path forward," said Richmond Council President Cynthia Newbille.
The tax would apply to most purchases, excluding medicine and groceries.
Leaders said the tax would raise an estimated $47.5 million in its first year and increase the city's borrowing power.
"That means a total of $850 million would be available for school capital projects between 2028 and 2034," said Avula. "We compare that to under our current plan, which is about a $450 million over the next few years."
Kamras said the funding would allow repairs to reach students currently in school.
"We'll be able to do more quicker, so kids who are in school today will see the fruits of this 1% before they leave us. Absent that, it is hard for me to make that promise," Kamras said.
Avula added if voters approve the new sales tax, he will introduce legislation to lower the city's meals tax by 1% — from 7.5% to 6.5% — and is committed to lowering the city's property tax rate by one cent — from $1.20 to $1.19 per $100 of the property's assessed value — in next year's budget.
"This is not a 1% increase in isolation for the sales tax, but that there are other things that the city is committed to to reduce that burden," Avula said.
Richmond parents and restaurant owners were among those at the announcement supporting the proposal.
"It's about giving our children safe, modern schools without placing the entire burden on homeowners and small businesses," said Ebonie Ricks Buckingham, a Richmond Public Schools parent. "Nearly a third of the revenue would come from people who work, shop, and visit Richmond, but don't pay property taxes here. That feels fair and that feels like a shared responsibility."
Liz Kincaid, who owns two restaurants in the city and one in Henrico with her company RVA Hospitality, said a meals tax reduction would help bring diners back to the city.
"We hear all the time, you know, how much lower the meals tax is in Henrico. People will drive out there to eat there, and people that live in Henrico don't want to come down to the city because the meals tax is so high,' said Kincaid. "And so, any kind of reduction, people are going to hear that, and they're going to want to come back downtown. And that's what we're really after."
Henrico's meals tax rate is 4%.
Kincaid said even though there would be no net change in the overall tax rate for them, it spreads the tax burden to other non-food based businesses and levels the playing field.
"We just really appreciate that Mayor Danny has done a lot of outreach with the restaurants, has really brought us into the conversation," Kincaid said.
City officials say public input sessions will begin in the fall to determine which schools would be helped first.
"We want to make sure that whatever we do is equitable," Kamras said.
The announcement also addressed a more immediate problem: an $8.9 million shortfall in the school budget after the district received less state funding than expected. Avula said he is asking the authority that collects the region's hotel and lodging taxes for $4.8 million now, rather than at the end of the year, and will transfer it to Richmond Public Schools.
Kamras said the money helps but does not solve everything.
"We still have about a little over 4 million that we need to make up, and the school board will be considering those cuts this evening at a special meeting at 6 o'clock," Kamras said.
When asked what cuts were being considered, Kamras said: "I would encourage you to tune in tonight."
City Council will take the ordinance to put the sales tax question to voters in November during their Monday meeting.
CBS 6 is committed to sharing community voices on this important topic. Email your thoughts to the CBS 6 Newsroom.
