2027 Newport News budget adopted, no increase in real estate tax rate

Newport News City Council voted May 12 to adopt the City’s Fiscal Year 2027 Operating Budget, an almost $1.3 billion spending plan that advances the Council’s strategic priorities while keeping the real estate tax rate unchanged.

The adopted budget supports core city services, strengthens public safety, invests in Newport News Public Schools, advances neighborhood and housing initiatives, supports economic growth, and provides targeted compensation to recruit and retain the workforce needed to serve residents.

“This budget reflects the city’s commitment to responsible financial stewardship and continued investment in the people, services, and infrastructure that make Newport News strong,” Mayor Phillip Jones said. “Council’s adoption of this budget allows us to meet today’s service demands while also preparing for the future.”

“This budget is about delivering value to residents,” City Manager Alan Archer said. “The additional revenue from assessment growth is being directed toward visible, necessary, and strategic investments that support safety, education, neighborhoods, economic opportunity, and the City workforce.”

The budget supports several priority areas, including: Strengthening Public Safety and Emergency Response

The budget includes funding for 20 new firefighter positions to move closer to minimum staffing standards and reduce mandatory overtime, as well as eight new police officer positions to strengthen coverage and neighborhood safety. It also continues investment in the Drones as First Responders Program to improve emergency response and situational awareness during certain calls for service.

Investing in Education

Education remains the City’s largest investment. The budget includes $128.5 million in city funding for Newport News Public Schools operations, a $3 million increase over the current fiscal year, along with $10.4 million for city-funded school capital project debt service. The Capital Improvement Plan also includes $46 million for school projects, including continuing major renovations at Warwick High School, school bus replacements, technology refresh, and facility improvements.

Supporting Neighborhoods, Housing, and Quality of Life

The adopted budget aligns with residents’ priorities for neighborhood appearance, housing stability, and community investment. It includes $48 million for the Department of Human Services to support their mission of helping residents lead safe, healthy, and independent lives, continued funding for demolition of blighted and vacant properties, and the creation of a new Department of Housing and Community Development to help implement the City’s Strategic Housing Initiatives Plan.

Recruiting and Retaining City Employees

To remain competitive in a challenging labor market, the budget provides a 3.5% general wage increase for eligible employees, an average 9.7% public safety salary enhancement for sworn Fire, Police, and Sheriff’s Office personnel, and an increase in the City’s minimum wage to $18.00 per hour, which is one of the highest in the Commonwealth of Virginia.

Advancing Economic Development and Opportunity

The budget continues investments in downtown revitalization, strategic development sites, workforce development, youth employment, the Newport News Opportunity Center, and digital infrastructure readiness. These efforts are designed to position Newport News for future business growth, job creation, and expanded opportunities for residents.

City leaders recognize that rising assessments can affect household budgets. By maintaining the current tax rate rather than increasing it, the adopted budget balances that concern with the need to fund essential services, address staffing and public safety needs, support schools, invest in neighborhoods, and maintain long-term fiscal stability.

The adopted FY 2027 budget takes effect July 1, 2026.

Residents can learn more about the FY 2027 budget and explore how local tax dollars support city services through the city’s online budget tools, including Balancing Act and the Taxpayer Receipt.

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