City will receive early access to tax money, intends to use it to support RPS
The City of Richmond will receive an early payment of short-term lodging tax rentals, which could help fix a budget hole Richmond Public Schools finds itself in weeks before the start of the upcoming school year.
The school district is legally required to begin the year with a balanced budget, but when state lawmakers turned in their budget late, it contained less than RPS projected it would.
Graham Moomaw
The original RPS budget is now $8.9 million short. Superintendent Jason Kamras proposed eliminating annual substitutes, teachers who fill in at a specific building all year long.
Meanwhile, city officials announced on May 14 they had collected $5.6 million in outstanding tax bills from short-term lodging operators, like Airbnb and VRBO, money that wasn't budgeted for in this year's cycle.
That led to Richmond's school board drafting a letter to the mayor asking to receive that money to help plug the budget hole.
Victoria A. Ifatusin
However, short-term rental money does not go straight to the city. It goes to the Greater Richmond Convention Center Authority, which uses what it needs for its regional programs, then returns the rest to localities each December.
On Friday, Avula asked the Authority to prepare Richmond's contribution on an expedited basis, so the city could receive the money in time to support the school district.
“When I learned about the funding challenges facing our schools, I reached out to GRCCA to better understand what options were available with short term rental money,” Avula said in a statement. “Historically that’s been available towards the end of the year. After reviewing the agreement, they confirmed there is an opportunity to make a distribution in July and began the process to make that possible.
“I support our schools, and I'm always going to look for creative, responsible ways to help meet their needs. I'm glad this is an option that can now be considered.”
Superintendent Jason Kamras told The Richmonder he is grateful for the action.
"Thanks to Mayor Avula, the City found an opportunity to recoup some of those short-term rental dollars on a much faster timeframe than previously expected," he wrote. "The Mayor has expressed his full support for helping us fill our funding gap, so we’re eagerly awaiting next steps. We're truly grateful for his leadership and partnership."
The exact amount of money received is still to be determined, but is unlikely to be the entire $5.6 million.
The City Council must still allocate the funding to the school district. The Council next meets on July 27.
At that meeting, Council will also discuss allowing voters to weigh in on a 1% sales tax increase for school construction and renovation.
Graham Moomaw
Contact Reporter Victoria A. Ifatusin at vifatusin@richmonder.org
