The Birmingham City Council has approved a $615 million operating budget for fiscal year 2027.
The budget, proposed by Mayor Randall Woodfin, includes investments in neighborhood revitalization, youth and education programs, public safety, public transportation, homelessness services and the municipal workforce.
“The FY2027 budget builds on years of sustained financial stability and reflects Birmingham’s commitment to making long-term investments that improve quality of life, strengthen city services, and expand opportunities for residents across every neighborhood,” city officials said in a press release. “It also follows the city’s $31.8 million surplus investment plan approved earlier this year, which accelerated funding for infrastructure, neighborhood improvements, and community priorities.”
Woodfin thanked the City Council for passing the budget and touted its priorities.
“I want to thank the Birmingham City Council for their partnership in passing this budget,” Woodfin said. “It represents our shared values and reflects our combined commitment to building a Birmingham where every neighborhood can thrive, every young person has the opportunity to succeed, and every resident feels safer and better served.”
“We’re continuing to make smart, responsible investments that strengthen our city today while positioning Birmingham for an even brighter future,” Woodfin said.
The budget includes more than $19 million for neighborhood revitalization initiatives, a longtime priority for Woodfin. The funding will go toward street resurfacing, weed abatement, blight removal, critical home repairs for elderly residents and other projects, complementing additional neighborhood investments already approved through the March 2026 surplus spending plan.
More than $7 million will go toward youth and education programs, including mental health support and financial literacy initiatives in Birmingham City Schools, conflict resolution programming, Birmingham Promise, the Safe Havens Initiative, the Black Male Initiative, Kids and Jobs programs and the Birmingham Youth Sports League.
The budget’s public safety funding will focus on violence intervention and re-entry programming, including a $1.5 million increase in community violence intervention funding and $450,000 for the RESTORE Youth Re-entry Initiative.
The budget includes $17 million for public transportation, with $11.5 million for the Birmingham-Jefferson County Transit Authority, $3 million for the Birmingham Xpress Bus Rapid Transit system, $2.5 million for Birmingham On-Demand microtransit and $300,000 for ClasTran services for elderly, disabled and rural residents.
The FY2027 budget also includes significant investments in the municipal workforce, including $10 million in salary adjustments, $5 million in health care support and $500 premium payments for all active full-time employees, totaling about $1.7 million.
