Birmingham approves $517M budget, largest in city history

Birmingham Skyline
The Birmingham skyline. (Nathan Watson / Bham Now)

This week, the Birmingham City Council unanimously approved Mayor Randall Woodfin’s budget for fiscal year 2023. The budget—which totals $517,017,653—is the largest in city history, surpassing 2022’s budget of $455 million.

Keep reading to see where that money is headed.

The City of Birmingham’s 2023 budget has been approved

Birmingham City Hall at Sunset 2021
Birmingham City Hall. ( Pat Byington/ Bham Now)

Earlier this year, Mayor Woodfin proposed the largest budget in Birmingham history, thanks to a projected $75.6 million increase in revenue. This week, the City Council unanimously approved the budget.

 “I am thankful to the council for their support. Our residents, our young people, our businesses and our city staff are the beneficiaries of this innovative city budget. Together, we will strengthen our city and position it for the future.” 

Mayor Randall Woodfin

The budget includes a five percent employees raise in each department, and marks the transition of the Division of Youth Services to Department of Youth Services as well as the Division of Capital Projects to Department of Capital Projects.

Investments in Youth, Neighborhoods, Transportation and Employees

Birmingham Express (Bham Now)
Birmingham Xpress Bus Rapid Transit was granted $1M in the 2023 budget. (Bham Now)

The Operating Budget for Fiscal Year 2023—which runs from July 1, 2022 to June 30, 2023—totals $517,017,653 and includes:

  • Investments in Youth 
    • $2M for Birmingham Promise 
    • $1M for Conflict Resolution through the Department of Youth Services
    • $1M for Early Childhood Development with Community Development
    • $1M for Financial Literacy with the Department of Youth Services
    • $225,000 for Juvenile Reentry
    • $1M for Mental Health Services with the Birmingham City Schools Board of Education
    • $1M for the Safe Haven Program with Parks and Recreation
    • $210,000 for the Summer Jobs Program — Department of Youth Services
  • Investing in Transportation 
    • $1M for Birmingham Xpress Bus Rapid Transit
    • $10M for BJCTA
    • $1.2M for VIA/Bham On Demand
  •  Investing in Employees 
    • $11.6M through surplus for Cost of Living Adjustment (recently passed 5% employee raise)
    • An additional $1.4M in Medical Insurance Increase
    • $1.5M in Longevity Pay
    • $2.9M for Merit Pay (5%)
    • $32.7M for Pensions
    • $4.8M increase in Contribution to Fire and Police Supplement Pension
    • $1.3M for Police Department Uniforms
  • Investments in Neighborhoods 
    • $3.5M for Demolition/Weed Abatement 
    • $500,000 for the Land Bank Authority
    • $275,000 for Sidewalks
    • $15 million for Street Resurfacing
    • $500,000 for Strategic Pavement Management Plan
    • $7 million for the Uniform Trash Receptacle Initiative

Click here to read the full budget.

What do you think about the City of Birmingham’s 2023 budget? Tag us @bhamnow to let us know!

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Nathan Watson

Senior Content Producer with Bham Now | Originally from Tennessee, Nathan moved to The Magic City after graduating from Birmingham-Southern College. Nathan is passionate about recognizing Birmingham's history and is thrilled to learn more about the big things planned for The Magic City's future.

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