Lynchburg, Va., City Manager Kimball Payne has proposed a budget that includes a 2.5% pay raise for city and school employees; a 1% raise for police officers, firefighters and public-safety staff; the full amount requested by schools; and no tax increase. "Unlike previous years, the proposed budget is characterized more by what it can do than by what it cannot," Payne said of the $318.1 million plan.

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