Today, Mayor Freddie O’Connell filed his first budget for consideration by Metro Council. The $3.27 billion budget builds on the mayor’s promises to build a Nashville for Nashvillians as Metro government’s revenues stabilize after four-years of pandemic uncertainty.
“As we crafted the budget for the upcoming fiscal year, my team and I did what many Nashvillians do: we sat together at the table, took stock of where we are, worked through the tough decisions, and developed a balanced budget that asks Nashville to live within its means,” said Mayor Freddie O’Connell. “This budget sets the stage for our future success by prioritizing the essentials that we need to tackle right now.”
Director of Finance Kevin Crumbo projects Nashville’s tax revenue to be flat – largely unchanged -- from FY24 to FY25. With that in mind, the mayor starts by addressing an issue top of mind for many Nashvillians: affordability. The budget ensures a $30 million investment for the Barnes Housing Trust Fund which will support the creation and preservation of affordable rental and homeownership options. This fund will also assist homeowners on lower incomes or fixed incomes in maintaining their homes through rehab programs.
Since taking office, the mayor has set out to make Nashville one of the best customer service agencies in the city, responding to the needs to residents. Maintaining quality services is the backbone of good government.
To that end, the FY25 budget includes a 3.5% cost of living increase for Metro workers, bringing Metro’s minimum hourly wage up to $20 for general government employees, and it funds merit-based pay increases for eligible employees. This increase mirrors Human Resources’ recommendation to the Civil Service Commission and is vital to ensuring the well-being of our workforce and maintaining top-notch public services for our community.
The city's commitment to Metro Nashville Public Schools (MNPS) remains strong as this budget invests $18 million for new student textbooks and provides MNPS the opportunity to continue successful programs previously paid for with federal Elementary and Secondary School Emergency Relief Funds (ESSER). These programs have made a unique difference in the lives of students and their families. With federal funding ending, this budget provides a bridge to continue these services through the annual budget.
“We appreciate the investments in our students, staff, and schools to ensure a continued high-quality working and learning environment,” said Dr. Adrienne Battle, Director of Metro Nashville Public Schools. “While many districts across the nation are facing an ESSER cliff, we worked together to build a bridge to success going into the next schools year.”
To achieve these goals, Mayor O’Connell has asked departments to collectively achieve a manageable 1.4 percent savings. This will bring belt tightening in some areas while investment in others. Those savings will allow Metro to maintain a strong fund balance policy that provides for rainy days and now earns Nashville its highest financial ratings in recent history.
“The City’s financial position is strong,” said Director of Finance Kevin Crumbo. “This budget demonstrates our fiscal responsibility and leaves us poised for the transit improvement initiative later this year. I’ve never been more excited about the future of our city.”
Keeping a focus on customer service, this budget fulfills a priority Mayor O’Connell laid out during the campaign. It takes an important step toward creating a department to manage trash and recycling collection. Mayor O’Connell is setting the foundation for a separate, standalone department to manage Nashville’s solid waste.
Mayor O’Connell continued, “This budget does not accomplish everything we would hope to do in a single year, but it does accomplish the most important goal of any budget: it lives within its means and sets us up for success in future years.
“This year, we have coupled targeted belt tightening with an investment in our best resource: Nashvillians – both residents and our Metro employees.”
Mayor O’Connell is presenting to a special called meeting of the Metro Council Budget and Finance Committee on Wednesday afternoon at 4:00 pm. Finance Director Kevin Crumbo, Dr. Sneh Patel, and Budget Director Aaron Pratt also address the council.
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