Nashville's proposed budget has city 'tightening our belt' for 2025. Here's what to know

Cassandra Stephenson, Nashville Tennessean
·3 min read

Nashville Mayor Freddie O'Connell's proposed $3.27 billion Nashville budget for 2025 shows the city "tightening our belt just a little" as revenue growth — though still positive — flattens throughout the state.

The proposal, which must still be vetted and approved by the Metro Council, is based on Metro Nashville Finance Director Kevin Crumbo's projection that Nashville tax revenue will be "largely unchanged" from fiscal year 2024.

"Our revenues are expected to be nearly the same as last year, so our spending will be nearly the same as well," O'Connell said during a presentation to Nashville Council members Wednesday. "This means we can't accomplish everything we want in a single year."

O'Connell said his proposed budget positions Nashville to live within its means and make some targeted investments without raising taxes. The proposed budget anticipates $33.9 million in new revenue. A 1.4% cost savings across Metro departments would help support a package of compensation increases for Metro employees, while surplus dollars from Metro's savings would go toward investments in textbooks, affordable housing and other priorities.

About 12.54% of the budget (nearly $411 million) would go toward debt service, down from fiscal year 2024's 12.74% and fiscal year 2023's 13.85%. The draft budget complies with Metro's rainy day fund rules, with two months of operating costs and half of the annual budgeted debt service kept in reserves.

Metro Council will undergo a weekslong review process, with a public hearing on June 4 and a final vote on the budget expected on June 18. Nashville's charter requires the council to pass a balanced budget by June 30, or the mayor's proposed budget will go into effect by default.

Here's what to know.

Schools funding relatively flat at $1.25B

Metro Nashville Public Schools would receive $1.25 billion — about 38% of the overall budget — which is roughly in line with the $1.2 billion budget allocated to schools in fiscal year 2024.

The proposal includes funding to provide a "bridge" to sustain multiple programs and services that were funded by soon ending federal dollars through the Elementary and Secondary School Emergency Relief (ESSER) program, O'Connell said.

An $18 million allocation from Metro's reserves would purchase student textbooks.

Metro employee pay

The draft budget includes a 3.5% cost of living increase for Metro employees, including teachers. This is on par with Metro Human Resources' recommendation, but falls short of the Civil Service Commission's recommendation of 4%.

Metro employees would also see market-based wage increases and/or 3% merit raises for eligible employees. Metro would raise its minimum wage to $20 per hour (the current minimum wage for Metro employees stands at $18 per hour).

The recommended $41.6 million education compensation package includes step raises and contractual increases in addition to the 3.5% cost of living adjustment.

Highlights: Affordable housing, law enforcement and other allocations

  • Barnes Housing Trust Fund: $30 million (including $16.5 million from surplus reserve funds)

  • Courts, justice services and Metro Family Safety: $99.6 million

  • Davidson County Sheriff's Office: $116.1 million

  • Metro Nashville Police Department: $297.5 million

  • Metro Nashville Community Review Board: $2.2 million

  • Metro Nashville Fire Department and EMS: $100.8 million

  • Office of Homeless Services: $5.5 million

  • Health and hospitals: $136.5 million, including a $59.6 million Hospital Authority subsidy and $5.6 million toward the Mental Health Cooperative

  • Public Library: $44.7 million

  • Metro Parks: $66.7 million

  • Metro Arts: $5.5 million (including $3.3 million toward arts and arts organizations funding, contingent on an annual report on grant recipients and Metro Council approval of award criteria)

  • Infrastructure and transportation: $141.3 million

  • Nashville Department of Transportation Vision Zero initiatives: $1.5 million from surplus reserve funds

  • Planning infrastructure study: $2.4 million from surplus reserve funds

This article originally appeared on Nashville Tennessean: 2025 Nashville budget plan has city 'tightening our belt'. Here's why