Pandemic relief, pay increases and more: What to know about Nashville schools budget talks

Offsetting the expiration of hundreds of millions in federal pandemic relief money and raises for educators and support staff took center stage as city and district leaders discussed the Metro Nashville Public Schools budget Thursday.

MNPS Director Adrienne Battle, Co-Chief Financial Officer Jorge Robles and Board of Education Vice Chair Freda Player were on hand to discuss the proposal before the Metro Council Budget and Finance Committee on Thursday. Several members of the MNPS board and representatives from Metropolitan Nashville Education Association were also present, looking on from the public gallery in the council chambers.

Here are five key takeaways from the discussion.

A $1.3 billion proposal

The proposed budget for the district, mapped out by Mayor Freddie O'Connell, includes a $41.6 million increase to the district's operating budget that will support a 3.5% cost-of-living adjustment for staff, step increases for staff pay and inflationary increases. The proposed budget also asks for $18 million in one-time funding for textbook materials, including new science textbooks for the 2024-25 school year.

The total 2024-25 proposed operating budget shakes out to just shy of $1.3 billion. That makes up around 38% of the mayor's $3.27 billion proposed budget for Nashville.

In May, O'Connell said his proposed budget has Nashville "tightening our belt just a little" as revenue growth flattens statewide, while still making gains. The proposed MNPS budget does include a $15 million budget cut. Battle said she and her team are still assessing where those cuts would land.

“What we are not planning to do is touch our school-based budgets," Battle said.

What to know: Nashville's proposed budget has city 'tightening our belt' for 2025

Offsetting expiring federal pandemic relief funds

Player and Battle both pointed to the district's diligent efforts to avoid a "funding cliff" that districts nationwide are facing as the federal Elementary and Secondary School Emergency Relief Fund, also known as ESSER, is set to wind down later this year.

Throughout the coronavirus pandemic, MNPS received a total of $425 million in ESSER funds that covered everything from student nutrition support to money for things like laptops and other technology. Battle said district leaders worked to build a "bridge" as the funds run out.

During the budget hearing, Player showed a slide with grim headlines from around the nation about schools facing teacher layoffs and sharp budget cuts due to the expiration of ESSER.

"We're having a very different kind of conversation," Player said as she praised the district's efforts.

The district previously gained approval from city leaders to use $66 million from its reserves to offset the effects of ESSER funding expiring. The district also folded some of the expenses funded by ESSER into last year's operating budget. They are now asking the council to sign off on allowing them to use an additional $11 million in reserves this year.

The total of $77 million in reserve funds would support things likes nurses in every school, tutoring, summer learning camps and mental health supports, among others.

Discrepancy in last year's cost-of-living adjustment

As proposed, the mayor's budget includes a 3.5% pay increase for all MNPS staff through a cost-of-living-adjustment, also known as a COLA. It also earmarks $10.2 million for step increases for teachers, support staff and nutrition services staff.

Last year, Metro employees received a 6% raise through a COLA allocation. However, MNPS employees only received a 4% increase. That discrepancy sparked frustration and pushback from MNPS board members, support staff and the local teacher's union.

"Last year we messed up and didn’t communicate well on that," Councilmember Burkley Allen said.

"Yes," Battle responded with a chuckle, as onlookers snapped their fingers in support and laughed from the public gallery.

Allen asked district leaders to provide council with a number that would offset that difference. Councilmember Chris Cortese later asked where the district would put any "extra dollars" the council may find to get the greatest return on investment. Battle cited the $15 million budget cut and "critically important" COLA increases.

Analyzing board member pay

Councilmember Tom Cash voiced his support for the district conducting a study on how much school board members are paid and what it would take to increase that amount.

At present, MNPS board members make $14,560 a year — an amount that has not increased since 2003, according to Player. She said school board members in comparable cities, like Memphis and Knoxville, make around $30,000 per year.

Player said the board's workload has increased since it must now run two elections during each election cycle due to a state law that allows for partisan primaries in school board races. She said the study would create transparency around what a potential increase to school board pay would support.

"We do not want to do this in a vacuum," Player said.

What's next

Councilmembers will conduct several more budget and finance hearings and work sessions in the weeks to come before finalizing the budget. The full council is expected to vote on the final budget during its June 18 meeting. The school board will then vote on the finalized budget by June 30.

The new budget will take effect on July 1, which kicks off the 2024-25 fiscal year.

This article originally appeared on Nashville Tennessean: Nashville schools: MNPS, city leaders discuss $1.3B budget proposal