Metro Nashville’s next fiscal year begins on Saturday, July 1, and with it comes the city’s largest operating budget at $3.2 billion.
We know number crunching is not everyone’s cup of tea, so we’re bringing you a breakdown of where the money comes from, how it’s spent, and the biggest budget takeaways.
The big picture
Balancing Metro’s budget each year requires down-to-the-penny management of revenue and expenses. Property and sales taxes make up the bulk of the city’s revenue and — if you’re skimming this story to find any increases — the new budget maintains Nashville’s property tax rate of $3.254 per $100 of assessed value. Here’s where the money comes from:
- Property taxes: 51%
- Local option sales tax: 23%
- Grants and contributions: 15%
- All other revenues: 11%
Now, let’s talk about where the money goes. A significant portion of the operating budget each year is allocated to MNPS, with this year’s school budget totaling $1.2 billion. Other city expenses include Metro services like public safety, transportation, and recreation. Here’s a breakdown of the spending:
- Education: 37%
- Public safety and justice: 20%
- General government: 13%
- Debt service: 13%
- Health and social services: 5%
- Infrastructure and transportation: 6%
- Recreation and culture: 4 %
- Other: 2%
Other numbers to know
Along with raises for Metro Nashville and MNPS employees, some of the other expenses in the budget include:
- $12.2 million in one-time funds to support a rapid transit route connecting downtown and BNA
- One-time funds for sidewalks ($7.5 million), traffic calming ($4 million), and NDOT’s Vision Zero plan ($12 million)
- $25.6 million for Pre-K classroom additions and renovations
- $1.75 million for one-time substitute teacher pay
- $75,000 to support Metro Family Safety’s Safe Bar Program
- $25,000 in additional funding for Nashville’s Sister Cities program, bringing the total to $95,000
- $380,000 for new bus routes in Bellevue to support student transportation to the new Lawson High School
Of course, this only scratches the surface — dive deeper into the full FY 2024 budget.