Mayor Cooper Unveils Proposed Budget for the 2021 Fiscal Year
“Make no mistake: just as the Greatest Generation met their challenges; we will meet ours”, said Mayor John Cooper during the 57th Annual State of Metro Address. While this statement was directed to Nashville rising to meet the dual challenge of a natural disaster and global pandemic, it is also an applicable motif to Nashville’s fiscal recovery. On April 28, Mayor Cooper laid out his proposed strategy for meeting Nashville’s current budget upheaval. Article 6 of the Metro Charter maintains that by May 1st the Mayor must submit the operating budget to the Metro Council; and the budget must enumerate general services district and urban services district-related expenses. Mayor Cooper’s presentation lasted roughly 40 minutes and captured “the most difficult year and the most difficult budget.”
“Over the next 15 months, the city will miss almost half of a billion dollars in revenue; cash balances will be driven down to almost zero and there is no federal bailout to the city”, said Mayor Cooper. “What are we able to do? We’re able to keep education stable; to keep public safety and health stable; and avoid layoffs of employees to replenish our missing cash reserves.” One of the highlights of the recent Elliott Davis study assessing Metro’s finances found that by the end of 2018, Nashville had less than one month of general fund expenditures in unrestricted fund balance; whereas, the Government Finance Officers Association (GFOA) recommends a minimum of two months.
“What are we not able to do? We are not able to pay our employees more…we cannot spend the money on capital projects right now… And how do we get to a balanced budget...in part, by cutting everything discretionary by 50 percent”, said Mayor Cooper, detailing the cuts to longevity pay, economic development grants, arts grants, non-profits/Chambers Grants and more, totaling up to a projected savings of $21 million.
Perhaps the most notable recommendation was the proposed 32 percent ($1) property tax rate increase, bringing Nashville’s rate to $4.15, allowing Metro Nashville-Davidson County to maintain a lower rate than Tennessee’s bigger cities, including Memphis, Knoxville and Chattanooga. This increase is projected to generate $332 million in new revenue.
Mayor Cooper’s proposed budget for FY21 totals up to $2,447,489,500 and does not propose a depletion of fund balances, the first budget since 2013 to not do so. During his closing, Mayor Cooper noted that “we can make the hard choices, we can get this balanced and we can move ahead with a platform that is ready to have a great city moving forward.”
The Mayor’s proposed budget ordinance may be found here. Metro Council has until June 30 to pass a balanced budget; otherwise, the Recommended Budget will take effect.