Nashville Mayor O'Connell proposes $3.8 billion budget with tax increase, school investment

In his State of Metro address, Nashville Mayor Freddie O’Connell proposed a $3.8 billion budget for fiscal year 2026, prioritizing investments in public schools, affordable housing, and public safety amid the expiration of COVID-19 relief funds and significant cuts in federal funding. To offset these losses and fund new initiatives, O’Connell recommended raising the property tax rate to 2.8%, which, despite being Nashville's lowest since 1972, will result in higher tax bills for many due to a median home value increase of 45% since the last appraisal. More than a third of the budget is allocated to Metro Nashville Public Schools, including a 13% funding increase to backfill $64 million in lost federal support, the addition of nurses and school resource officers, and significant boosts for first responders and affordable housing. The proposal has sparked protests from groups concerned that rising taxes will push residents out of the city, particularly retirees and those on fixed incomes. O’Connell defended the increases as essential to maintaining critical city services, emphasizing that federal funding cuts threaten public safety, school quality, and city infrastructure. The Metro Council will now review, amend, and adopt the budget, with property owners able to appeal their new assessments until May 9.