This Balloon Runs on Hot Air and Higher Taxes

The Council passed Budget & Finance Chair Delishia Porterfield’s substitute budget last night. The $3.8 billion plan includes Mayor O’Connell’s property tax increase, which means an average combined rate increase of 26 percent. That said, according to Councilmember Jason Spain of District 35, homeowners in the GSD will experience an unprecedented and astronomical increase.

“That rate is actually a little over 39 percent and that's before you take into account the increase in appraised property values, which in my district rose by a median of 52 percent,” he said. “At that rate, this becomes a tax increase of 45 percent.”

Councilmember Tonya Hancock, who co-sponsored a substitute budget that would have cut spending and reduced the mayor’s property tax increase, also crunched some numbers. She explained that the tax rate would result in an average increase of $802 per year for people in District 9. “The average rent in my district is $850,” said Hancock. “Everybody knows that the landlords are going to add that $802 into the cost of rent, so they're going to have to pay 13 months rent instead of 12.”

According to Councilmember Courtney Johnston, the mayor’s budget—which was essentially adopted in the chair’s proposal—included $570 million in new spending and the fourth largest increase for Metro Nashville Public Schools in the city’s history. During the meeting, Johnston withdrew the alternative substitute that she co-sponsored with Councilmembers Hancock and Thom Druffel. 

“I'm sorry that there's just no appetite in this chamber for reducing spending, and that's the only way to reduce your tax burden,” she said, addressing Nashville’s property taxpayers. “I know this substitute, that offers a 28 percent reduction to the proposed tax increase, doesn't have the support of this body, so I'll spare everyone the drama and the time of the debate.”

The glowing press releases were quickly sent out after the final vote on Porterfield’s substitute. "We're moving forward with a common-sense, balanced budget that delivers on the quality schools, reliable services, and safety we all deserve,” said the mayor. Chair Porterfield thanked O’Connell “for presenting a strong, values-driven budget that laid the foundation for this substitute.”

Councilmember Emily Benedict came to the defense of her vote in favor of Porterfield’s budget in an email sent directly after the meeting. She said that, though the competing proposal “would have reduced the average District 7 tax burden by about $210 per year,” it would have resulted in “hundreds of cuts.” 

Though council members like Jeff Preptit defended the outcry from Metro departments against the substitute proposal that would not have reduced new spending and the tax increase, it was apparent during last night’s meeting that there has been a lot of heartburn this budget season. 

“It really feels like this cake was baked before it actually got here,” said Councilmember Jeff Eslick. “We got $20,000 here, $80,000 there, a little bit of sprinkles on the top, or maybe flavoring the icing a little bit, but this thing was fully baked when we got it, and I think some of the biggest evidence is in the USD, GSD tax rate and the way that was all handled.”

“Next year, we can't get budget wish lists the day before the deadline that we were originally told and then be told that we've been given an extension when it's a holiday weekend,” said Councilmember Joy Styles. “Some of the funding sources weren't even listed. It was bedlam getting a USD, GSD report. I mean, we didn't have time to digest.”

Although failing to adopt Chair Porterfield’s substitute budget would have resulted in the automatic implementation of the mayor’s proposal, there were a few holdouts during the final vote. Councilmembers Joy Kimbrough, Tonya Hancock, Jennifer Webb, Jeff Eslick, Courtney Johnston, and Jason Spain all voted against it. Councilmembers Thom Druffel and David Benton abstained. MEGAN PODSIEDLIK

🏢 A New Metro Office! Amidst all the budget talk during last night’s council meeting, the body quietly consented to accept a grant that helps establish the mayor’s proposed Office of Financial Empowerment. The funding comes from the Cities for Financial Empowerment Coalition, founded by former New York City Mayor Michael R. Bloomberg and San Francisco Mayor Gavin Newsom, with matching grant from the Community Foundation of Middle Tennessee, the nonprofit that partnered with Metro Nashville to establish the controversial Belonging Fund created in the wake of recent immigration enforcement operations.

The establishment of this office in Nashville adds us to a list of municipal governments across the country that leverage political power to “advance innovative financial empowerment initiatives.” They create financial pathways for impoverished citizens through centers partnered with banks and credit card companies like American Express, Bank of America, Discover, JPMorgan Chase & Co., Visa, Wells Fargo, and others.

🚸 Ban on Transing Kids Upheld In a 6-3 ruling on Wednesday, the U.S. Supreme Court upheld Tennessee’s 2023 law that bars doctors from prescribing puberty blockers and cross-sex hormones to minors. Chief Justice John G. Roberts Jr., writing for the majority, said the Court’s role is only to ensure the statute “does not violate the equal protection guarantee of the Fourteenth Amendment,” leaving policy judgments “to the people, their elected representatives, and the democratic process.”

Tennessee Attorney General Jonathan Skrmetti, whose office defended the measure, hailed the outcome as a “landmark victory.” “In today’s historic Supreme Court win, the common sense of Tennessee voters prevailed over judicial activism,” Skrmetti said, noting that “a bipartisan supermajority of Tennessee’s elected representatives carefully considered the evidence and voted to protect kids from irreversible decisions they cannot yet fully understand.”

🎓 School Budgets Balloon MNPS's budget continues to balloon, nearly doubling since 2016, even as enrollment steadily decreases. Education accounts for 37 percent of the FY2026 budget.

DEVELOPMENT

• Private sporting club to open in Cummins Station (NBJ)
• Work underway on $95M North Nashville residential project (Post)
• UMG purchases Berry Hill property for $1.98M (Post)
• Midtown office building listed for $3.5M (Post)
• Red Bicycle to close in The Nations (Post)

THINGS TO DO

View our calendar for the week here and our weekly film rundown here.

📅 Visit our On The Radar list to find upcoming events around Nashville.

🎧 On Spotify: Pamphleteer's Picks, a playlist of our favorite bands in town this week.

👨🏻‍🌾 Check out our Nashville farmer's market guide.

TONIGHT

🎸 Nathan Kalish & his Derechos @ Dee's Lounge, 9p, $5, Info

🎻 Nashville Symphony Presents: BLACKSTAR SYMPHONY @ Schermerhorn Symphony Center, 7:30p, $41+, Info

🎸 Kathleen Edwards with Matt Sucich @ 3rd and Lindsley, 7p, $35.06, Info

🎸 Ben Chapman's Peach Jam @ The Basement East, 8p, $19.83, Info
+ feat. Lukas Nelson, The Castellows, Tony Kamel, & Suede & Lene

🎸 Woods Wednesdays @ The Basement, 9p, $12.85, Info

🪕 Steve Huber and The Flatheads @ Station Inn, 8p, $20, Info

💀 Tennessee Dead @ Tennessee Brew Works, 6p, Info

🪕 Bluegrass Night @ The American Legion Post 82, 7p, Free, Info

📰 Check out the full newsletter archive here.

Today's newsletter is brought to you by Megan Podsiedlik (Nashville), Jerod Hollyfield (Crowd Corner), Camelia Brennan (Local Noise), and Davis Hunt (everything else).