Nashville Mayor Bill Purcell Recommends Budget

Metro Mayor Bill Purcell presented the 2007-08 budget to the Metro Council this morning, a $1.5 billion proposal that remains in flux until June.

Purcell says the passage of Governor Phil Bredesen’s proposed 40-cent-a-pack cigarette tax can make as much as a $10 Million difference to the Metro school budget.

“This is a $1.5 billion budget. It is a balanced budget and requires no property tax increase,” Purcell told a dozen Metro Council members who showed up for the 8 a.m. presentation.

“Education is the most important thing we do for this city,” Purcell said, outlining a school budget that would total $578 million. That’s almost $6 million more than the school board’s approved request.

Among the mayor’s improvements to the school budget are $1.6 million added to the pay of support employees and almost $5 million to add teachers. Not overlooked were janitorial needs – the mayor wants to save at least 50 custodial positions slated for cuts.

Metro Finance Director David Manning says the city is whipsawed by state funding to schools. In 1992, the state paid about 34% of Metro’s school expense. The next year, the first year of Basic Education Program (BEP) funding, the state paid 40% of the costs. After 1994, that amount started to dip until today it is about 30%. Even with the new cigarette tax, the state will only be contributing about 31% of the total schools costs, Manning says.

The mayor outlined a plan that would give employees a 3% pay hike – but in steps that reach out beyond the 2008 fiscal year.

Homeless advocates in the audience hissed and sneezed – apparently in protest – as the mayor announced his budget to address that problem. Purcell counted up to $2.7 million in new funds for the program, including:

$600,000 New funding in FY 2008, including $450,000 in capital improvements

$600,000 Additional funding in Metro Development and House Agency programs recently announced

$600,000 Original funding recommended by the mayor

$689,400 Social services funds reallocated to the program.

But tee-shirt clad homeless demonstrators at the Metro Courthouse said later the problems of sufficient living places for the homeless, and jobs, are not addressed.

WHERE THE MONEY COMES FROM:

Property tax 50%

Local option sales tax 19%

Grants & contributions 17%

“Other” 13%

Fund Balance 1%

WHERE THE MONEY IS SPENT:

Education 37%

Public Safety 25%

General Government 11%

Debt 10%

Health & social Services 6%

Transportation & infrastructure 5%

Recreation & Culture 5%

“Other” 1%