Local
Nashville Weighs Employee Buyouts to Close Budget Gap as Property Taxes Hit 56.69% of Revenue
Facing a tight fiscal year 2028 budget despite last year's 27% property tax hike, Metro Nashville is proposing employee buyouts to cut spending. Property taxes now account for 56.69% of the city's operating revenue, leaving homeowners squeezed and officials searching for savings.
NASHVILLE, Tenn. â Metro Nashville is considering employee buyouts as it stares down a tight fiscal year 2028 budget, even after a major property tax increase last year, city officials confirmed.
The proposal comes as homeowners continue to feel the pinch of higher property taxes. In 2025, Mayor Freddie O'Connell proposed a roughly 27% property tax increase to help fund Metro services amid rising costs. According to Metro Nashville's official Fiscal Year 2027 budget information, property taxes now account for 56.69% of the city's operating budget revenue â a figure that underscores how heavily local services depend on homeowners.
Despite that infusion, the city is projecting budget pressure in fiscal year 2028. To lower spending ahead of that budget cycle, Metro is proposing employee buyouts, a move that would reduce the city's payroll through voluntary departures.
The situation has raised questions about whether the city's fiscal challenges stem from insufficient revenue or from how Metro spends taxpayer dollars. Mayor O'Connell and Metro Councilwoman Courtney Johnston are expected to address those questions as the buyout proposal moves forward.
For residents already struggling with high property taxes, the debate over buyouts and spending is personal. Homeowners across Nashville are weighing the cost of staying in their homes against the rising tax burden.
The buyout plan is still in its early stages, and details about eligibility, timing, and expected savings have not been finalized. City officials say more information will be available as the fiscal year 2028 budget process unfolds.
The proposal highlights a broader tension in Nashville: even with a historic tax increase, rising costs for city services are outpacing revenue, forcing difficult choices about the size and scope of local government. How Metro balances those choices will shape the city's budget â and its homeowners' bills â for years to come.