Mayor Freddie O’Connell delivered the 62nd annual State of Metro Address from the Grand Reading Room of the Nashville Public Library, highlighting the city’s continued progress and introducing his recommended $3.8 billion operating budget for fiscal year 2026.

In his second State of Metro address as mayor, O’Connell outlined a vision rooted in financial stability, neighborhood-level investment, and a focus on essential services such as education, public safety, and affordable housing. The proposed budget reflects what he described as a “common-sense” approach to governance.

“The State of Metro today is where many cities would like to be,” said O’Connell. “School performance is up, crime is down, and people want to be here. With the 2026 budget, we’re continuing to invest in the fundamentals that touch the lives of our residents every day.”

Education comprises the largest share of the proposed budget, with Metro Nashville Public Schools receiving 37.2% of total funding. The school allocation is 13% higher than in the previous fiscal year and aims to support continued academic growth, expand mental health services, and address the end of federal pandemic-era funding.

The budget dedicates $64.5 million from Metro’s operating budget to sustain programs previously backed by federal relief funds, including college and career readiness, safety ambassadors, and mental health resources.

Additional investments include $15 million to place a nurse in every school and $3.2 million for 23 new school resource officers. The mayor also pointed to recent gains in graduation rates and national academic recovery rankings as evidence that public school investment is yielding results.

O’Connell’s budget sets aside $138 million for services that directly impact residents, including parks, libraries, public health, and solid waste management. One of the major initiatives is a $45 million first-year investment in the city’s new Unified Housing Strategy.

Key housing allocations include:

• $16 million for the Barnes Housing Trust Fund
• $2.4 million for rapid rehousing vouchers
• $2.2 million for permanent supportive housing operations
• $1.7 million for anti-displacement efforts and home repairs for older adults

The budget also introduces a housing coordinator role within the Mayor’s Office to oversee interdepartmental housing initiatives.

The voter-approved Choose How You Move transit improvement program is set to expand in FY2026, though most funding will come from pre-approved sources. Planned enhancements include increased service frequency, new low-income fare programs, and weekend availability for WeGo Access for riders with disabilities. A new transit-focused police division within MNPD, consisting of 29 officers, will be funded to enhance rider safety.

Public safety continues to be a key focus, with a proposed $49.6 million increase across Metro’s emergency response departments.

The Nashville Fire Department is slated to receive an additional $15.3 million, supporting:

• A new truck company in Antioch
• Additional EMS personnel and units
• Staff expansions in the Fire Marshal’s Office
• Enhanced training and community safety initiatives
• The expansion of the REACH mental health co-responder program

The Metro Nashville Police Department’s budget includes a $24.7 million increase, funding 36 new officers for a citywide flex unit known as D-Detail, continued support for school resource officers, and creation of a new transit division. Police response times have reportedly improved by over 10 minutes in 2025 due to recent staffing strategies.

Additional funding will go to emergency communications, courts, and the Office of Family Safety. The Office of Youth Safety and a new Director of Violence Prevention will coordinate community-based efforts to reduce interactions with the justice system.

O’Connell acknowledged the challenges of budgeting amid economic uncertainty, the expiration of pandemic-era federal funds, and rising inflation. Despite these pressures, the proposed property tax rate is set at 2.814—down from 3.254 in previous years and the lowest since 1972.

“Many of us will see increased property tax bills because home values have gone up,” said O’Connell. “But we are still setting the lowest overall rate in more than five decades.”

Metro’s fund balance policies have helped the city earn a strong AA+ bond rating, saving millions in borrowing costs. The FY2026 budget also includes a $74.9 million sustainability reserve to address unforeseen fiscal challenges in the future.

“This is a basic, common-sense budget,” said O’Connell. “It allows us to continue delivering on our commitments, maintain our momentum, and strengthen the fundamentals that make Nashville a great place to live.”

The proposed budget now moves to Metro Council for review and approval. Fiscal Year 2026 begins July 1, 2025.