Based on early reaction, no one felt the 2005 State of Metro sting more than the school system, which by most accounts got the short end of Purcell's budget stick. (Or as a couple of political chatterers suggested Tuesday, schools got that stick shoved somewhere unpleasant.)
The mayor announced that he will request $30 million in increased school funding from a property tax hike, about half of the schools leadership's request. The rest, Purcell said, would have to come from a proposed half-cent sales tax increase, decided by voters, 80 percent of which would be dedicated to schools.
"We all know that the promises and expectations established by the school system and school director three years ago have not been met," Purcell said pointedly. "This public referendum and the year ahead will give the school board and our director of schools the opportunity to prove to us all that they can and will deliver for our children."
In other words, says one Metro Council member, "This is a full-on attack on the leadership of the school system." It's no secret these days that Purcell thinks superintendent Pedro Garcia is a dreadful manager, and after schools officials bungled the budget process—in particular their hearing with the mayor (which he made sure to mention in his speech)—Purcell is perfectly willing to leave them twisting in the wind.
Many folks who took Hizzoner's temperature in recent weeks figured he'd give the school system about a $50 million increase in his budget, with the option to convert a good chunk of that from a property tax to a sales tax. Just let the people decide, and schools will get their money one way or another. But under his plan, no such luck: if they can't convince voters, they won't get the cash.
Purcell defended his choice in an interview with the Scene, saying he doesn't think the property tax rollback option would have been as successful as the directed sales tax. "I don't think for the people of Nashville that's the best way for this to be considered," he says. But the mayor pledged to help lead a sales tax campaign should it be needed—and provided the school system can make its case to the city. "My plan is to stay at the front of the parade for schools," he says.
Nonetheless, a few people suggested on Tuesday that the Education Mayor has gone AWOL, apparently to be replaced by the Senior Citizens' Mayor. That's because Purcell used his State of Metro address to unveil "the single most important new proposal that I will bring to you this year": a comprehensive tax relief program for the elderly designed to limit their local property, sales and wheel tax burden to 5 percent of their income. "Senior citizens in this community are the foundation for our success," he declared, echoing past lines about education. If children aren't the future, maybe their grandparents can be.
As usual, though, Purcell seems to be crafting politically shrewd policy with the budget he previewed Tuesday. "He tried to offer just about everyone something, and no one got everything they asked for," observes Diane Neighbors, chair of the Metro Council Budget and Finance Committee, whose job it will be to shepherd the budget through the legislative process. "In terms of the schools, [$30 million] was probably lower than some people thought it would be, but the Schools Funding Task Force had requested more permanent funding, so they didn't always have to go back to the mayor and council for a tax increase." The sales tax plan meets that need, she says.
Neighbors characterizes linking a possible schools sales tax hike to tax relief for seniors as "an interesting proposition." Which sounds like code for "a good way to get old people, unions and public school advocates to support a tax hike they would otherwise oppose." Interesting, indeed.
Soon, Hizzoner's budget—including a proposed 84-cent property tax increase and a half-cent sales tax increase—will be on the Metro Council's desks, which is something like handing an exploding Rubik's Cube to a 2-year-old child. Will it be so complex and skillfully engineered that they can't do much damage to it? Or will it get rearranged until it becomes unfixable? Or—and don't rule this out—will the council carefully scrutinize Purcell's budget and make some intelligent changes?
By June 30, when the council must approve a budget, it will be apparent whether the mayor's budget is a recipe for success or a prescription for failure.
"I think there's work to be done—much more work than four years ago," at-large council member David Briley says, alluding to the last Metro property tax increase (at 88 cents, the second-largest in Metro history). But Briley says he has "every expectation" that Purcell will both work with the council to pass a budget and pound the pavement for his sales tax hike. "It's not something that he can let hang out there without leadership and hope that it passes."
