The timing couldn’t be worse for Mayor John Cooper to tell us of his proposed property tax increase — an increase that he vowed would happen only if there were no other options.
I think we can reach some sort of consensus that these are times of few options.
Cooper inherited a fiscal mess that he’s been working steadily to clean up, and I am sure the decision to increase taxes weighs heavily on him.
We don’t yet know much about the proposed increase, but we know that many Nashvillians struggle to keep their homes and small businesses even during good times. It is far worse now, and too many Nashvillians’ income has been severely strained or eliminated altogether, with no real relief in their pockets.
We know all too well the mess that Cooper inherited from his predecessors, and the mayor and his team did a very good job bridging the $41 million-plus shortfall in our current budget. They closed the gap without selling Metro-owned assets, which was a measure that many criticized Mayor David Briley for choosing. Cooper’s team trimmed every bit of fat remaining after a number of lean budget years. He made the difficult decisions to reduce investment into affordable housing and capital spending. He’d put these cost-savings measures in place well before disaster struck with last month’s tornado — and then disaster struck again in the form of a global pandemic. With the cuts already made, Cooper will be faced with the even more difficult decision of eliminating Metro positions if our economy continues to slide downhill. For Nashville’s future, that is arguably a worse alternative than a property tax increase.
Estimates of our economic downhill slide are worrisome and considerable. The calculations can only be truly figured once we return to our friendly and engaged way of life, but our revenue loss is estimated to be at least $300 million, with some estimates reaching $600 million. It certainly makes last year’s budget shortfall look measly by comparison. Our fiscal year 2020 budget includes $2.33 billion in revenue, with local option sales tax contributing 20.6 percent and property taxes 45.7 percent. It’s regrettable — but not surprising — that Cooper would consider a property tax increase the only viable option to ensure that our government can continue providing essential services.
We can’t bank on the hope that revenue from our sales tax will rebound in time to fill Metro’s coffers for the upcoming fiscal year. Our certain rebound simply won’t come soon enough, with our fiscal year ending in June. This shutdown has devastated all other sources of Nashville’s income. Our entire tourism industry and virtually all retail businesses have been completely shut down. Businesses are folding left and right. People are losing jobs every day. FOX17 recently reported that new unemployment claims in the state jumped from 2,700 to 94,400 in two weeks. That’s an increase by a factor of 35!
Unfortunately, Nashville’s at-risk residents who always get the short end of the stick will again feel the effects the most. People who already struggle with Nashville’s soaring property values will be burdened with higher property taxes. And small businesses, both well-established and fledgling ones, will be at risk too.
But Nashvillians have gotten good at dealing with crises. We are showing our heart during the shutdown, as we do everything in our power to help each other. Our beloved Dolly Parton has again put her money where it matters most: She’s helped our youngest learn to love reading for decades through her Imagination Library, and last week she decided to help our most vulnerable citizens with the promise of substantial progress in scientific and medical breakthroughs by making a significant donation to Vanderbilt University Medical Center. We are all helping in every way we can. A single can of donated food means as much as a major donation, when it is given from the heart.
We can do it, Nashville. We will bail each other out with our own pocketbooks. It’s not fair, but this property tax increase may be our only option. So can we blame Cooper? No. Must we be happy with his decision? No, not a bit. But we need to keep practicing these new neighborly lessons we’re learning together and continue them into the coming months and years. Make sure everyone has enough food, tighten our belts, and help our neighbors. We won’t be protecting each other from the virus a year from now, but we will still need to protect each other as we manage a difficult recovery.
Bill Freeman
Bill Freeman is the owner of FW Publishing, the publishing company that produces the Nashville Scene, Nfocus, the Nashville Post and Home Page Media Group in Williamson County.
