Understanding the MNPS Budget: What Was Approved and What's Ahead

The MNPS Board of Education voted Tuesday night to approve the FY26-27 operating budget, based on the Mayor's proposed Metro Government ordinance allocation. The adopted budget is an increase of $55,870,900 — or approximately 4 percent — over the FY25-26 operating budget. This allocation reflects an investment in the continued growth and operational stability of Nashville's public schools, and it supports our work as a four-time Level 5 Advancing District delivering historically high academic outcomes for students.

As is true of any school district budget, the overwhelming majority of MNPS expenditures go toward the people who serve our students every day. Of the $55,870,900 increase in the FY27 budget, approximately $40 million — more than 70 percent — is dedicated directly to employee compensation, including salary steps, health and pension benefits, and the Metro-wide cost-of-living adjustment. This reflects a fundamental truth about public education: investing in schools means investing in people.

Continuity of Operations: $38 million

The largest portion of the FY27 increase, $38,651,313, is dedicated to continuity of operations. These funds are not discretionary investments; they represent the cost of maintaining the programs, staff, and services already in place for our students.

Of this amount, the majority flows directly to employee compensation. A salary step increase of $10,471,000 will move all eligible employees to their next pay step, honoring our commitment to employees who grow and stay in our system. Health and pension benefits for all employees account for an increase of $15,380,200, covering our 75 percent contribution to health insurance for both certificated and support staff. Together, these two compensation-related investments total nearly $26 million within the continuity budget.

The remaining continuity funds address inflationary and contractual increases of $12,300,000, reflecting rising vendor costs, contractual obligations, and rate increases across district operations, as well as a $500,000 adjustment to the Student Based Budgeting (SBB) base weight to ensure per-pupil allocations better reflect the cost of instruction.

Metro Government Cost-of-Living Adjustment (1.7%): $11.7 million

Consistent with the across-the-board COLA approved for Metro Government employees, MNPS employees will receive a 1.7 percent cost-of-living adjustment in FY27, totaling $11,692,500. This is entirely a compensation investment, reflecting a shared commitment across Metro Government to ensure employees keep pace with rising living costs. Each additional 1 percent of COLA represents approximately $6.8 million in investment.

Aspirational Investments: $5.9 million

Beyond continuity of operations and the Metro COLA, the adopted budget includes $5,899,239 in targeted aspirational investments aligned with Board-approved priorities. Even within this category, a significant share goes to employees. An extension of the support staff calendar by two days, at a cost of $2,000,000, directly compensates support staff for additional work time and reflects our commitment to the workforce retention and readiness priorities the Board has championed. An increase in stipend amounts across categories, including exception pay and professional development stipends, adds another $591,505 in direct employee compensation.

The remaining aspirational investments address student-facing priorities: $2,000,000 to expand before- and after-care programming, $1,107,734 to expand Pre-K seats at the Hillwood Early Learning Center, and $200,000 to begin building a dedicated philanthropic services arm to attract external funding aligned with district priorities.

Looking Ahead

The Metro Council will now consider the mayor’s budget proposal, which includes a funding allocation for Metro Nashville Public Schools. Final state funding amounts for FY26-27 have not yet been confirmed, and any changes in state revenue could affect the full funding picture available to support district priorities. Once the Metro Council adopts a final Metro Government budget, the Board of Education will consider any potential new investments or changes to the MNPS budget before implementing on July 1, 2026.