Nashville’s Fiscal Mess: Taxes, Spending, and Stagnation

Lonnie Spivak
Apr 7
1 min read

Updated: Apr 9

Dr. Achintya Ray and Lonnie Spivak.

In the latest You're So Right episode (April 7, 2025), we talk with Dr. A. Ray, a TSU economics professor, about Nashville’s financial challenges. With a potential 30%+ property tax hike looming in 2025, here’s what we uncovered.

Nashville’s Tax Burden

Dr. Ray reveals Nashville as the region’s most taxed city, outpacing nearby counties like Williamson and Wilson. High property taxes—3.53% vs. 1.93% just miles away—hurt competitiveness and push residents out.

Spending Over Revenue

A $3.2 billion budget, $1.6 billion from property taxes, and $411 million in debt repayment (enough for 24,000 TSU scholarships) show Nashville’s spending problem. Stadiums and a $6.93 billion transit plan (misreported as $3 billion) highlight misplaced priorities.

Regressive Taxes Hit Hard

Property taxes disproportionately burden the poor—a retiree pays 10% of income vs. 1% for a wealthy couple—driving gentrification and eroding wealth.

Education: High Cost, Low Results

At $17,000 per student, Nashville’s $1.4 billion school budget matches TSU tuition, yet outcomes lag. Less than half reaches teachers, with administration eating the rest.

25 Years of Decline

Census data shows median household income, adjusted for inflation, is below 1998 levels. Most Nashvillians are poorer despite rising costs.

A Fix?

Dr. Ray suggests zero-based budgeting—justify every dollar annually, prioritize public goods like safety and skills over flashy projects. Federal cuts could force the issue.