Budget Issues in Metro Nashville
Abstract
A budget cut is a reduction in the amount of funds a
department within a company or government may spend over a given period. This
paper focuses on Metro Nashville, Tennessee’s governmental budget issues. The
paper will outline the type of operating budget used by the Nashvillian
government and discuss challenges faced by leaders and how government proposes
to work through budget issues. Finally, the author will summarize how, as a
criminal justice leader, budgeting issues outlined could be resolved.
The Metro Nashville government of Tennessee, like many
states, are facing budget issues. Metro Nashville is confronting unpopular cuts
as Nashville is evaluating a possible funding dilemma of $41 million coming
from two proposals for selling control of street parking and a downtown energy
structure. Also, the state of Tennessee is questioning Nashville how its budget
will balance without these much-needed funds.
Nashville Tennessee has a long-standing history of facing
dilemmas through stakeholder analysis as when Tennessee pursued the Houston
Oilers, now known as the Tennessee Titans. Then mayor, Phil Bredesen, managed
numerous assemblies that stood to influence the public subsidization of the now
Titans Stadium (Friedman & Mason, 2005). Under Mayor Bredesen’s leadership,
Nashville emerged as a nationwide provincial center in the southeastern United
States. The Houston Oiler’s, nearing the end of their lease on the Astrodome,
and unable to secure funds for a new stadium, were attracted to Nashville’s
aggressiveness.
Bredesen’s administration prioritized economic development
in investment, business, and healthcare; thus, giving Nashville amplified
exposure. Bredesen served as mayor and shareholder in order to publicly fund a
football stadium in order to relocate an NFL team which proved to be
successful. Mayor Bredesen’s administration was very aggressive in pursuing
economic developments for the betterment of the Nashville economy.
The Operating Budget of Nashville
Metro Nashville operates on a capital and annual budget.
Metro Nashville’s finance director, Talia O’dneal recently asked government
administrators to “dip into savings, raise money elsewhere-mostly through
higher fees-and to make deeper cuts to city departments (Gonzalez, 2019, p.4).
O’dneal pointed out that Nashville is often irrepressible in rebounding swiftly
to economic trials and complications, reiterating to commissioners of
Nashville’s past endeavors with tight budgets.
The federal fiscal year runs from October 1 to September 30;
however, Metro Nashville and state fiscal years begin July 1 and ends June 30.
A twelve-month period applies to the budget at which time a legislative unit
governs its monetary stance and the outcomes of its operations. Metro Nashville
uses operating budgets by department. All governmental capitals and dispensable
organization trusts are accounted for employing modified accrual accounting;
inner service and operation funds employ full accrual accounting like that
found in private sector businesses (Metropolitan Government, 2019).
The operating budget is a strategy of present expenses and
the planned means of funding them. The annual operating budget is the prime
means to limit most of the funding, costs, and service distribution actions of
Nashville’s government. An adjusted final budget approved by council details
modifications by departments to show how they will function within the numerous
funds and departments approved in the budget.
Budget Challenges for Nashville
Leaders
As mentioned earlier, Nashville
is facing a $41 million shortage of funds. Administrators and stakeholders who
have a vested interest want to see funding solve community needs and dispense
funds for programs that have an impact on a community or group of people.
Nashville showed resilience in gaining an NFL team for its football stadium
project. The Houston Oilers needed a new home and found it in Nashville. It was
the perfect win-win situation. Nashville is now faced with a new challenge; how
to come up with funds to sustain its operating budget.
Gonzalez (2019) further explains
that in June’s council meeting, government administrators noted that cutting
donations to nonprofits and dropping funds to Metro’s Barnes Affordable Housing
Trust would create a $13 million savings. In order to implement one program, many
governments must cut funding from other programs. A savings task force-Blue
Ribbon Commission-had no suggestion on how to save for the amount the city
needs.
Presently, a $30 million downtown parking deal
is tied up in the court system with one company suing over how the initial
contract was awarded to the winning bidder. Also, a $60 million sale of the
District of Energy System is stalled due to appeals on the procurement
decision; the company that wants to run the systems is having to wait on the final
hearing. This sale, if successful, would net Metro Nashville $11.5 million
(Gonzales, 2019).
Resolving Budgetary Issues as a
Criminal Justice Leader
Being an effective leader in criminal justice is a crucial
component in the budgeting process. An effective leader solves issues; not the
creator (Greer, 2016). A criminal justice leader works through budget issues
much like a private sector agency. Criminal justice leaders rely on grant funds
for programs combatting crime, terrorism, etc. The author recommends several
ways for Nashville to address budget issues: 1) increase property taxes and
eliminate the revenue neutral tax rate, 2) properly fund public services such
as public transportation, 3) freeze credit card spending and freeze hiring
temporarily.
Conclusion
Metro Nashville addresses budget priorities, pressing
challenges, and demonstrates a thoughtful plan and clear vision for the future
as the government attempts to secure missing funds for needed programs and
other initiatives. Nashville is resilient in combatting budget issues as shown
in its past accomplishments. Finding innovative initiatives helps governments
fund programs that impact communities. Nashville’s annual capital budget is
monitored and reviewed by agency administrators before final approval. Leaders
work together to resolve many budget conflicts within the governmental
agencies. As many city’s face budget cuts that impact populations, Nashville’s
ability to adapt and overcome to service citizen’s needs shows its on the
cutting edge in the budgeting process.
References
Friedman, M.T., Mason, D.S. (2005). Stakeholder
management and the public subsidization of Nashville’s coliseum. Journal of
Urban Affairs. 27(1). p. 93-118. Retrieved from http://eds.b.ebscohost.com/eds/detail/detail?vid=3&sid=799782c5-b17c-4e4f-a459-f0d34bb6c688%40sessionmgr101&bdata=JkF1dGhUeXBlPXNoaWImc2l0ZT1lZHMtbGl2ZSZzY29wZT1zaXRl#AN=16107970&db=sih
Geer, E. (2016).
Step up and be a leader. Professional Safety. 61(12). p. 31-33.
Retrieved from http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?vid=2&sid=349b75dd-eaed-4f91-8d30-0fa737fca352%40sessionmgr4008
Gonzalez, T. (2019). Lingering metro budget hole
could mean more cuts to departments. Retrieved from https://www.nashvillepublicradio.org/post/lingering-metro-budget-hole-could-mean-more-cuts-departments#stream/0
Metropolitan
Government. (2019). Citizne’s
guide to the budget. Nashville.Org. Retrieved from
https://www.nashville.gov/Finance/Management-and-Budget/Citizens-Guide-to-the-Budget/Learn-About-the-Budget/Glossary.aspx
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