Metro Nashville’s next fiscal year begins on Saturday, July 1, and with it comes the city’s largest operating budget at $3.2 billion.

We know number crunching is not everyone’s cup of tea, so we’re bringing you a breakdown of where the money comes from, how it’s spent, and the biggest budget takeaways.

The big picture

Balancing Metro’s budget each year requires down-to-the-penny management of revenue and expenses. Property and sales taxes make up the bulk of the city's revenue and — if you’re skimming this story to find any increases — the new budget maintains Nashville's property tax rate of $3.254 per $100 of assessed value. Here’s where the money comes from:

Property taxes: 51%
Local option sales tax: 23%
Grants and contributions: 15%
All other revenues: 11%

Now, let’s talk about where the money goes. A significant portion of the operating budget each year is allocated to MNPS, with this year’s school budget totaling $1.2 billion. Other city expenses include Metro services like public safety, transportation, and recreation. Here’s a breakdown of the spending:

Education: 37%
Public safety and justice: 20%
General government: 13%
Debt service: 13%
Health and social services: 5%
Infrastructure and transportation: 6%
Recreation and culture: 4 %
Other: 2%

Other numbers to know

Along with raises for Metro Nashville and MNPS employees, some of the other expenses in the budget include:

$12.2 million in one-time funds to support a rapid transit route connecting downtown and BNA
One-time funds for sidewalks ($7.5 million), traffic calming ($4 million), and NDOT’s Vision Zero plan ($12 million)
$25.6 million for Pre-K classroom additions and renovations
$1.75 million for one-time substitute teacher pay
$75,000 to support Metro Family Safety’s Safe Bar Program
$25,000 in additional funding for Nashville's Sister Cities program, bringing the total to $95,000
$380,000 for new bus routes in Bellevue to support student transportation to the new Lawson High School

Of course, this only scratches the surface — dive deeper into the full FY 2024 budget.