Metro Council Has Plan To Give Raises, But Will It Work?

NASHVILLE, TN -- Some Metro Council members say city employees were promised a 3 percent cost-of-living raise and a 3 percent cost-of-living raise they should get, but Mayor David Briley's budget did not fund the increase.

Briley's bare bones budget came as a bit of a shock because of Nashville's supposedly booming economy, with blame thrown everywhere from tax-incentive programs used to lure businesses to the city to a record number of people - including the mayor himself - appealing their new property assessments.

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In any case, despite the tight budget, a group of councilmembers want to give the promised raises anyway, particularly after increased pressure from the police and firefighters' unions.

Councilmen Steve Glover and Scott Davis are drafting a resolution asking Metro's benefits board to move employee pensions to the state's consolidated retirement system. The pensions are currently managed by a New York company. They say the move will save the city $33 million, which will fund cost-of-living increases for two years.

Briley's office, on the other hand, said the move wouldn't actually do anything conducive to funding raises.

“The proposal demonstrates a fundamental lack of understanding regarding the differences between the Metro pension system and the operating budget. While such a proposal may be worth further study, it simply would have no impact on next year’s operating budget and would not free up funds for pay raises. I want to reassure employees and retirees that we are not touching retirement funds and won’t subject them to risky schemes. I will continue to work with the Council to pass a budget that is in the best interest of the city,” his office said in a statement to Fox 17.

Nevertheless, Glover and Davis plan to press forward. The Metro Council can't actually make the pension change itself; the resolution urges the benefit board to vote to do so.

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