Nashville’s Financial Health Improves, Earning a “C” Grade

Nashville’s financial condition showed improvement in fiscal year 2023, but the city still faced a $389.1 million shortfall. This equates to a Taxpayer Burden™ of $1,600, earning Nashville a “C” grade and classifying it as a “Sinkhole City” in Truth in Accounting’s latest report.

The city’s financial position improved by $566.6 million as revenues exceeded expenses. However, pension debt increased by $284.5 million, with the MetroPlan shifting from being overfunded to underfunded due to poor investment returns and unfavorable actuarial assumption changes.
Nashville made significant progress in reducing retiree healthcare liabilities, cutting $218.8 million from these obligations by making the Medicare Advantage Plan the exclusive option for retirees on Medicare under the School Professional Employees’ Insurance Plan.
Key findings from the report include:

• Nashville had $6.4 billion available to pay $6.8 billion in bills.
• The city’s financial shortfall amounted to $389.1 million, leaving each taxpayer with a $1,600 burden.
• Pension debt grew, but reductions in retiree healthcare liabilities helped offset financial pressures.

While Nashville’s financial outlook is improving, continued strategic planning and pension management will be necessary to ensure long-term fiscal stability.

For those interested in a deeper dive into Nashville’s finances—and how it compares to other major U.S. cities—you can read the full Financial State of the Cities 2025 report here.