Council reallocates budget as Tennessee law dissolves DEI department; council confirms mayoral restructuring

The Chattanooga City Council on Tuesday approved a budget amendment and a companion resolution confirming mayoral reorganizations after Tennessee’s recent legislation that dissolved municipal DEI departments.

The council voted to amend the fiscal year 2025–2026 operations budget to reallocate appropriations to the Department of Equity and Community Engagement and to reflect administrative restructuring required by Public Chapter PC 494 and Public Chapter PC 458, both cited in the ordinance text and related materials. Council also approved a resolution formally confirming the mayor’s restructuring of selected government functions as outlined in an exhibit attached to the resolution.

During discussion Councilman Henderson asked where funds saved by eliminating the chief equity officer position had been reallocated and pointed to about a $145,000 difference between the department total in the council’s budget worksheet and the figure shown in the budget amendment. City staff said the chief equity officer position will not be filled and characterized that amount as vacancy savings; staff members also said they would follow up with specific accounting and named staff (Kevin and Weston) who would review printed budget book differences and post‑printing allocations. Staff told council that neighborhood services had been moved under constituent services (OCS) and that the primary differences in constituent‑services totals were attributable to that move; staff committed to providing a detailed reconciliation after the meeting.

Council members sought assurances that the consolidation would not cause layoffs. Staff answered that no one would lose their job and that the chief equity officer would remain vacant. The budget amendment passed on a roll‑call vote, 8–1 (Councilman Henderson voted no). The companion resolution confirming the mayoral reorganization passed by voice vote.

The ordinance text references the operation budget ordinance number 14239 and cites compliance with public chapters the staff said were enacted in May 2025. Councilmembers asked for additional transparency on internal transfers and were told administration staff will include more detail in future agenda materials.