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Board and staff debate COLA, step increases and longevity pay in FY26 budget discussion
Summary
Board members and district leaders discussed compensation strategy for FY26, including making step increases permanent, the relative effect of COLA versus longevity pay, and a district estimate that a 1% COLA costs about $7.1 million.
Metropolitan Nashville Public Schools staff told the board March 25 they are prioritizing a compensation strategy that preserves step increases and seeks COLA levels that keep district educators among the best paid in Tennessee, while examining if a longevity stipend would better help a small group of employees.
"Combined for certificated and our support employees, we have a, estimated, dollars 7,100,000.0 needed for every 1%," said Jorge Robles, chief financial officer, describing the district’s estimate of the cost of a 1% COLA.
Robles told the board the district has moved the step increase into its continuity‑of‑operations budget so step raises are treated as recurring commitments. Several board members repeatedly emphasized that step increases should be a continuing expectation. "For the record, we should always include step increases because we put it out on there as a promise," one board member said.
Board members and staff discussed longevity pay — an additional payment aimed at employees who have topped out on their salary schedules — and whether it should be added on top of COLA. Robles said district analysis showed a broad COLA would deliver a larger increase in take‑home pay across employees than a targeted longevity stipend for a small group. "What we're seeing is given a range of COLA where we might land, that we could significantly increase the kind of compensation package that our employees actually could realize, for the FY '26 budget season," he said.
Some board members said they brought the topic of longevity to be sure teachers’ concerns were heard. Board Member Tyler said the district’s choice to omit a separate longevity line in the presented budgets was not a rejection of the idea: "It's not included not because we didn't listen to you. It's not included not because we disregarded what you said, but because we wanted to do more, not just for the long the teachers who have topped out, but for everybody," Tyler said.
The board also heard that COLA applies to all employees and permanently increases the base salary amounts used in future budgets. Robles and several board members described the district’s objective as maintaining or exceeding peer pay levels in the state, which requires ongoing, historic investments.
No formal compensation decisions were finalized during the meeting; Robles said the district will negotiate final COLA and other compensation elements with Metro government as part of the mayor’s budget process.
