MEMPHIS, Tenn. — City Council signed off Tuesday night on the city’s nearly $900 million budget for fiscal year 2026, which included a 3% raise for city employees and no tax increase.
Firefighters had been set to see a 5% pay increase. The 3% increase for all employees was a compromise sponsored by Councilwoman Pearl Eva Walker.
“We want to be good stewards over the city’s coffers,” Walker said. “We were very committed to include everyone with the pay raise with the 3% across the board for all the full time employees, and we are very proud of that.”
But firefighters were not pleased. The frustrated union president spoke to council, citing previous agreements.
“Nobody has come to us prior to today saying there was any jeopardy involved with the budget, what you approved last year. That was the purpose of a three-year contract so we’re not up here every year,” Thomas Malone said. “We put the faith and trust in this system, I’m asking you to honor, I’m not here to badger you, honor last year’s statement and trust the system you were talking about trusting and pay what you said you would pay.”
Walker pushed back against his claim.
“They are excellent but that agreement that they are referencing it does not apply. It doesn’t carry over year after year,” she said.
The Memphis Police Association also had also been pushing for a 5% raise. Their union president said the city needs to be focusing on a longer-term plan in getting officer numbers up and closely monitoring the budget to make increases in pay.
“You know there is some disappointment, but you know I understand we went from zero to three, every little bit helps,” said John Covington, vice president of the Memphis Police Association.
The city will split funding for Memphis Area Transit Authority into two payments, with $15 million up front and the other $15 million remaining in a fund.
Council members say they want to see more accountability from the transit agency, which is facing a $60 million budget hole and accusations of misspending.
A public comment session during the MATA vote created some tense moments, with some members of the public being escorted out of City Hall after demanding more money for MATA than the $30 million allocated by the budget.
“If you have one more outburst, you will be removed from this chamber,” Councilman Ford Canale told the crowd.
“Remove all of us then,” was the response.
“Sergeant at arms, get them out,” Canale said before recessing the meeting to cries of “Fascism.”