McKenzie Special School District’s proposed budget for the 2025–2026 fiscal year includes a 3.5% raise for all staff and an increased starting salary of $48,000 for teachers, keeping the district ahead of the state’s push toward a $50,000 base pay.
Director of Schools Dr. Justin Barden and Finance Manager Brad Davis walked board members through the budget proposal during a workshop Tuesday, June 3.
“We’ve tried to stay ahead of that [State starting teacher salary] curve, and have been successful,” Barden said. “But the funds the state is providing don’t always balance out.”
The district’s general purpose fund is projected at $13.1 million, which is a 4.9% increase from the current year.
The overall proposed budget across all funds totals $15.4 million.
The district is planning for a $99,323 deficit in its general fund and a $119,793 shortfall in the cafeteria fund. Davis said they are confident both can be managed through savings.
“We feel like we’re in a very good place,” Davis said. “We anticipate closing the year with over $4.6 million in the general fund, about $1.1 million above the minimum reserve needed.”
State Funding and Property Tax Reappraisals
The budget relies heavily on funding from the Tennessee Investment in Student Achievement (TISA) formula, which fluctuates with enrollment. The district was recently informed its TISA-funded student count had dropped to 1,223.
“Hopefully we’ll see that level back out,” Barden said. He noted that the district had just enrolled two students from outside the district.
The district is also bracing for Carroll County’s recent property reappraisal. The certified tax rate adjustment is expected to keep revenue neutral. New assessment values will impact how much revenue each penny of the tax rate produces.
The current property tax rate for McKenzie Special School District is $1.1844 per hundred dollars of assessed property value. Davis said the new proposed rate from the County is close to $.75, but won’t be finalized until July.
“One penny used to raise around $11,000. It could now bring in $23,000 or $24,000,” Davis explained. “It won’t take as many pennies to generate the revenue you need.”
Federal Funding Cuts
Federal funding cuts will impact this year’s budget.
The district expects to lose at least $45,000 in Title V funds and potentially $40,000 more in Title I funds due to an improved poverty rate in McKenzie.
“McKenzie’s poverty level is 19.96%, and you need 20% to qualify for Title V,” Davis said. “That’s good news for our community, but it means less federal aid.”
The district shifted expenses such as instructional supplies and tutoring back into the general fund to compensate.
Overall, 22.5 positions are funded through federal programs.
Cafeteria Fund Challenges
McKenzie SSD’s cafeteria fund is operating at a deficit, however, officials they are hopeful that a “breakfast in the classroom” program at the elementary and middle schools will increase revenue through expanded participation.
“We’ve got to do something,” Barden said. “If we can get participation up to 85%, we could generate an additional $75,000 annually.”
Davis addressed Cafeteria wages. The budget proposes raising the starting pay for new employees to $10 per hour. Current employees who make more than $10 per hour will receive a 4% raise.
“Cafeteria workers are overworked and underpaid,” Davis said. “We want to raise wages further, but we have to grow revenue first.”
Upcoming Vote
While the proposed budget carries deficits on paper, both Barden and Davis expressed confidence in the district’s financial position and overall budgetary plan.
“We want to take care of our people, and we think this budget reflects that,” Barden said.
The board is expected to vote on the proposed budget Thursday, June 5.
