Knox County Schools proposes $717.7 million FY27 budget that raises pay but exceeds near-term revenue growth

Knox County Schools staff on Monday outlined a proposed FY27 budget that would protect classroom staffing, increase pay for every eligible employee and fund major capital projects while asking the school board to approve three measures at a special called meeting next week.

The proposal calls for a $717.7 million general purpose budget, a five‑year capital improvement plan and a balanced school nutrition budget. District presenters said the FY27 revenue increase is roughly $17.2 million but that the cost to deliver the planned employee pay adjustments and step increases is about $22.6 million, creating a near‑term gap that the district intends to close by reallocating district‑office resources and other savings.

Why it matters: The package is centered on boosting compensation and holding school staffing ratios steady as enrollment is projected to fall about 2 percent (roughly 1,100 students), a shift that will reduce some teaching positions. Leaders said the choices are intended to keep dollars ‘‘in the classroom’’ and sustain gains the district reported in student proficiency across core subjects.

The plan’s headline measures and trade‑offs

• Pay package: Ms. Himmelgardner, the district finance presenter, said every eligible employee will receive a step increase, certified scales will rise 2.5 percent and the general pay scale will rise 2 percent for FY27. "Every employee in the district will see an increase in their pay next year," she said. The district is also budgeting $100,000 to begin an RFP and market‑value study that will inform a broader 2028 salary realignment.

• Revenue and the gap: Presenters showed five‑year revenue growth and said the FY27 revenue bump of about $17.2 million is the smallest increase in five years. The estimated $22.6 million cost for the pay adjustments exceeds that gain; staff said the district met the gap primarily by reducing central office positions in recent years (more than 50 positions cut over the last two years) and by reallocating resources to schools.

• Staffing and classroom protection: Leaders stressed that school teacher‑to‑student ratios will remain unchanged for a third consecutive year. Miss Loftner described an August‑to‑May stakeholder process, including a staffing committee of principals and regional leaders that informs the district’s school staffing formulas.

• Capital plan and facilities: The FY27 CIP highlights a $12.6 million facilities upgrade line and a $64.7 million K–8 school in Farragut (targeted to open fall 2027). Staff also cited technology and security investments, including money for vestibules, and roof projects at several schools.

• School nutrition: The proposed nutrition budget totals $33.9 million, with roughly $27.4 million federal dollars (commodity entitlement and meal reimbursement) and $5.5 million local revenue. Staff said meal prices will not increase this year.

What district officials said

Dr. Rowswick opened the presentation by framing the budget as the product of multi‑year planning and by thanking district administrators for conserving resources to ‘‘protect the classroom.’’ Ms. Himmelgardner framed the pay investments as part of the district’s multi‑year commitment toward a 2028 salary study and explained the trade‑offs required to fund the increases. Dr. Adams noted a $1.0 million transportation support increase and projected utility cost increases of about $1.6 million. Dr. Wilson described reorganizations for STEM and ELA supports, a $700,000 "true up" for pre‑K services and continued investment in the district’s 865 Academies; he said the district serves about 1,800 pre‑K students.

The process ahead

Superintendent and staff will ask the Board of Education next Thursday to approve the recommended balanced general purpose budget, the five‑year capital improvement plan and the balanced school nutrition budget. If approved by the board, presenters said the budgets will then move to the county commission for final approval in May and June.

What was not decided: The board had not taken a formal vote during the presentation. Specific line‑by‑line reallocations and any additional district‑office reductions were described in broad terms; staff said details will accompany the formal proposal to the board.

Correction and context notes: The presenters referred to the "Teacher Paycheck Protection Act" and to a requirement that educators reach a $50,000 minimum salary by 2027; the presentation did not include a statutory citation. Presenters used multiple spellings for some staff names in the slide narration; this article uses the spelling that appeared most consistently in the transcript.