Sullivan Commission to have 1st reading of schools budget Thursday, 2nd reading June 29

BLOUNTVILLE — The Sullivan County Schools proposed 2026-27 general purpose school budget of more than $103.3 million is to undergo first reading Thursday night before the Sullivan County Commission, to be followed by approval on second and final reading at a called meeting Monday, June 29. And the rest of the county budget is to undergo first reading July 16 and second and final reading in late July. That's the plan the commission's Budget Committee agreed to follow during the committee's Wednesday afternoon meeting. It meets the mandate by a private act for the school budget to be approved by June 30, while giving the commission more time to wrangle with the rest of the budget. Normally, a 10-day paid newspaper notice is required for a public hearing before a budget is approved, but county officials said since this is only the school system budget a five-day notice is allowed under state law. SCHOOL PLAN The school budget has been delayed because of uncertainties over Tennessee funding from TISA or the Tennessee Investment in Student Achievement for the General Purpose school budget of $103,316,312 the Board of Education approved at a called meeting June 11. That budget is more than $2.3 million beyond the approved 2025-26 budget of $100,965,228. The actual 2024-25 budget ended up $95,601,447. The actual 2026-27 budget will not be known until after the fiscal year ends June 30. The proposed Federal Projects Budget is $6,281,730.27, funded by federal monies, while the self-supporting School Nutrition Fund is to be $7,084,758 and the Discovery Academy Budget funded wholly by the state is $240,000. Sullivan Director of Schools Chuck Carter and Board of Education Chairman Matt Price presented the county schools budget, focusing on the general fund. Additional expenses of $2.147 million included a $450,000 health insurance cost increase, $280,000 in loss of local revenue, raises of 1.5% of $210,000 and support staff step increases costing $50,000. Moving a data and accountability specialist to a full year contract added $11,500, while adding four full-time pre-kindergarten assistants cost $160,000, increasing hours for a mental health and school counseling coordinator cost $9,500, additional school resource offices $236,000 and four additional associate or assistant principals, one each at Central Heights, Miller Perry and Rock Springs, Sullivan Heights elementary schools. Those schools have four classroom teachers who fill in for the principal as needed. Commissioner Mark Ireson asked why additional positions were created with money tight. Carter and Price responded that student safety, more SROs and a backup principal are needed. The school budget requests no additional property tax funding. Commissioner David Akard said it would not be fair to present the school budget to the full 24-member commission Thursday for a vote. If things continue, the estimate is that the fund balance required to balance the general purpose budget, at least on paper, will be $11,781,414, compared to $9,705,673 used in fund balance to make the 2025-26 budget come out even. However, school and budget officials said the actual amount of fund balance used would not be known until about August. Historically, the school system and county overall overestimate expenditures and underestimate revenues. The projected fund balance to be left at the end of 2025-26 is $17,533,417.64, which means if all the fund balance used on paper to fund the budget is used, the fund balance to start 2026-27 could drop to less than $9 million. RAISES, PROPERTY TAX SPLIT CHANGE The committee discussed a proposal, presented by Assistant Finance Director Leslie Bonner, to move 2 cents of the county property tax rate revenues away from the Highway Department and back to the general fund. In the 2025-26 budget, 2.6 cents was moved from the general fund to highways, but with the reappraisal each penny generates more money. She said the money is needed to cover more than $1 million in additional retirement and health insurance increases outside schools. Highway Commissioner Scotty Murray, who is not seeking reelection after nearly eight years in office, questioned the amount although he said longtime department surveyor Jim Montgomery said the department could get along by using surplus or fund balance in its budget. Committee Chairman Dwight King said he wasn't comfortable taking that much property tax revenue away from the highway operation. Bonner said the proposal is to shift the general fund property tax rate share from 63.337 cents to 65.377 cents and make the highway fund share 9.071 cents to 7.071 cents. Each penny generates about $69,170 at 95.5% collection rate or $6,801,897,742. Yet to be addressed by the committee are raises. Bonner gave the committee a sheet that showed a 1% raise for all county employees except school employees would cost the county $518,084, a 2% raise 1,036,167 and a 3% raise $1,554.251. In addition, committee members said an unknown is the final cost of the new county jail, which Commissioner and county Mayor hopeful Zane Vanover, who faces no Aug. 6 general election competition, said may be turned over to the Sheriff's Office in weeks, to be followed by training of staff for the new facility.