BEP & BUDGET UPDATE

BEP

I am sure most of you have heard that Knox County Schools will receive more money from the State of Tennessee. The revised BEP or BEP 2.0 will provide Knox County roughly $19 million more dollars ($6M +$13M) than we received last year from the state. We are very fortunate to receive this money and the change to the BEP formula was not an easy task to accomplish. I would like to thank everyone that sent an e-mail, wrote a letter and made a telephone call to Nashville. I thank Mayor Ragsdale for his efforts. He continued to apply pressure to Governor Bredesen and the Legislature by reminding them Knox County was being short changed per the old BEP formula. Please send a "thank you" to the Governor, Senators (Senator Woodson chairs the Education Committee), State Representatives, and Knox County Mayor, Mike Ragsdale. I think the change to the BEP is a step in the right direction. The education of our children should be a key priority! Our children are the future of this county, state and country. We must make sure every high school graduate is prepared for the next level (work force and college).

Knox County Schools Budget

The 2007-2008 budget request sent over to the Mayor and County Commission - $368.08 million dollars. The School Board vote on 4/18/07 was unanimous in approving this budget request. The School Board will meet to discuss and vote on the final budget at the August 8 meeting.

The budget for 2006-2007 - $332.20 million

4/18/07 - requested budget for 2007-2008 - $368.08 million ($350.56M Base Budget + $17.52M Other Needs)

4/18/07 -Requested increase from 06-07 to 07-08- $35.88M

Fixed Increases for FY07-08 Base Budget - $18.36M

Other Needs - for FY07-08 Budget $17.52M

5/9/07 - Mayor Ragsdale recommended the school system receive $344.20M (Property Tax $99.67M, Sales Tax $105.97M, Other revenues $10.24M) and the additional $13.26M from the State of Tennessee (BEP) provides Knox County Schools $357.46M.

Updated Proposed Budget as of 7/19/07

The Superintendent and staff have worked very hard to present us a proposed total budget of $357.46M. The staff identified several key areas (textbooks for FY08-09 paid for out of fund balance and reduction in debt retirement monies) to reduce the original requested amount of $368.08M to $357.46M. The new proposed base budget - $346.52M.

As it stands right now, we are in a very good position. We have the money to fund the base budget ($346.52M) and an additional $10.94M to fund additional needs (literacy program, additional teachers, technology upgrades, emergency notification system and parent portal, raises for non-certified and certified staff, upgrade Administrative Assistant positions to Assistant Principals and additional money to the school security department (5 additional staff + pay increase for entry level officers). I am very cautious about spending our additional money. I do not want to implement programs or hire additional classroom support if we do not think we can absorb the costs in our future budgets. I will do my part to make sure we use your tax dollars to benefit our students.

I will provide the official budget numbers for FY07-08 after our meeting on August 8th.