KYLE MURPHYStaff Writer

The Tullahoma City Schools (TCS) Board of Education formally adopted its proposed budget for FY26, where it will operate with a budget of $49.8 million.

TCS Finance Director Hank Jordan presented the proposed budget to the school board during its June 17 meeting, where he said the budget had been reviewed and recommended by the finance committee, which he thanked for their time and effort as the process for the budget began in January. He also thanked the board member’s input and feedback during their May study session and during the summer retreat.

According to Jordan, the largest funding source for the budget is from the state through the Tennessee Investment in Student Achievement funding plan at 53.5% of the funding, or $26,256,338. He added this is based on the state’s May estimate and is expected to be updated with a final estimate in late July, so he will return to the board with to amend the budget.

He also listed shared the other funding sources for the budget, including the county taxes at 14%, or $6,941,335, local option sales tax at 13.7%, or $6,839,479, and the local allocation from the city of Tullahoma at 8.2%, or $4,085,489.

Other highlights in the budget include an allocated $692,000 from the state, which is earmarked for the school districts’ teachers’ one-time $2,000 bonus as part of the Tennessee Education Freedom Act, also known as the voucher bill, and is expected to be paid out at the end of July. The school board approved of the one-time bonus back in April, though still making its stance clear that the board opposed the voucher bill. Also on the budget is pulling $3,440,000 from reserves, which will be used to complete the remodel and improvements to the old Jack T. Farrar building that is being converted into the Early Childhood Center. The board had approved to pull from reserves to finish the project in its May meeting.

Jordan also pointed the budget also had funding for one new special education interventionist teacher, one new HMI teacher, three new HMI education assistants, additional funding to the technology department, as equipment and software costs have gone up and a one-time allocation for a new bus. Jordan said that the bus, which was approved to purchase in November 2024, was planned to be in the current year budget; however, they were notified that the delivery was not going take place until the next fiscal year. Jordan concluded his presentation by stating there was also a 2% cost of living adjustment made for the salary schedules.

When the motion to approve the budget was opened for discussion, school board member Rosie Graham thanked Jordan and the finance committee for the work that was put into the budget, highlighting how detailed it was. School board member Gigi Robison added that it was easy to understand and appreciated the way it was presented to the board.

“I could understand exactly how we were funded and where the money was going and I think that’s very important,” Robison said.

Board Chairman Kim Uselton said she appreciated that the discussion for the budget starts in January and it is worked on for months before it comes to the board.

“I really appreciate that,” Uselton said. “We don’t ever have anything that’s a surprise. We have opportunity to know all these things so thank you.”

TCS Director of Schools Dr. Catherine Stephens added there was also an additional 2% s step increase in the budget. She asked Jordan what would be the average pay increase for employees and he said most employees would see about a 3.5% pay increase.

With no further discussion, the school board unanimously approved the budget of $49,890,833. It will now be sent to the city for inclusion in the overall city budget as required by statute.