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The Franklin County Commission unanimously approved Franklin County’s $110.22 million budget for the 2026 fiscal year on Monday with — much to property-owners’ delight — no tax increase.

The main highlight is a 3.5 percent across-the-board pay increase for county and School System employees.

The funding involves $57.5 million going to the School System with the county government receiving $52.72 million.

By making cuts to positions through attrition, the School System reduced its overall budget by $1.4 million, and the Finance Committee later concurred.

After considering several different options, the School Board settled on the 3.5 percent across-the-board increase. Initially, 3.5 percent was proposed for certified employees with 2.5 percent going to classified workers.

However, Board Member Sara Liechty had recommended the system go with an overall 3.5 percent increase on grounds that classified employees make less than the certified positions, and it would be unfair to have their pay increase be at a lesser percentage.

The school budget the Finance Committee approved calls for taking $1.3 million from reserve funds to balance the budget, leaving $8.9 million as an undesignated fund balance that can be used to cover future shortfalls.

The county government side of the budget calls for using $2.4 million in reserve funds, leaving $12.5 million in the line item.

The School Board had earlier discussed potentially creating a position for a system-wide public relations official and asked Jenny Phillips, Franklin County deputy finance director, to see if the budget had enough leeway to be able to provide about $100,000 for the position’s salary and benefits package and recalculate the final numbers.

However, the board later agreed to have someone from within the system fill the position in combination with their regular duties.

Although the School System’s budget draft includes the 3.5 percent across-the-board pay increase for all system employees, county commissioners are cautioning about what the future may hold with declining enrollment and how it could affect future funding coming from the state of Tennessee.