Superintendent Dr. Arnold reviewed the district’s upcoming budget priorities and flagged several items the board will see for formal action in the coming weeks, including mandated teacher salary minimums, classified pay adjustments, bus replacements and capital projects.

Dr. Arnold said the district will set beginning teacher pay at $47,000 next year to comply with a state minimum and plans to reach a $50,000 minimum thereafter. He told the board the certified-employee pay increase alone represents roughly $2.1 million of the district’s budget increase; overall TISA-related increases for the district were presented as roughly $2.45 million.

Why it matters: Salaries are the largest component of the district’s operating budget (Dr. Arnold said 83–85% of total budgetary outlays relate to salaries), so state-mandated increases and locally negotiated supplements will materially affect next year’s budget and the county’s maintenance-of-effort contribution.

Other budget highlights presented:
- Classified and hourly pay: the superintendent said the budget includes a 3.5% increase for classified hourly employees, a proposed starting hourly rate of $13, and steps to address “bunched” pay rates so longer-service instructional assistants and custodians receive larger increases. He showed examples of long-tenured hourly employees earning only modestly more than new hires and said the administration will propose targeted differentials.
- Substitute and driver pay: the packet proposes raising noncertified substitute pay and increasing bus driver daily rates to $110, and adding 12 bus monitor positions at a combined cost the superintendent estimated at roughly $135,000.
- Buses and capital outlay: the district expects higher vehicle costs than in prior years (new buses now cost about $160,000 or more). The administration recommended buying two new buses next year; the superintendent said some of that purchase may require a request for reserve funds depending on existing capital balances.
- Athletic and medical services: the budget adds about $45,000 on top of an already-budgeted $60,000 to pay Knoxville Orthopedic Center for expanded athletic training coverage at middle schools.
- Energy loan and capital projects: Dr. Arnold noted $179,798 of capital funds will be used to pay down an ESI energy loan and that roughly $400,000 in capital outlay projects will come to the board for approval.

Board members asked for more detail on bus timing and exact capital balances; Dr. Arnold said he would provide specific figures before the April board meeting. No votes were taken; this presentation was a budget preview and direction to bring formal proposals back for action.