Knox County Schools proposes $717.7 million FY27 budget that raises pay but exceeds near-term revenue growth

Knox County Schools staff on Monday outlined a proposed FY27 budget that would protect classroom staffing, increase pay for every eligible employee and fund major capital projects while asking the school board to approve three measures at a special called meeting next week.

The proposal calls for a $717.7 million general purpose budget, a five‑year capital improvement plan and a balanced school nutrition budget. District presenters said the FY27 revenue increase is roughly $17.2 million but that the cost to deliver the planned employee pay adjustments and step increases is about $22.6 million, creating a near‑term gap that the district intends to close by reallocating district‑office resources and other savings.

Why it matters: The package is centered on boosting compensation and holding school staffing ratios steady as enrollment is projected to fall about 2 percent (roughly 1,100 students), a shift that will reduce some teaching positions. Leaders said the choices are intended to keep dollars ‘‘in the classroom’’ and sustain gains the district reported in student proficiency across core subjects.

The plan’s headline measures and trade‑offs

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