McKenzie School Board Delays Property Tax Vote to 2027 Despite Projected $434,600 Deficit

McKENZIE (February 3) — The McKenzie Special School District (MSSD) Board of Education delayed the controversial tax increase vote until 2027 in a split decision Tuesday night. The topic was first introduced in a November 2025 meeting.

Without a tax increase, the district looks at a projected $434,600 deficit in the 2026-27 school year budget.

In November 2025, Director of Schools Dr. Justin Barden — under the suggestion of district Finance Director Brad Davis — asked the school board to consider raising property taxes by up to 35 cents per every $100 of assessed value to combat the six-figure deficit. If approved, he said the lowest possible tax increase the district would need to employ would be 15 cents per every $100 of assessed value. This would have given the school district an additional $256,000 to work into the 2026-27 budget, decreasing the deficit by over half.

Tuesday night's vote would not have immediately raised taxes; instead it would have allowed the district to ask for legislative permission to raise taxes. It was the board's last chance to take the issue to the General Assembly for it to be approved for the 2026-27 school year.

Before the vote, Davis said, "If we don't have a tax increase this year, we're going to come back next February asking for the same thing. This problem's not going away. It's still going to be here next year."

After a discussion amongst board members, Board Chairman LaShonda Williams made a motion to table the tax increase conversation until June 2026, when budget numbers are more concrete.

The motion went to a vote. Williams, Bobby Young, Misty Aird and Chad Brown voted in favor of tabling the tax increase conversation. George Cassidy, Karen Fowler and Spiridon Roditis voted against tabling the discussion.

Because the majority voted in favor of tabling the conversation, the district will miss its deadline to ask for legislative permission and will be unable to increase taxes for the 2026-27 school year.

"I think there's still a lot of homework that needs to be done," Williams said about her decision to table the conversation. "There's still more money, hopefully, we're getting from the state. There are things that Dr. Barden and Brad are going to look at on their end. There's just still a few unknowns."

Roditis, who voted against tabling, said, "The way that I felt — and I'm not saying this is what happened — is I just don't want to keep kicking the can down the road. My understanding is that we were voting to get it to the legislators and then we would discuss it in June when we have the hard numbers. Then, in June, we can look at the different [tax increase] percentages when we have all of the information. That's why I voted no. I thought, 'Let's get the ball rolling.'"

After the vote, Davis said, "I kind of expected it would end up the way it did. We'll end up making some cuts, and we'll still end up with a deficit when the budget is passed unless something miraculous comes through from the state — which I don't anticipate. Hopefully the board will address it next year. That's all we can ask."

Though discussions are still preliminary, Davis said these budget cuts will result in movement of personnel.

Davis' budget projections are based on the "worst case scenario," he said in November, in which the district receives insufficient Tennessee Investment in Student Achievement (TISA) funding to make up for teachers' salary increases required by the state.

In 2026, MSSD is required to raise the minimum salary for first-year teachers to $50,000 — as a result of Governor Bill Lee's Teacher Paycheck Protection Act. MSSD currently pays starting teachers $48,000 per year. To raise the minimum salary by $2,000 and increase all experienced teachers' salaries proportionally, the school district plans to increase all teachers' salaries by three percent and adjust benefits accordingly. This results in a $350,936.80 increase in salary and benefits cost to the district.

Until summer 2026, Davis will not know the precise funding MSSD will receive from TISA for the 2026-27 school year.

Additionally, the ISM grant is scheduled to expire soon. This grant pays the salaries of Susan Dyer, CTE director, and Beverly Emerson, STEM teacher.

The IDEA Systemic Change grants, which pay for teacher's aides Jenny Allen and Ashli Solomon, also expire soon.

Following the tax vote, the board approved for McKenzie High School Band members (who qualify) to attend the West Tennessee School Band and Orchestra Association All-West Clinic February 12-14, 2026, and for McKenzie High School Future Farmers of America (FFA) students to attend the State FFA Convention in Gatlinburg March 21-25, 2026.

The board also approved, on first reading, language change to the "Safe Relocation of Students" section of the MSSD Board of Education Policy Manual. The changes make the amendment read more clearly, following in line with the state legislature.

Finally, the district approved budget amendments following the purchase of a new driver's education vehicle and the securement of TISA funds based on 2025-26 school testing.

The district paid $15,083.81 for a 2023 Hyundai Santa Fe for McKenzie High School. This money came from funds previously set aside for building improvements in the General Purpose Fund.

The district received $150,277.00 from TISA Outcome Funds for school-based incentives, teachers receiving the TVAAS level 4 and 5 bonus, the end-of-year banquet and other outcome investments.

The MSSD Board of Education meets again Tuesday, March 3.