Sales tax revenue coming in higher than projected this spring may save Blount County Schools from losing nearly $5 million a month in state funding starting in October.
BCS plans to ask the County Commission to approve a change this month to the general purpose school budget that wouldn’t alter the amount the district spends but would change the source of money.
The district planned to use more than $1 million from its undesignated fund balance for costs related to COVID-19. The budget amendment would rely on $580,000 of that coming from an increased sales tax revenue estimate instead.
Local funding rule
Without that infusion of area revenue, BCS would fail a “maintenance of effort” (MOE) requirement from the state, which is designed to keep local governments from cutting education spending.
Area revenue in the BCS general purpose budget totaled $42.58 million for the 2019-20 school year. However that was