Mayor Mike Ragsdale today proposed a budget for Fiscal Year 2008-2009 of $640.6 million that protects essential services for county residents, reduces the County General Fund by almost $6 million, and avoids the employee layoffs that have impacted other governments. The proposed budget was included in his 2008 State of the Community address held at the new Hardin Valley Academy. A major announcement in the Mayor’s address was that there would be no property tax increase for the ninth consecutive year, despite difficult economic conditions.
In order to avoid a tax increase or staff layoffs, it was necessary to impose a six-month hiring freeze. All Executive Branch departments will remain under the hiring freeze until January 1, 2009, and the Mayor strongly encourages other county departments to observe the hiring freeze as well.
The single largest item in the Knox County budget is public education. Serving some 53,000 children countywide, the school system is currently operating on a budget of $357.4 million. The Mayor proposes a budget of $370 million for FY 2009.
Ragsdale said that over the past six years “the County has increased its investment in Knox County Schools by $90 million annually. Nothing is more critical to the success of our community than an outstanding public school system.”
Highlights from the Mayor’s budget recommendation include:
- School funding increased by $12 million over FY 2007-2008.
- General fund reduced by almost $6 million.
- A six-month hiring freeze for the Executive Branch.
- Reduced budgets throughout the government.
- No layoffs of existing employees.
- Creation of the Office of the Knox County Inspector General.
- Two percent raise plus one step increase for eligible employees, per the Human Resources salary and classification plan.
The proposed budget also includes funds to complete on-going work that is important to all Knox County residents:
- Projects scheduled for completion in FY 2009 include:
- Powell Middle School Expansion and Renovation
- Hardin Valley Academy
- Carter Senior Center
- Regional Tommy Schumpert Park
Mayor Ragsdale acknowledged that the prevailing economic conditions made developing the budget difficult. He stated, “Above all else, it was important that we bring forward a budget that did not include a tax increase. Many families are struggling to make their mortgage payments; others have been hard-hit by rising gas prices. We cannot turn to our citizens and ask them to do more under conditions like these.”
The Mayor went on to commend his staff for their hard work in developing the budget recommendation, particularly the Knox County Finance Department and Chief Financial Officer John Troyer: “John and his staff are more than public employees. They are public servants in the truest sense of the words, and I am proud to call them my colleagues.”
The proposed budget will be presented to County Commission for approval at its May meeting. A full transcript of the Mayor’s speech and the proposed budget are available online at http://www.knoxcounty.org/fy09budget.
