McKenzie School Board Meets January 3 for Tax Vote

McKENZIE — The McKenzie Special School District Board of Education will meet on Saturday, January 3, 2026, at 9 a.m. to consider a proposed increase in the real estate tax rate to fund the school system. The meeting will take place at 114 Bell Avenue.

During an earlier special-called meeting on October 30, the board suggested a 33 percent increase in the tax rate to fund the 2026-27 school year and beyond. The tax rate change would be effective July 1, 2026, and payable October 1, 2026, to February 28, 2027, without penalty for delinquency.

​The earlier discussed increase adds 25 cents per $100 of assessed value to the current rate of $0.748375, aiming to address an estimated $422,299 deficit for the 2026-27 school year. This represents a 33 percent hike in property taxes, driven by higher salary and benefits costs from Governor Bill Lee’s Teacher Paycheck Protection Act, as well as the expiration of key ISM and IDEA Systemic Change grants.

To make up for the deficit, Davis recommended raising McKenzie’s property tax rate by 25 cents per every $100 of assessed value. The 25-cent tax increase would generate an additional $427,750 in revenue for the school district.

At the January meeting, the board will request approval from the Tennessee General Assembly to raise taxes. If granted, the board can set the rate at the proposed maximum or choose a lower amount.

Beginning in 2026, MSSD must increase the minimum salary for first-year teachers to $50,000 under Governor Bill Lee’s Teacher Paycheck Protection Act. Currently, starting teachers earn $48,000. To comply, the district plans a three percent raise for all teachers and corresponding benefit adjustments, resulting in an additional $350,936.80 in salary and benefit costs.

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.

To cover increased teacher pay and benefits, retain staff previously funded by ISM and IDEA grants, and maintain non-payroll costs, the district requires $422,299.19 in additional funding.