Members of the Johnson City Board of Education's budget committee discussed a potential loss of funding while proposing a 2017-2018 spending plan on Friday.
Those losses could occur if Washington County Tennessee leaders agree to use cash instead of bonds to cover the costs of two new schools in the locality at a cost of $53 million.
The county is required to allocate a percentage of funding to Johnson City if bonds are purchased. A 40-cent tax increase was passed in order to help fund those school projects.
"A strong portion of the 40 cents that the county increased is going to be placed into a budget line item for capital purposes and the county's intent is that that money be spent exclusively on county schools and none of that would be shared with the city," said JCBE Chair Tim Belisle.
This is the second year in a row that the city school board has proposed a balanced budget. That includes a 2 percent raise for all teachers.
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