A Financial Study of The Carter County School District

A
Financial Study of the Carter County School District

Dr. Keith D. Brewer

Tennessee Education and Management Services (TEAMS)

Table of Contents

Abstract …………………………………………………………………………………………………………………………. 1

Purpose of Study ……………………………………………………………………………………………………………. 2

Enrollment Analysis of the School District and Schools .………………………………………………….. 3

Cost Analysis of Schools and Other Buildings ……………………………………………………………………5

Analysis of Teacher Salary Schedule …………………………………………………………………………………10

Analysis of 2020 – 2021 Budget ………………………………………………………………………………………..16

Reduction of Costs ……………………………………………………………………………………………………………18

School Restructuring or Blending ………………………………………………………………………………………20

School Culture …………………………………………………………………………………………………………………..22

Findings of Study ……………………………………………………………………………………………………………….24

Conclusions of Study ………………………………………………………………………………………………………….26

References ………………………………………………………………………………………………………………………...39

Abstract

A research study was conducted in the Carter County School District by employing
observational methods and interviews. The descriptive study includes findings and conclusions
that identify strategies for reducing recurring expenditures in the school district’s budget.
1
Purpose of Study
The Purpose of this study to provide financial information to the Carter County Board of
Education and director of schools that should:
• Assist the school board and director of schools in rendering an informed

decision about reducing costs and reallocating resources for the 2021 – 2022
school budget.

• Assist the school board and director of schools in rendering an informed
decision to enhance the teaching and learning environment.

The study generates a snapshot of the financial status of the district by exploring
methods of conserving fiscal resources. Strengths and weaknesses are identified in the school
budget that enables the school board and director to modify and reallocate expenditures in a
prudent and efficient process.
The cost reduction study does not yield recommendations or decisions and is submitted
without predispositions and biases by the Tennessee Education and Management Services
(TEAMS) or the TEAMS consultant.
2
Enrollment Analysis of the School District and Schools
The Carter County School District is located in upper East Tennessee. The school district
has an enrollment of 4,763. The Carter County School District has nine (9) elementary schools,
one (1) middle school, four (4) high schools, and one (1) alternative school for a total of fifteen
(15) schools.
Since the state of Tennessee funds PreK from state dollars that are separate from the
Basic Education Program funding, PreK funds are not included in the calculations for the Carter
County School District.
Carter County Schools

Central Elementary (K-8) Enrollment - 219 BEP Positions: 9.61 # of Teachers: 14
Cloudland Elementary (K-6) Enrollment - 233 BEP Positions: 10.52 # of Teachers: 14
Hampton Elementary (K-8) Enrollment - 522 BEP Positions: 22.6 # of Teachers: 24
Happy Valley Elem. (K-8) Enrollment - 404 BEP Positions: 19.43 # of Teachers: 23
Hunter Elementary (K-8) Enrollment - 401 BEP Positions: 17.92 # of Teachers: 21
Keenburg Elementary (K-8) Enrollment - 263 BEP Positions: 10.63 # of Teachers: 17
Little Milligan Elem. (K-8) Enrollment - 118 BEP Positions: 5 # of Teachers: 9
Unaka Elementary (K-8) Enrollment - 216 BEP Positions: 9.49 # of Teachers: 12
Valley Forge Elem. (K-8) Enrollment - 180 BEP Positions: 8.41 # of Teachers: 13
3
Happy Valley Middle (5-8) Enrollment - 405 BEP Positions: 16.2 # of Teachers: 20
Cloudland HS (7-12) Enrollment - 263 BEP Positions: 11.27 # of Teachers: 26
Hampton HS (9-12) Enrollment - 436 BEP Positions: 19.11 # of Teachers: 28
Happy Valley HS (9-12) Enrollment - 554 BEP Positions: 24.22 # of Teachers: 29
Unaka HS (9-12) Enrollment - 341 BEP Positions: 14.6 # of Teachers: 24
Siam Academy (Alternative) Enrollment - 24 BEP Positions: 1 # of Teachers: 3
Total: 15 schools District Enrollment: 4,587 BEP Positions: 200.26 # of Teachers: 277
Excluded PreK and CDC

An analysis of the school profiles reveals that the Carter County School District has 277
regular education teachers employed in grades K – 12 excluding PreK and CDC teachers, and the
Basic Education Program (BEP) paid for 200.26 teachers. Subtract the number of teachers that
the BEP funded 200.26 from the number of teachers hired 277 equals a difference of 76.74
teachers that the district is paying their full salaries and spending a total $2,913,971 local
revenue (estimated amount $37,972 for a teacher at Step 1 with a BS/BA degree on the Carter
County Board of Education (CCBOE) 2020 – 2021 salary schedule X 76.74 = $2,913,971).
It is normal for Tennessee school districts to have more teachers outside of the BEP
distribution formula at middle schools and high schools. For example, Hampton High School
has 8.89 instructional teaching positions that are not funded by the BEP funding formula, and
Happy High School has 4.78 instructional positions that are not funded by the BEP funding
formula.
4
The Carter County Central Office generates 7.48 system-wide supervisors that is funded
by the Basic Education Program, but the Carter County Board of Education employs 5 system-
wide supervisors. The central office exhibits a positive variance of 2.48 (Tennessee State
Department of Education Basic Education Program Allocation, 2020 – 2021).
Cost Analysis of Schools and Other Buildings
A review was conducted to determine the cost of water, propane gas, and electricity.
The following summary of utility costs is given for each building in the Carter County School
District. The billing period was for the 2018 and 2019 school years. Utility costs vary from year
to year due to the weather. Costs may be higher one year and less the next year (CCBOE, 2018
– 2019).
All schools and school annexes are displayed and give the name of the building, the cost
of electricity, natural/propane gas, water and total utility costs. The maintenance, central
office, transportation, and technology buildings are excluded from this analysis.
Building Electricity Gas Water Total Cost
Central $40,446 $13,853 $2,605 $56,904
Cloudland Elem. $80,972 $2,169 $83,141
Cloudland HS $50,091 $23,521 $4,244 $77,856

Building Electricity Propane Gas Water Total Cost
Cloudland HS Mod. $3,889 $3,889
Cloudland HS Voc. $23,198 $9,315 $235 $32,748
Cloudland HS Athl. $8,533 $8,533
Hampton Elem. $133,399 $23,930 $3,999 $161,328
Hampton Elem. Mod. $5,469 $5,469
Hampton HS $45,178 $25,448 $3,699 $74,325
Hampton HS Mod. $4,218 $4,218
Hampton HS Voc. $52,804 $582 $53,386
Hampton Ag. & GH. $10,443 $4,394 $14,837
Hampton HS D/Con. $11,430 $11,430
Happy Valley Elem. $53,522 $14,599 $6,731 $74,852
Happy Valley E Mod. $15,773 $15,773
Happy Valley Middle $73,150 $2,293 $75,443
Happy Valley HS $60,688 $17,668 $17,433 $95,789
HV HS Little House $2,689 $2,689
Happy Valley Voc. $27,046 $1,621 $1,324 $29,991
HVH Football Field $9,485 $1,755 $11,240
HVH Baseball $2,689 $2,689
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HVH Softball Field $3,606 $3,606
Hunter Elem. $52,634 $17,279 $1,553 $71,466
Hunter Mod. $15,534 $15,534
Keenburg Elem. $40,432 $16,900 $7,030 $64,362
Keenburg Mod. $19,531 $19,531
Little Milligan $23,094 $11,787 $2,832 $37,713
Little Milligan Mod. $8,888 $8,888
Siam Academy $13,753 $12,235 $677 $26,665
Unaka Elem. $31,583 $21,800 $546 $53,929
Unaka Elem. Mod. $16,242 $667 $16,909
Unaka Elem. Ballfield $300 $300
Unaka HS $59,533 $19,463 $1,970 $80,966
Unaka HS Shop $1,803 $302 $2,105
Unaka Voc. $30,043 $30,043
Unaka Band Room $3,804 $3,804
Unaka CDC Mod. $2,039 $2,039
Unaka Athl. Field $3,074 $3,074
Unaka HS Ballfield $300 $300
7
Valley Forge Riverview $5,138 $5,138

(Modular Classrooms)

Valley Forge Elem. $56,700 $10,950 $9,210 $76,860
An analysis of the utilities did not reveal any extraordinary expenditures. An energy
retrofit for all schools would yield long term savings, but short term savings would be absorbed
in the cost of the equipment and labor installation.
The Carter County Board of Education has an implementation plan for routine repairs
and renovation of school buildings. The district’s maintenance department will do the routine
repairs and renovations. Major renovations and repairs will require outside contractors due to
the lack of time or expertise of the school district’s maintenance personnel.
Roof renovations are projected and estimates of cost were supplied for this report by
the supervisor of the maintenance department for Carter County. A list of schools and
estimated cost is given below:
School Replacement Schedule Roof Area Estimated Cost
Central Elem. 5 years 7,383 sq. ft. $88,596
Cloudland (K-6) 0 0 0
Hampton (K-8) 0 0 0

8
School Replacement Schedule Roof Area Estimated Cost
Happy Valley Elem. 2021-2022 632 sq. ft. $7,584
Happy Valley Middle 2021-2022 1,054 sq. ft. $12,648
Happy Valley Middle Five Years 8,755 sq. ft. $105,300
Hunter Elem. 0 0 0
Keenburg Elem. 2021-2022 495 sq. ft. $5,940
Little Milligan Elem. 2021-2022 256 sq. ft. $3,072
Unaka Elem. Five Years 1,551 sq. ft. $18,612
Valley Forge Elem. 0 0 0
Cloudland HS Five Years 7,104 sq. ft. $85,248
Hampton HS 0 0 0
Happy Valley HS 2022-2023 1,537 sq. ft. $18,444
Unaka HS 0 0 0
Siam Academy 2021-2022 13,062 sq. ft. $156,744
A representative from the Tennessee Division of fire Prevention Codes Enforcement
Section has inspected all schools, and deficiencies were detected. Deficiencies were minor and
corrected. All schools were approved.
The Carter County Maintenance Department utilizes a facility checklist that is congruent
with the state safety inspector’s and district building insurance company’s checklists for
validation of safety.
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Analysis of Teacher Salary Schedule
The teacher salary schedule in Tennessee is based on two factors. The amount of
experience (Steps) and the type of degree (BS, BA, MEd, EdS, EdD, or PhD) that the teacher
possesses will determine the amount of salary for the teacher. For example, a teacher in Carter
County will receive $37,972 with a BS/BA degree at Step 1 (Carter County Salary Schedule,
2021-2022).
A teacher’s salary consists of revenue given by the state and the local education agency
(LEA). A state salary is based on earned positions from the Basic Education Program (BEP). The
state gives 70% of the revenue for earned BEP positions based on the Instructional Component
of the BEP handbook. Salary improvements from the state are given for earned BEP positions,
and salary improvements are given only on the state portion of the teacher’s salary. All
positions, not earned or required by the Basic Education Program, are paid by the school
district (Basic Education Handbook, 2020 – 2021).
According to a report from the Tennessee Education Association (TEA Salary Ranking,
2019 – 2020), Carter County was ranked 114th in the state on their full salary schedule. The
district was ranked 109th in the state in salary paid to their first year teachers with a Bachelor of
Science/Arts degree and 113th for a Bachelor of Science/Arts degree with 10 years of
experience. Carter County was positioned at 120th for a Bachelor of Science/Arts degree with
maximum experience.
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The Tennessee Education Report reveals that the Carter County school district was
placed in the lower tier for teachers with an earned Master of Education degrees (MEd). The
school district was ranked 117th for teachers that possess a MEd at Step 15. Carter County was
positioned at 100th for teachers with a MEd and minimum experience.
A review of the 2020 –2021 salary schedules of the contiguous school districts is given
below for comparison and analysis:

District Degree Step (Experience) Salary
Carter Co. BS 0 $36,741

BS 1 year $37,972
BS 20 years $45,094
MEd 0 $40,420
MEd 1 year $40,584
MEd 20 years $50,383
MEd + 30 hours 1 year $43,094
MEd + 30 hours 20 years $53,432
EdS 1 year $44,028
EdS 20 years $55,656
EdD or PhD 1 year $46,327
EdD or PhD 20 Years $60,463

Elizabethton City BS 0 $36,819
BS 1 year $38,595
BS 15 years $50,512
MEd 0 $39,990
MEd 1 year $42,021
EdS 1 year $45,661
EdD or PhD 15 years $60,897

Johnson City BS 0 $42,139
BS 1 year $43,067

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District Degree Step(Experience) Salary
Johnson City BS 30 years $62,354

MEd 0 $46,185
MEd 1 year $47,201
EdS 1 year $51,208

Kingsport City BS 0 $44,300
BS 1 year $44,700
BS 30 years $66,350
MEd 0 $49,300
MEd 1 year $49,700
EdS 1 year $54,200

Sullivan County BS 0 $36,303
BS 1 year $36,438
BS 30 years $46,764
MEd 0 $39,250
MEd 1 year $39,674
MEd + 45 1 year $43,226
MEd + 45 30 years $54,806
EdS 1 year $44,668

Unicoi County BS 0 $36,886
BS 1 year $38,132

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District Degree Step(Experience) Salary
Unicoi County BS 25 years $45,746

MEd 0 $40,359
MEd 1 $41,707
EdS 1 year $46,234

Washington County BS 0 $37,762
BS 1 year $39,406
BS 25 years $48,017
MEd 0 $42,638
MEd 1 year $43,660
MEd + 30 1 year $46,224
MEd + 30 25 years $58,749
EdS 1 year $46,968

Johnson County BS 0 $37,596
BS 1 year $37,853
BS 20 years $42,745
MEd 0 $41,715
MEd 1 year $41,973
MEd 30 year $45,320
EdS 1 year $45,320

A comparison of the Carter County salary schedule with the Elizabethton City salary
schedule displays that a teacher with no experience has a salary lower than the teacher in
Elizabethton City. Likewise, an Elizabethton City teacher at Step 1 has a higher salary
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than a Carter County teacher at Step 1 with a Bachelor of Education/Arts degree. For example,
a Carter County teacher with a BS degree that has zero experience has an increased salary of
$78 per year ($36,819 – 36,741 = $78) when compared to an Elizabethton City teacher with the
same teaching credentials. The amount of salary that an Elizabethton City teacher receives is
larger than a Carter County teacher’s salary at Step 1 with a BS or BA degree at $623 per year
($38,595 – 37,972 = $623).
Carter County’s salary schedule displays salary improvements for a maximum of 20
years, while Elizabethton City displays salary improvements for 15 years. The salary schedule
for Carter County shows a decline in revenue for their teachers in all other Steps and earned
degrees in comparison to Elizabethton City School District. In review, Elizabethton City teachers
will earn more revenue and receive greater Step improvements on a short term basis than the
Carter County teachers.
The Unicoi County School District has a salary schedule that yields salary Steps for 25
years, and the Carter County School District displays a salary schedule with Steps of 20 years.
The salary schedule for the Carter County School District exhibits less revenue for its teachers
when their salary schedule is compared to Unicoi County’s salary schedule for a teacher with
zero experience. The same result is discovered for a teacher at Step 1 with a Bachelor of
Science/Arts degree. Carter County’s salary schedule is not competitive with Unicoi County’s
salary schedule and a loss of teachers should be expected.
A comparison of the Sullivan County School District’s salary schedule with the Carter
County salary schedule reveals that the Carter County School Districts exceeds or shows minor
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disparity in teacher salaries. Carter County teachers receive Step increases for 20 years, and
Sullivan County teachers receive Step increases for 30 years. The Step increases for the Carter
County teachers exceeds or are equivalent to Sullivan County’s salary schedule and are received
in a shorter amount of time than for Sullivan County teachers. The Carter County School
District should not experience a loss of teachers to Sullivan County schools.
Johnson City School District and the Kingsport City School District exhibit salary
schedules that pay more to teachers than the Carter County School District. Johnson City and
Kingsport City have outstanding salary schedules for their teachers that cannot be equalized by
the Carter County School District.
The Washington County School District’s salary schedule displays superior salary
improvements for a maximum of 25 years, while Carter County displays salary improvements
for 20 years. The salary schedule for Carter County shows a decline in revenue for their
teachers in all Steps and earned degrees in comparison to the Washington County School
District. A high probability exists that the Carter County School District will lose teachers to the
Washington County School District.
Johnson County School District’s salary schedule is somewhat different than the other
salary schedules that have been reviewed. Johnson County’s teacher salary schedule has 90
Steps and rewards teachers whose composite performance scores on the TEAM evaluation are
Levels 5, 4, and 3. Level 5, 4, and 3 teachers are rewarded with Step increases added to their
annual salary (incentive pay). Advanced degree attainment increases the salary of Johnson
County teachers by an increase in Steps.
15
A comparison of the Carter County teacher salary schedule with the Johnson
County teacher salary schedule reveals that the Carter County salary schedule is less
complicated and does not implement an incentive pay plan. The teacher pay schedule for
Carter County is superior to the Johnson County teacher salary schedule. Carter County will not
lose teachers to Johnson County.
Analysis of 2020 – 2021 Budget
The school board and director of schools are to be commended for maintaining a quality
teaching and learning environment. The pupil/teacher ratio is excellent, and the school district
has several outstanding CTE programs for high school students. The 2020 – 2021 budget
reflects the desire of the Carter County School Board of Education and the director of schools to
maintain this foundation of academic excellence by constructing and approving a $42,464,461
for the current budget year.
The Carter County School District is one of the Tennessee school districts whose fiscal
management is controlled by the County Financial Management System of 1981. This system
requires a county financial management committee that consists of the county mayor,
supervisor of highways, director of schools, and four members elected by the county legislative
body. The committee establishes policies, procedures, and regulations to implement a sound,
efficient county financial system.
The county financial management committee appoints a director of finance. The
director oversees the operation of the department of finance and installs and maintains a
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purchasing, payroll, budgeting, accounting, and cash management system for the county that
includes the county education department.
Carter County is one of twenty-two counties that have adopted the County Financial
Management System of 1981. The 1981 Act requires the school district to meet regularly for
approval and reporting of education expenditures, but still conveys control of line items to the
county board of education.
The Carter County Commission and board of education operate in a cordial and efficient
manner. Their relationship is good and does not present any problems for the school
district.
During the last three years, a decline in enrollment has been observed by the Carter
County School District. As a result of the declining enrollment, the school district had to create
an early retirement incentive for employees last year that saved the school district $1,500,000.
The enrollment has decreased for the 2020 – 2021 school year, and the district is currently
operating on the “stability rule” that allows school districts to maintain its level of funding
based on last year’s enrollment numbers. Unless student enrollment increases next year, cost
reductions must be implemented.
The 2020 – 2021 school budget for the Carter County Board of Education is balanced
and displays an estimated unassigned fund balance of $8,800,000. According to promulgated
budgetary guidelines all Tennessee school districts must maintain a 3% unassigned fund
balance to offset non-recurring expenditures. The Carter County Board of Education has met
this budget mandate ($42,464,461 X .03 = $1,273,933).

17
The declining enrollment must be considered for the preparation and balancing the
school budget for the 2021-2022 school year without utilizing the unassigned fund balance. A
reduction in force must be congruent with the decline of enrollment. Hypothetically, a school
district may qualify for 300 teaching positions that are funded by the state, but the school
district may have hired 400 teachers. The district is paying for the salary and fringe benefits for
100 teachers (400 teaching positions – 300 BEP teaching positions = 100 teaching positions). If
the 100 teachers are rehired by the district, this expenditure becomes a recurring expenditure,
and the unassigned fund balance should not be used to hire these 100 teachers.
Reduction of Costs
Many methods have been recommended by school finance experts to reduce costs, and
school districts have utilized those methods (Alexander, 2015). The methodology that a school
district implements is dependent on the financial situation of the local education agency (LEA).
The following menu of strategies have been implemented to reduce costs in Tennessee school
districts.
1) Elimination of curriculum programs that have become obsolete

and not used by teachers

2) The use of technology for virtual classrooms and labs
3) Energy management systems
4) Reduction in force (RIF)
5) Elimination transportation
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6) Elimination of sports
7) Restructuring or blending of schools
8) Increasing the pupil/teacher ratio
9) Four day week
10) Outsourcing janitorial and cafeteria services
Some of these practices to produce cost savings in a school district are draconian (four
day week and reduction in force). Several of these practices are for a short period time without
a reduction in costs (elimination of transportation and sports). A school district should
implement practices that will save revenue and not interfere with closing the student
achievement gap.
Energy management will procure long term savings, but short term or immediate
savings will not be realized. The short term revenue that has been saved will be absorbed for
purchase of equipment, controls, software, and installation. The school district will save
revenue after the vendor has been paid with short term savings. Depending on the size of the
district, a cost saving for reallocation in the school budget should be achieved in a ten or twenty
year period.
The use of technology will prove to be a cost saving practice. A virtual school may add
new revenue to the school district’s budget by enrolling students from private schools, or
students taught at home. School districts that are unable to hire a foreign language
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teacher/teachers to accommodate more than one high school have utilized long distance
learning. Chemistry, physics, and biology labs avoid dangerous and expensive chemicals and
supplies for experiments by purchasing software for computer labs.
Increasing the pupil/teacher ratio may assist in reducing the operational costs of a
school district. Tennessee school districts must stay within the mandated pupil/teacher ratio
and must not have divided grades (4th and 5th grades with one teacher in the same classroom).
For example, a school district may have a pupil/teacher ratio of 18 students for each 4th grade
teacher for the coming school year. Since the BEP yields a 4th grade teaching position for every
25 students and increase of the pupil/teacher ratio in the fourth grade for the school district
may serve as a cost reduction. Teachers that resign or retire many not need to be replaced.
The school district has had a reduction in force without giving teachers a furlough that have
tenure or in their first year as a teacher.
School Restructuring or Blending
School restructuring or blending is the practice of combining two or more schools for
educational or economic benefits. A reorganized school can offer an expanded curriculum and
reduce costs through economy of scale. On the other hand, merging of schools can incur
numerous liabilities, and especially if the schools to be closed are the sole providers of
community services.
Restructuring of schools has both curricular and financial advantages. First, it often
enables the merged schools to share courses and facilities. Sharing results in a more varied
20
curriculum because fewer classes are dropped due to low enrollment. Special education, art,
and music do not have to share full-time teachers with other schools. Expenditures for capital
improvements and basic maintenance are reduced because there is no need to upgrade or
maintain duplicate facilities (Nelson, 1985).
Because the restructuring or the blending of schools often combine classes and increase
their size, fewer teachers need to be employed by the school district. Blended schools do not
normally employ more administrative staff.
Thus, school closure is usually an immediate savings for the school district.
A greater savings is realized when the vacated building is sold to corporation or another
business at market value for redevelopment. If the school district keeps the building, the saving
of revenue for closing the school is lost on keeping the building maintained or using the building
for other school purposes.
According to educators (Beckner and O’Neal 1980) the liabilities of consolidation are the
loss of interaction between faculty and administration, loss of the “family atmosphere” within a
school, and the loss of smaller pupil/teacher ratios.
Small schools have a family atmosphere. Every administrator and teacher that work at
the school know the names of all the students in the school. Every administrator and teacher at
the school know the names of the parent/guardian and grandparents of the students. Teachers
or support staff may actually have gone to the school and live in the community.
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To summarize, both the positive and negative aspects of restructuring or blending of schools
are:
• Positive Aspects
o Saves money.
o Improves student achievement.
o Improves the curriculum with more course offerings.
o Enables the school district to focus resources.

• Negative Aspects
o Causes the transfer of teachers.

o Eliminates jobs.
o Creates low morale of teachers.

§ Negative Aspects
o Causes a loss of family atmosphere.

o Increases the pupil/teacher ratio.
o Causes a loss of the community’s identity.

School Culture
The term school culture generally refers to the beliefs, perceptions, relationships,
attitudes, and written and unwritten rules that shape and influence every aspect of how a
school functions, but the term also encompasses more concrete issues such as the physical and
emotional safety of students, the orderliness of classrooms and public spaces, or the degree to
which a school embraces and celebrates racial, ethnic, linguistic, or cultural diversity (The
Glossary of Education Reform, 2013).
Like the larger social culture, a school culture results from both conscious and
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unconscious perspectives, values, interactions, and practices, and it is heavily shaped by a
school's particular institutional history. Students, parents, teachers, administrators, and other
staff members all contribute to their school’s culture, as do other influences such as the
community in which the school is located, the policies that govern how it operates, or the
principles upon which the school was founded.
Broadly defined, positive school cultures are conducive to professional satisfaction,
morale, and effectiveness, as well as to student learning, fulfillment, and well-being (Bolman
and Deal,)1987). According to Lee Bolman and Terrance Deal the following list is a
representative selection of a few characteristics commonly associated with positive school
cultures:
• The individual successes of teachers and students are recognized and celebrated.
• Relationships and interactions are characterized by openness, trust, respect, and

appreciation.

• Staff relationships are collegial, collaborative, and productive, and all staff members
are held to high professional standards.

• Students and staff members feel emotionally and physically safe, and the school’s
policies and facilities promote student safety.

• School leaders, teachers, and staff members model positive, healthy behaviors for
students.

• Students are consistently held to high academic expectations, and a majority of
students meet or exceed those expectations.

• Educational resources and learning opportunities are equally distributed to students,
including minorities and students with disabilities.

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• All students have access to all the academic support and services they may need to
succeed.

Every school district has a culture. Every school has a culture, and all school cultures are
unique. Therefore, a restructuring or merging of a school must blend the culture of the
restructured school to the receiving school of the students.
Findings of Study
Finding #1. The Carter Count School District has six schools with less than 300
students. The following schools have less than 300 students: Little Milligan Elementary (118),
Valley Forge Elementary (180), Central Elementary (219), Unaka Elementary (224), Cloudland
Elementary (233), Keenburg Elementary (263), and Cloudland High School (263).

Finding #2. Excluding special education, CTE, and other federal licensed teachers the
Basic Education Program funds a total of 200.26 teachers for the 2020 – 2021 school year, but
the Carter County School District has employed 277 teachers to teach for this school year.

Finding #3. The school district enrollment has been in a decline for the last three
years.

Finding #4. All schools in Carter County have excellent pupil/teacher ratios.
Finding #5. The BEP funds schools with less than 225 students with a part-time
principal (.5). Little Milligan Elementary, Central Elementary, and Unaka Elementary qualify for
a .5 or ½ of a principal.

Finding #6. The BEP funds assistant principals for schools that have a student
enrollment of 660 – 879. The Carter County School District does not have any elementary
schools that qualify for assistant principals. With the exception of Little Milligan Elementary
and Valley Forge Elementary, all the elementary schools have a full-time assistant principal.

Finding #7. To qualify for BEP funding for secondary assistant principals, middle
schools and high schools must have a student enrollment between 650 – 999 students. The
BEP funds a .5 assistant principal for schools that exhibit an enrollment of 300 – 649 students.
The middle school and all high schools have full-time assistant principals in the school district.
Cloudland High School does not qualify for an assistant principal.
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Finding #8. The central office or administrative building receives BEP funding for 5.84
system – wide supervisors, 1.41 for special education supervisors, and .23 for a CTE supervisor.
All supervisory positions are paid by the Basic Education Program (state and federal funding).

Finding #9. Carter County’s salary schedule displays a salary improvement for a
maximum of 20 years, while Elizabethton City displays salary improvements for 15 years.
Elizabethton City Teachers will earn more revenue and receive greater step improvements on a
short term basis than the Carter County teachers. Teachers in Carter County should experience
a loss of teachers to Elizabethton City.

Finding #10. Carter County’s salary schedule is competitive with Unicoi County’s salary
schedule and should prevent a loss of teachers to Unicoi County.

Finding #11. The Carter County School District should not experience a loss of teachers
to Sullivan County schools.

Finding #12. The Carter County School District should not experience a loss of teachers
to Johnson County.

Finding #13. The Carter County School District salary schedule is not competitive with
the Washington County School District salary schedule. There is a high probability that Carter
County will lose teachers to Washington County.

Finding #12. Johnson City and Kingsport City have outstanding salary schedules for
their teachers that cannot be equalized or exceeded by the Carter County School District.

Finding #13. The Carter County School District is one of the Tennessee school districts
whose fiscal management is controlled by the County Financial Management System of 1981.

Finding #14. The school district is currently operating on the “stability rule” that allows
school districts to maintain its level of funding based on last year’s enrollment numbers. Unless
student enrollment increases next year, cost reductions must be implemented.

Finding #15. The Carter County Board of Education has met the 3% unassigned fund
balance to offset non-recurring expenditures.

Finding #16. BEP funds 5.84 secretaries for the Carter County Central Office. The
Central Office has 9 secretaries that are listed. 3 secretaries are paid with federal revenue
(special education, federal projects (Title I), and food service). A cost reduction does exist with
secretaries. The director of schools with Central Office supervisors needs to review job
descriptions to determine the need for a secretary for each supervisor or program.

25

Finding #17. The Central Office Staff lists 21 personnel. The BEP does not fund any of
those positions. Federal revenue may fund in part or fully 8 of those positions. A cost
reduction does exist. The director of schools with Central Office supervisors needs to review
job descriptions to determine the need for staff for these programs.
Conclusions of Study
The trend of a declining enrollment has caused the school district to be creative in
maintaining its current services to their students. The board of education’s offer of early
retirement incentives to their teachers has saved the county school board approximately $1.5
million dollars.
Unless enrollment increases, the school district must reduce costs to offset the decline
of enrollment for the 2021 – 2022 school year. The Carter County School District has the
capacity to reduce costs for next year’s school budget, but the school board and director of
schools must choose from a number of options to accomplish this goal.
A previous section of this investigative study (page 17) gave the reader ten options to
consider as cost saving measures, but several of these options are not viable for the school
district. The Carter County Commission has given the impression that they would like for next
year’s school budget decisions to substantiate the board’s efforts in reducing costs and
reallocating a portion of those savings to improve the teaching and learning environment of the
school district. To accomplish this goal, the school board and director of schools must consider
26
the following strategies to reduce costs:
1) Perform a curriculum audit and eliminate those curriculum

programs that teachers do not use and programs that do not
achieve the learning goals required by Tennessee’s curriculum. A
consultant is not required. The school’s staff and administration
have the capacity to do the audit.

2) A reduction in force (RIF) will yield immediate savings for the
school district. Carter County’s schools have an excellent
pupil/teacher ratio. Most school districts will lose teachers
through retirement and better job offers from other districts.

3) Carter County has 77 teachers that the Basic Education Program
does not fund. If the district has 7 teachers that decide not to
return for the 2021 – 2022 school year, the director does not
replace those teachers. The pupil/teacher ratio may increase, but
the district will not exceed Tennessee’s mandated pupil/teacher
ratio for K – 12. The school district has saved $257,180 in salary
excluding benefits ( salary for a Carter County teacher with a BS or
BA degree with 0 experience earns $36,740 X 7 = $257,180). No
teacher has been displaced.

4) Restructuring or blending of schools will create a cost reduction
for the school district. The implementation of this strategy yields
a major cost reduction but requires the school board and director
of schools to render difficult decisions.

The following example of restructuring is submitted based on the study’s findings for
the board and director’s consideration. The board of education renders all decisions that affect
school operations and have the right to approve or deny the restructuring or blending of
schools.
When utilizing the option of restructuring or blending of schools, one begins by
reviewing the size of the school, the BEP funding for staff positions, the cost of operation
27
(utilities), and the future expenditures to maintain the facility for students and staff. It is also
essential that adequate consideration is given to the achievement and growth levels of the
school, course offerings, and school culture.
Several schools in the Carter County School District exhibit an enrollment of less than
300 students. The largest enrollment (544) is shown at Happy Valley High School, and Hampton
Elementary (K-8) exhibits an enrollment of 522 students. These schools are the only schools in
the district that exhibit an enrollment of over 500 students.
Little Milligan Elementary has an enrollment of 118 students in K – 8. The BEP funds five
regular education instructional positions. Nine regular education positions have been hired and
teach at the school. Since the state only funds five teachers, the school district is paying the
entire salaries with benefits of four teachers from local funds. Without calculating the amount
of revenue that is paid for teacher benefits, local revenue is paying a conservative estimate
$146,960 (salary of a teacher with a BS/BA degree with 0 experience -- $36,740 X 4 =
$146,960).
Little Milligan has a principal, physical education teacher, secretary/bookkeeper,
custodian, cafeteria manager, and nurse on staff that are not fully funded by the BEP. The BEP
yield .5 per school with an enrollment less than 225 students. The cost saving for restructuring
or the blending of staff and students with another school is based on this mathematical criteria:
• PE Teacher – Salary excluding benefits is $37,740 per year.
• Bookkeeper – Salary excluding benefits is $16,214 per year.
• Custodian (8 hrs. per day) – Salary excluding benefits is $15,678 per year.
28
• Nurse (7 hrs. per day) – Salary excluding benefits is $17,860 per year.
• Cafeteria Manager (8 hrs. per day) – Salary excluding benefits is $20,061 per
year.

• Principal – Salary excluding benefits is $57,194 per year.

Restructuring saves the school district $164,747.
A review of the annual cost for electricity, propane gas, and water displays a savings of
$46,601 (electricity - $23,094 for main building, electricity - $8,888 for modular classrooms,
propane gas - $11,787, water - $2,832) per year.
The receiving school for Little Milligan would be Hampton Elementary School. The total
cost reduction for the Carter County Board of Education would be $358,308.
During the interview process of the study, members of the county commission and
county budget committee gave the indication that the county commission would accept the
deed for the building and property from the Carter County Board of Education. The county
would maintain the property for the community’s utilization. This action would preserve the
identity of the community and allow the community to utilize the facility.
Another immediate reduction in cost is realized by restructuring Keenburg
Elementary School. Keenburg Elementary has an enrollment of 263 students in K – 8. The BEP
funds 10.63 regular education instructional positions. 6.37 regular education positions have
been hired and teach at the school. Since the state only funds 10.63 teachers, the school
district is paying the entire salaries with benefits of 6.37 teachers from local funds. Without
calculating the amount of revenue that is paid for teacher benefits, local revenue is paying a

29
conservative estimate of $234,034 (salary of a teacher with a BS/BA degree with 0 experience --
$36,740 X 6.37 = $234,033.80).
Keenburg Elementary has an assistant principal, technology/computer teacher, librarian,
school counselor, art teacher, PE teacher, secretary, bookkeeper, custodian, cafeteria manager,
and nurse on staff that are not fully funded by the BEP.
The cost saving for restructuring or the blending of staff and students with another
school is based on this mathematical criteria:
• Computer Teacher – Salary excluding benefits is $36,740 per year.
• Art Teacher (part-time) – Salary excluding benefits is $18,370 per year.
• School Counselor – Salary excluding benefits is $36,740 per year.
• Librarian – Salary excluding benefits is $36,740 per year.
• Secretary – Salary excluding benefits is $14,366 per year.
year.

• Assistant Principal – Salary excluding benefits is $36,740 per year.
30
The salaries for licensed personnel are based on a teacher with a BS/BA degree and 0
experience ($36,740). The estimated savings is conservative. Restructuring saves the school
district $350,718.
The Keenburg Elementary School’s annual cost for electricity, propane gas, and water is
$83,890 (electricity - $40,432 for main building, electricity - $19,531 for modular classrooms,
propane gas - $16,900, water – $7,030) per year.
The receiving schools for Keenburg would be Central and Hunter Elementary Schools.
Both schools have room for the students and display the same school culture.
The building and property may be deeded to the county or sold by the board of
education. Empty buildings and property need to be disposed by the board to prohibit school
board liability and to secure cost reduction.
The total cost reduction for the Carter County Board of Education would be $668,642.
Two elementary schools in Carter County have an enrollment of less than 300 students.
Unaka Elementary has 216 students enrolled in K – 8, and Valley Forge Elementary has an
enrollment of 180 students in a K – 5 school configuration.
Unaka Elementary has an enrollment of 216 students in K – 8. The BEP funds 9.49
regular education instructional positions. 12 regular education positions have been hired and
teach at the school. Since the state only funds 9.49 teachers, the school district is paying the
entire salaries with benefits of 2.51 teachers from local funds. Without calculating the amount
of revenue that is paid for teacher benefits, local revenue is paying a conservative estimate of
31
$81,195 (salary of a teacher with a BS/BA degree with 0 experience -- $36,740 X 2.21
$81,195.40).
Unaka Elementary has the following specialty teachers and support personnel:
• Music Teacher (part-time) – Salary excluding benefits is $18,370 per year.
• Librarian/Media Specialist – Salary excluding benefits is $36,740 per year.
year.

experience ($36,740). Part-time licensed personnel salaries are based on a portion of the
employee’s annual pay. Support personnel salaries are based on hourly rate. Restructuring
saves the school district $259,098 for specialty and support staff.
Unaka Elementary School’s annual cost for electricity, propane gas, and water is
$53,931 (electricity - $31,585, propane gas - $21,800, water – $546) per year.
32
Restructuring Unaka Elementary would provide a cost reduction for the Carter County
Board of Education of $394,224.
The receiving school for Unaka Elementary would be Hunter Elementary Schools. Unaka
Elementary and Hunter Elementary display the same school culture. The construction program
should be finished at Hunter Elementary, and the new additions should provide adequate space
and foster a quality learning environment for the students of Unaka Elementary.
The building and property may be deeded to the county or sold by the board of
education. Empty buildings and property need to be disposed by the board to prohibit school
board liability and to secure cost reduction.
Valley Forge Elementary has a PreK – 5 school configuration. The school has an
enrollment of 180 K – 8 students. The school is located by a river and has limited room for
expansion. Modular classrooms serves as the majority of classroom space.
The restructuring of Valley Forge Elementary provides a cost reduction that may offset
the construction costs for the receiving school Hampton Elementary (receiving school). For
example, the BEP funds 8.41 (K – 5) regular education instructional positions. 13 (K –5) regular
education positions have been hired and teach at the school. Since the state only funds 8.41
teachers, the school district is paying the entire salaries with benefits for 4.64 teachers from
local funds. Without calculating the amount of revenue that is paid for teacher benefits, local
revenue is paying a conservative estimate of $170,474 (salary of a teacher with a BS/BA degree
with 0 experience -- $36,740 X 4.64 = $170,473.60).
33
Valley Forge Elementary has a part-time school counselor, a part-time physical
education teacher, RTI/librarian/computer teacher, secretary, bookkeeper, custodian, cafeteria
manager, and a nurse on staff that are not fully funded by the BEP.
The cost saving for restructuring or the blending of staff and students with another
school is based on this mathematical criteria:
• RTI/Librarian/Computer Teacher – Salary excluding benefits is $36,740 per year.
• PE Teacher (part-time) – Salary excluding benefits is $18,370 per year.
• School Counselor (part-time) – Salary excluding benefits is $18,370 per year.
year.

• Principal – Salary excluding benefits is $56,520 per year
The salaries for licensed personnel are based on a teacher with a BS/BA degree
and 0 experience ($36,740). Part-time licensed personnel salaries are based on a portion of the
employee’s annual pay. Support personnel salaries are based on hourly rate. Restructuring
saves the school district $196,319 for specialty and support staff.
Valley Forge Elementary School’s annual cost for electricity, propane gas, and
water is $81,998 (electricity - $56,700, propane gas - $10,950, water – $9,210 + $5,138 for
modular classrooms) per year.
34
The total cost reduction for the Carter County Board of Education would be
$448,791.
The Carter County School District has four high schools. All the high schools are small
with student enrollments from 263 – 554. The high schools have CTE programs that are
outstanding and allow students to obtain an industrial certification. The high school grade
configuration for the majority of the school district’s high schools are 9 – 12. The only
exception is Cloudland High whose grade configuration is 7 – 12.
The elimination of the 7th and 8th grades from Cloudland High School changes the grade
configuration to 9 – 12 and transforms the high school to be the same as the other Carter
County high schools. The enrollment changes with the 9 – 12 configuration from 263 students
to 194 students and 13 teachers. The restructuring of the Cloudland High School and changing
Cloudland Elementary from a K – 6 to a K – 8 configuration would serve as a cost reduction for
the Carter County School Board.
School Enrollment BEP Positions # of Teachers
Cloudland HS (9 – 12) 194 8.5 13
The state funds 8.5 regular education instructional positions. The Carter County
Board of Education is paying the salary of 4.5 teachers with local revenue. Since the state only
funds 8.5 teachers, the school district is paying the entire salaries with benefits of 4.5 teachers
from local funds. Without calculating the amount of revenue that is paid for teacher benefits,
35
local revenue is paying a conservative estimate of $165,330 (salary of a teacher with a BS/BA
degree with 0 experience -- $36,740 X 4 = $146,960).
The cost saving for restructuring or the blending of staff and students with
another school is based on this mathematical criteria:
year.

• Assistant Principal – Salary excluding benefits is $36,740 per year.

experience ($36,740). The estimated savings is conservative, and the restructuring of the
Cloudland High School saves the school district $196,507.
Since the 7th and 8th grade will occupy the wing of the building that has been vacated by
the high school, the school district will not have a cost reduction for utilities.
The receiving schools for Cloudland High School would be the Hampton High School.
Hampton High School’s enrollment would increase to 630 students. Both schools have room
for the students and display the same school culture.
The total cost reduction for the Carter County Board of Education would be
$361,837.
36
Due to the immediacy of demonstrating cost reductions to the Carter County
Commission, the board of education and the director of schools may consider the following
timeline:
• 2021 – 2022 school year: Restructure Little Milligan Elementary and

Keenburg Elementary

• 2021 – 2022 school year: Begin construction on Hunter Elementary for
the restructuring of Unaka Elementary.

• 2022 – 2023 school year: Restructure Unaka Elementary with Hunter
Elementary (receiving school)

• 2022 – 2023 school year: Restructure Cloudland High School.

• 2024 – 2025 school year: Restructure or Remodel Valley Forge
Elementary.

The board of education and director of schools consideration of this timeline or a
similar timeline should produce immediate and long term cost reduction and improve the
efficiency of the school district’s operation.
The implementation of these cost reduction options: curriculum audit, a reduction in
force by not replacing teachers that leave the school district, and the restructuring or blending
of schools will give immediate and long term savings that will allow the school board to
reallocate its resources to improve student achievement and school district operation.
• First Year: $668,642 + 358,300 = $1,026,942 Restructuring of Little

Milligan Elementary and Keenburg Elementary

• First Year: $257,180 Not replacing seven teachers that leave the district that
take other jobs or move

37

• First Year: Begin construction on Hunter Elementary for the restructuring of
Unaka Elementary.

• Second Year: $394,224 Restructure Unaka Elementary with Hunter
Elementary (receiving school).

• Second Year: $196,507 Change the grade configuration and restructure
Cloudland High School with Hampton High School.

• Third Year: $448,791 Restructure Valley Forge Elementary with Hampton
Elementary (receiving school).

Depending on the decisions that are made by the school board and director of schools,
the Carter County School Board should be able to reduce costs and reallocate revenue of
$2,323,644 during the first three years.
38

References
Documents from the Tennessee State Department of Education
Carter County Board of Education
Bolman, Lee G. & Deal Terrence E. (1987). Modern Approaches to Understanding and
Managing Organizations. San Francisco: Jossey-Bass Inc.

MGT of America, Inc. (2009). School Closure Survival Guide. Sacramento: California

39

A Financial Study of The Carter County School District

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Financial Study of the Carter County School District

Education and director of schools that should:

• Assist the school board and director of schools in rendering an informed

prudent and efficient process.

(TEAMS) or the TEAMS consultant.

County School District.

Carter County Schools

Cloudland Elementary (K-6) Enrollment - 233 BEP Positions: 10.52 # of Teachers: 14

Hampton Elementary (K-8) Enrollment - 522 BEP Positions: 22.6 # of Teachers: 24

Hunter Elementary (K-8) Enrollment - 401 BEP Positions: 17.92 # of Teachers: 21

Keenburg Elementary (K-8) Enrollment - 263 BEP Positions: 10.63 # of Teachers: 17

Little Milligan Elem. (K-8) Enrollment - 118 BEP Positions: 5 # of Teachers: 9

Unaka Elementary (K-8) Enrollment - 216 BEP Positions: 9.49 # of Teachers: 12

Cloudland HS (7-12) Enrollment - 263 BEP Positions: 11.27 # of Teachers: 26

Hampton HS (9-12) Enrollment - 436 BEP Positions: 19.11 # of Teachers: 28

Happy Valley HS (9-12) Enrollment - 554 BEP Positions: 24.22 # of Teachers: 29

Unaka HS (9-12) Enrollment - 341 BEP Positions: 14.6 # of Teachers: 24

Siam Academy (Alternative) Enrollment - 24 BEP Positions: 1 # of Teachers: 3

Department of Education Basic Education Program Allocation, 2020 – 2021).

Cost Analysis of Schools and Other Buildings

Building Electricity Gas Water Total Cost

Central $40,446 $13,853 $2,605 $56,904

Cloudland Elem. $80,972 $2,169 $83,141

Cloudland HS $50,091 $23,521 $4,244 $77,856

Cloudland HS Mod. $3,889 $3,889

Cloudland HS Voc. $23,198 $9,315 $235 $32,748

Cloudland HS Athl. $8,533 $8,533

Hampton Elem. $133,399 $23,930 $3,999 $161,328

Hampton Elem. Mod. $5,469 $5,469

Hampton HS $45,178 $25,448 $3,699 $74,325

Hampton HS Mod. $4,218 $4,218

Hampton HS Voc. $52,804 $582 $53,386

Hampton Ag. & GH. $10,443 $4,394 $14,837

Hampton HS D/Con. $11,430 $11,430

Happy Valley Elem. $53,522 $14,599 $6,731 $74,852

Happy Valley E Mod. $15,773 $15,773

Happy Valley Middle $73,150 $2,293 $75,443

Happy Valley HS $60,688 $17,668 $17,433 $95,789

HV HS Little House $2,689 $2,689

Happy Valley Voc. $27,046 $1,621 $1,324 $29,991

HVH Football Field $9,485 $1,755 $11,240

HVH Baseball $2,689 $2,689

HVH Softball Field $3,606 $3,606

Hunter Elem. $52,634 $17,279 $1,553 $71,466

Hunter Mod. $15,534 $15,534

Keenburg Elem. $40,432 $16,900 $7,030 $64,362

Keenburg Mod. $19,531 $19,531

Little Milligan $23,094 $11,787 $2,832 $37,713

Little Milligan Mod. $8,888 $8,888

Siam Academy $13,753 $12,235 $677 $26,665

Unaka Elem. $31,583 $21,800 $546 $53,929

Unaka Elem. Mod. $16,242 $667 $16,909

Unaka Elem. Ballfield $300 $300

Unaka HS $59,533 $19,463 $1,970 $80,966

Unaka HS Shop $1,803 $302 $2,105

Unaka Voc. $30,043 $30,043

Unaka Band Room $3,804 $3,804

Unaka CDC Mod. $2,039 $2,039

Unaka Athl. Field $3,074 $3,074

Unaka HS Ballfield $300 $300

Valley Forge Riverview $5,138 $5,138

in the cost of the equipment and labor installation.