The school system’s operating budget receives revenue from county property taxes, local option sales taxes, the Knox County Wheel Tax, the State of Tennessee, and the U.S. Government. A small amount of revenue categorized in the budget as other local revenue also comes from sources such as fees, licenses and insurance reimbursements.
The federal revenue in the operating budget is generally in the form of reimbursements for ROTC instructor salaries. The school system has some operations that are not funded from the general purpose or operating budget such as the Central Cafeteria or Food Service Budget that is required by law to be separate and stands on its own. The revenue is from meal sales and reimbursement from the federal government for students who receive free or reduced price meals. The system also receives some funding in the form of grants from the federal government that are called title funds because their use is very strictly stipulated by federal title or legislation. These funds are operating funds but are not reflected in the general purpose budget because of the specific nature of the funding.