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(WBIR) Tuesday morning, Mayor Tim Burchett signed the Knox County budget for the upcoming fiscal year.

The roughly $727 million budget, with $424.9 million dedicated to the school system, will begin July 1.

Last week, the Knox County Commission approved the mayor's spending plan in a 9-2 vote. Burchett initially proposed an almost $730 million budget with $427.8 million going to the school system. When officials learned that schools will get $2.9 million less than expected from the state, Burchett revised his budget, dropping school funding to $424.9 million.

BACK STORY: Commission approves Burchett's budget, shoots down tax increase

Superintendent Dr. Jim McIntyre says he's disappointed commission voted not to fund the shortfall and teacher raises.

Monday night, the Knox County Board of Education talked about restructuring its budget to include several new reductions since Knox County's appropriation was $7.5 million less than expected. The reductions include eliminating teacher raises, a few reserve positions (currently unfilled), a central office position, and limiting high school clerical positions.

MORE: Board of Education discusses budget changes, charter school

McIntyre called the district's latest budget of nearly $425 million a modest increase over the current year, reflecting a $5 million or one percent increase in resources.

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