The Cherokee County School Board unanimously approved a $61.8 million budget Monday that includes no tax increase and limited teacher attrition.

Revenues increased 5.3 percent over the previous school year. There was little left to spend after the district dealt with a staterequired pay raise and increased local funding for teacher salaries to be more competitive with area school districts.

About 90 percent of the school budget will go towards salaries and benefits. The budget includes a 3.85 percent pay raise for teachers and administrators.

The school budget takes effect July 1. New expenses include $500,000 for substitute teacher pay, $20,000 in coach incentive pay for winning state championships, and $325,000 for operational expenses in new school buildings. The district included $45,000 for school resource officers and school security.

School trustees approved a $12 million tax anticipation note that will be used to operate the schools this fall. The district will borrow the money until tax revenues are received in January.

"The tax anticipation note has become something we have to do," finance director Ben Childs said. "The amount goes up every year because of state funding cuts and the fact the state revenue comes in slower every year. This will be paid back in April of 2009."

The district plans to add $1 million back to its budget reserve fund through changes in how some staff members are paid. The district expects to end the current budget year with $4.9 million in reserve.

More than 30 positions filled by retired employees this past school year will be moved to federal and state funding sources to help balance this year's budget, said Page McCraw, director of high school education programs. Of these positions, McCraw said 20 employees will be able to return to the school district.

The district still has nine positions it has been unable to fill because of enrollment or lack of funding. In an example of attrition, Gaffney Middle assistant principal Thomas Brooks will not be replaced after he left to accept the same position at Dorman.

The district does not plan to add staff for the opening of new buildings such as the Gaffney High and Blacksburg High ninth grade additions, Limestone Learning Center, and Goucher Elementary addition. Superintendent Dr. Bill James said current teachers in schools will simply move with their students into the new school buildings.

"We know this is a tight budget year. We have made an effort to make sure people don't lose their job," James said. "We have shifted some positions to other funding sources outside the budget. These were staffed this year by retired employees that work with the district under a letter of agreement that is up each year."