The 2007-2008 budget for Phenix City schools includes a pay increase for all employees and $18.8 million for construction.
State funding for the system increased by approximately $4 million to fund employee pay increases of 7 percent or $1,000, whichever is greater.
The $4 million increase will also fund increases in the amount the system will pay towards employee health insurance costs and teacher retirement.
The $18.8 million capital projects budget will be used towards current projects as well as the construction of a proposed freshman academy at Central High School.
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The budget for the school system totals $63 million, an increase of 38 percent over last year's budget.
The school board will host another budget hearing on Thursday at 5:30 p.m. at the Educational Services Center on Ninth Ave. before voting on the budget during their board meeting at 6 p.m.