Memphis City Schools Beat Blog

The Memphis City Council is planning to give final approval Tuesday to its property tax cut that will take a huge slice of the pie away from Memphis City Schools, but board members and district executives aren't going down without a fight.

School officials are holding a press conference this afternoon to decry the loss of approximately $66 million of the $93.5 million they were anticipating next year and discuss an emergency budget plan that includes a 10 percent across the board cut in department budgets.

The significant reduction in school funding allowed the council to absorb an overall increase in city government spending of more than $30 million while decreasing the property tax rate by 18 cents.

Board members and district staffers say the cuts will affect the classroom and require the reduction and elimination of several programs, including adult education and driver's education. Students would have fewer librarians and counselors to help them this August as well under the new plan.

Board members have told their general counsel to sue the city if it doesn't change its mind. And the district may also file suit against the state to prevent it from withholding $423 million in state funding as a result of the council's action.

Taxpayers could find their money going to government entities battling each other in court all summer and well into the fall.

Is the property tax break is worth the current confusion and potential lawsuits?

Should the city of Memphis keep funding education or stand its ground?

Or is there another solution policymakers haven't thought of yet?

Let us know what you think.

Resolution over the financial state of Memphis City Schools is anything but clear.

The new fiscal year starts in two weeks, and both board members and administrative staff have no idea how much money the school district will have next year--or even if it will have enough to keep operating after doors open for students Aug. 11.

First, the City Council voted to lower the tax rate for education, which means the district will get $20.2 million of the $93.5 million it was expecting next year. The Tennessee Department of Education believes the council's action is illegal, and will start witholding the district's $423 million in state funding on Oct. 1 if MCS can't produce a balanced budget that includes a maintained level of funding from both the council and the Shelby County Commission.

The Memphis Board of Education met last night in a rare Friday session to address the issue and voted to sue the council if it doesn't reconsider its stance. The board said it is also willing to sue the state to avoid losing such funding.

Meanwhile, top district officials are at work today preparing a media campaign for the upcoming week that will detail some how losing this money could impact not only the district also the city.

For example, if the state cuts funding, more than 16,000 Memphians will lose their health and life insurance. That's because MCS, like most large employers, has self-funded insurance.

Council members are also sharing their thoughts. Veteran councilman Myron Lowery sent this e-mail late last night:

The “State to Schools: Recover or Suffer” article in today’s Commercial Appeal raises many questions.

I believe its time for the Memphis City School Board to host a meeting with the Tennessee Department of Education, the Shelby County Commission, Memphis City Council, the Governor, and our City and County Mayors.

The Memphis School Board has been caught in the middle of discussions with its major funding sources and its time that we all meet together to resolve these extremely important issues.