Council stalls on Memphis City Schools funding; will wait for court decision

January 13, 2010

Memphis City Schools will have to wait to get millions of dollars that the City Council said it would give the district for the current year.

The council voted 8-3 Tuesday to delay paying the $50 million that it promised the school system until there is a resolut ion to the ongoing litigation over school funding.

 "Our best position would be to wait, to let the courts resolve this issue," said councilman Myron Lowery, who sponsored the resolution calling for the delay. "To develop a solution before the courts rule on it erodes our position."

Last year, the council approved $78.3 million in funding for the school district for the current fiscal year, with $28 million already committed from various sources. That left a $50 million hole the city had to fill for schools.

School officials said they were "shocked and dismayed" by the council’s vote.

"I can only say it is one of the most shockingly irresponsible actions I have seen a public body take," said school board attorney Dorsey Hopson. "They approved a budget, committed to give us $78 million, then delayed the decision for over half a year and now have decided to do nothing."

Hopson said the council’s decision will force the superintendent and the school board to cut $50 million from the budget more than halfway into the school year.

"The school board has a number of options, and I can assure you they will not take this laying down," Hopson said.

"But it’s just sad that we have to go through all this when you’ve got a court saying you will have to pay," he added.

The council reduced its contribution to the school district last year from 83cents of the city tax rate to 19 cents, delivering a property tax reduction to citizens while increasing city spending by more than $40million and giving a 5percent raise to employees.

The school district sued and a judge ordered the city to pay the district. The state Court of Appeals heard the case in October, and that ruling likely will be appealed to the state Supreme Court.

Council attorney Allan Wade declined to speculate about how long the entire process could take.

Hopson blasted Lowery’s motion as "disingenuous."

"He’s been around long enough to know the Supreme Court may not hear this thing for a few years," Hopson said.

If the school district wins the case, the city could be responsible for the funding it cut last year, the funding it promised this year and the funding for the next fiscal year, which begins July 1. That amount could easily exceed $100 million.

The council was set to consider another proposal to fund the $50 million gap in school funding by using $30million in city reserves, making $10 million in cuts to the city budget and forgiving $10 million the city says MCS owes for bonds it issued on the school district’s behalf.

But the school district rejected that proposal, and the council voted to approve Lowery’s request for a delay.

Council members Lowery, Bill Boyd, Kemp Conrad, Edmund Ford Jr., Janis Fullilove, Wanda Halbert, Reid Hedgepeth and Barbara Swearengen Ware voted for the delay; councilmen Jim Strickland, Shea Flinn and Harold Collins voted against the delay. Councilmen Joe Brown and Bill Morrison were not present.

Strickland, who wrote the "30-10-10" plan that was scheduled for a vote Tuesday, said that instead of planning for a massive fiscal hit if the district wins in court and living up to its promise to fund the school system this year, the council "rolled the dice" with taxpayer money.

"I think a majority of the council gambled with our tax dollars," said Strickland.