Memphis Schools Set to Get Millions From City After Court’s Decision (TN)

August 26, 2010

Memphis officials were left to ponder Wednesday how to pay a bill that could reach $57 million after the Tennessee Supreme Court declined to hear the city’s appeal over school funding.

With its decision, the Supreme Court essentially agreed with rulings by two lower courts that said the city could not reduce its funding to Memphis City Schools.

In 2008, the City Council sliced its school contribution by $57 million as part of an effort to shift funding to the county.

"We have a cloud of real uncertainty that’s been removed from us. We’ve languished for two years on this," school board member Martavius Jones said.

That cloud of uncertainty, however, has now shifted to the co uncil and Mayor A C Wharton’s administration, which will have to come up with a way to pay the bill.

The amount the city will owe is somewhat uncertain, as is the time frame in which it must be paid.

Although the council originally withheld $57 million, the amount due could be lower based on declining enrollment and other factors.

The ruling was an "I told you so" moment for council member Jim Strickland, who recently pleaded with the council and Wharton to cut spending, then bank those funds in case of an unfavorable court ruling.

"I think most people saw this coming because the Supreme Court takes very few cases," Strickland said. "It would have been so much easier to deal with this prior to approving the budget."

Strickland predicted that taxpayers could be hit with a tax increase of as much as 15 percent.

"I am worried that taxpayers are going to see a tax increase," he said. "People need to hold on to their wallets because City Hall is coming to take your taxes."

Both Jones and fellow school board member Patrice Robinson said they would favor letting the city pay the bill in installments.

"I’m going to take the high road. I believe we should give them the opportunity to do what they need to do so it won’t be too painful to the citizens of Memphis," Robinson said.

School board member Jeff Warren, however, was less magnanimous, saying the city "stole" the money.

"I think the City Council shou ld either cut the money out of what they took it for, or raise taxes for more services," Warren said. "I really think that we might as well consider garnishing their reserve."

Council chairman Harold Collins, still calling the funding system that requires Memphians to pay twice for city schools "unfair and unconstitutional," said the city would maintain its commitment to education.

"The city of Memphis is going to live up to its commitment to the children of this city and make sure they have the resources they need to succeed," said Collins, whose proposal to put the funding question on the Nov. 2 ballot failed Tuesday.

Wharton could not be reached for comment late Wednesday.

In December, Wharton called for a tax increase to fund city schools but met resistance from the council to that proposal, eventually settling on budget cuts.

Over the last two years some council members have talked about issuing a separate tax bill to city residents to collect the money.

It is unclear when the city, which still has a multimillion-dollar lawsuit against the district over bond issuances pending in court, would have to pay the school district.

While city officials were left in disarray by the ruling, Robinson and other school board members were celebrating.

"I ate a hamburger," she said. "I haven’t eaten one in three months."