School Funding Vote: City In Midst of Lawsuit Over Cuts From Budget

December 15, 2009

The Memphis City Council is set to vote on school funding today, revisiting a thorny issue that inspired a lawsuit by Memphis City Schools and an appeal by the city.

In mid-October, a three-judge panel of the Tennessee Court of Appeals heard the city’s appeal of a February ruling by Chancellor Kenny Armstrong, who ordered the city to restore $57 .4 million it cut last year from the city schools budget.

City Atty. Herman Morris, as spokesman for Mayor A C Wharton, said Monday that "Since the litigation is, in large part, driving what we do, the mayor has asked me to brief him on all options the parties might pursue in resolving this question in a manner that protects and advances the educational welfare of our students without jeopardizing the financial health of the City and its ability to provide other essential services."

Morris said Wharton has met with Supt. Kriner Cash, MCS board president Martavius Jones, and council chairman Harold Collins to make sure "all parties will have a full understanding of the relative positions of the others and that discussions can proceed civilly and constructively."

The council already has approved $78.3 million in funding for the school district for the current year, with $43 million committed from property taxes, reserves, traffic violations and payments in lieu of taxes.

That leaves a $34.6 million hole the council would have to fill, if the court order to fund the district is upheld on appeal.

Dorsey Hopson, school board attorney, says the council, in its "collective wisdom," can decide to pay "through a tax increase, through the fund balance or a bake sale."

Hopson said the city scoffed at the board’s suggestion several months ago of settling the disagreement by letting it pay the balance over time.

"It was almost like the city was insulted that we raised the issue. Our board has been very, very clear that they don’t want an additional burden on taxpayers. We’re all one."