City Council Presents Its Case In School Funding Controversy

In response to our post earlier this week about the dispute between Memphis City Council and Memphis City Schools, we heard from several Council members who took issue with our opinion.  In the interest of having a meaningful conversation and understanding its position about this contentious issue, here are the facts summarized by the City Council:

City of Memphis Education Funding Fact Shee

The City of Memphis has paid MCS over $171.7 million in operating funds since July 2008

The City of Memphis has set aside over $87.7 million in its FY2012 operating plan for MCS

MCS does not have authority to levy taxes, therefore the City of Memphis dedicates part of its property tax ($0.18 of the $3.19 city tax rate) for the local portion of school funding as counties in TN are required to do by law.  The City has voluntarily given in excess of $1.0 billion in additional funds to MCS over the years

In the past three years the City has funded MCS in the same manner and at the same time; at no time in any of those years did MCS have any problem starting school on time.

According to MCS’ recent budget the City’s proposed contribution to MCS’ 2012 budget is 8.65%–This is less than a dime on a dollar.  Think about it.  Even if the City completely refused to fund them at all, a dime out of a dollar should not be a cause to shut down schools. Prudent management should be able to open schools, even on a reduced basis with 90% of its budgeted revenues

The City of Memphis has also borrowed hundreds of millions of dollars on MCS’ behalf for capital projects such as building and renovating schools.  MCS has not fulfilled its obligation to pay the debt service on these capital dollars – though the city still must make debt service payments on this debt- and the city has filed suit to collect $160mil owed for MCS capital projects

The Memphis City Council and MCS have been negotiating the $57mil judgment MCS won against the city for the 2008-2009 school year and the City’s $160mil counter claim which is currently in the courts and will be ruled upon in the near future unless a settlement is reached

As the City of Memphis collects property taxes from its citizens, MCS’ receives its portion of property taxes as well as local sales tax via monthly payments from the Shelby County Trustees office.  The City of Memphis does not “advance” MCS money from taxes the city has not yet collected

The City Council has approved as part of the City of Memphis budget and paid funds to MCS for the past 2 school years (2009-2010 and 2010-2011) The Council will consider MCS’ 2011-2012 school year budget in committee on July 21, 2011 at 4 pm.