Opinions differ on school funding

Memphis can't opt out, state's attorney general says

March 11, 2005

By Richard Locker for The Commercial Appeal

NASHVILLE -- Memphis and state officials issued dueling legal opinions Thursday on whether the City of Memphis must maintain its funding for the city school system, signaling an all-but-certain court battle if Mayor Willie Herenton follows through on his proposal to eliminate $89 million for schools.

In Nashville, Tennessee Atty. Gen. Paul Summers issued an advisory opinion, requested in January by state Sen. Mark Norris, concluding the city "will be in violation of the law" if it cuts or eliminates funding.

Summers also said that if the city did cut school funds, Shelby County "would have to accept responsibility for educating students in the city schools," most likely while a court fight played out.

City Attorney Sara Hall and City Council Attorney Allan J. Wade later Thursday in Memphis issued a joint opinion to the mayor reaffirming their position that the city has no obligation, either under its charter or state law, to provide funding.

"We've thoroughly researched the issue and we believe the city has no legal requirement to fund the schools, and the funding requirement for the Memphis City Schools is, by state law, with Shelby County government," Hall said.

The city school system, which serves 118,000 students, operates this year on a $773.6 million budget funded from various sources. The contribution from city property taxes is 111/2 percent of the total budget.

Herenton told the City Council's budget committee Tuesday the city can either retain the schools' money or raise the city property tax rate by 54 cents (currently $3.23 per $100 of assessed value) to restore the jobs lost by 2,100 full and part-time city employees and restore cuts in city services. He will formally deliver his 2005-06 budget proposal to the council next month.

A decision by the city to either reduce or eliminate school funding would almost certainly trigger a court challenge, agreed state, city and school officials.

Norris, R-Collierville, said the attorney general's opinion confirmed his own belief that state law "prohibits the city from just revoking the city school system's funding."

Generally, the AG's opinion cites provisions in the state's Basic Education Program that requires local school systems to maintain at least their current level of funding every year and not to use state education money to either supplant or reduce the local contribution.

Percy Harvey, general counsel for Memphis City Schools, called Summers's opinion "very good news for the city schools."

Contact Nashville Bureau chief Richard Locker at (615) 255-4923.