Schools Seek to Control Funding — City, County Boards Want Taxing Authority

By Jane Roberts

Momentum is gathering to give local public education its own taxing authority, which likely would raise taxes but return accountability, school board members say.

“We as a society raise taxes for education, but the way our current system is set up, once taxes are raised, local governing bodies can spend them any way they want,” said Memphis City Schools board member Dr. Jeff Warren.

Warren has written a proposal in which city and county schools would unite in one taxing authority but keep separate boards and missions. Money would be divided between the districts based on enrollment.

If school board members don’t use money and resources wisely, voters “could correct the problem at the ballot box,” Warren said.

The idea of a joint taxing authority has support from David Pickler, chairman of the Shelby County Schools board, and will be discussed as part of a day-long public education summit Friday.

The city and county school districts are preparing separate proposals for the summit, called by Shelby County Commission chairwoman Deidre Malone. Over the next two months, the best local ideas will be rolled into one proposal to be presented to the Tennessee Legislature.

The broad issue of special taxing authority is gaining favor among school leaders who say they are held accountable for increasingly high student achievement but have no power over funding .

“The City Council and the county commission are often frustrated by things in the school budgets. At the same time, the two school districts have no control over funding,” Pickler said. “The funding marriage was created in a place far south of heaven.”

Most states give school districts tax-collecting authority. Tennessee and 10 others do not.

Local leaders intend to seek a private act allowing a special taxing authority in Shelby County, without changing the state code.

“In order for that to occur, City Council and the county commission and local representatives from both school boards have to come together with a compromise,” Pickler said. “The Legislature is only going to act if all are on board.”

But there are also indications a change is needed statewide. In a survey of boards of education conducted in September, the the Tennessee School Boards Association found 57 percent favored amending the state charter to allow for taxing authority by school districts, up from 48 percent in 2005.

Stephen Smith, legal counsel for the TSBA, said tensions are rising as local governments facing shortfalls in the economic downturn try to gain more control.

“And, of course, holding budgets hostage is a way to do that,” he said. “In Tennessee, it’s even more of a problem because we fund school districts in this state at a much lower rate than most states.”

Locally, the issue turned bitter this summer when the County Commission and City Council withheld money from their respective school districts, causing Memphis City Schools, for instance, to sue the city and take $30 million from its reserves to run day-to-day operations.

“In events that have unfolded over the last eight to 12 months, it’s become clearer we need an alternate way,” said city schools Supt. Kriner Cash.

Myron Lowery, City Council chairman, believes the cut spurred an interest in education that is fueling the drive to consider alternatives.

“If the school boards want to be responsible for a taxing authority and the citizens agree, I don’t see any reason why it shouldn’t happen,” he said, adding that a single tax would be fairer to Memphis residents, who now pay twice through city and county taxes.

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Friday’s Education Summit

9 a.m. Arrival and welcome at Fogelman Executive Center at the University of Memphis

10-11:30 a.m. Panel with state Sen. Reginald Tate, D-Memphis; City Council chairman Myron Lowery; Shelby County Commission chairwoman Deidre Malone; Tennessee Education Commissioner Timothy Webb and Comptroller of the Treasury John Morgan

11:30 a.m. Shelby County Mayor AC Wharton and Memphis Mayor Willie Herenton

1 p.m. City schools Supt. Kriner Cash and county schools Supt. Bobby Webb

1:30-2:30 p.m. Funding option discussion with County Commissioner Mike Carpenter, City Councilwoman Janis Fullilove, city school board chairwoman Tomeka Hart, county school board chairman David Pickler and Wharton

2:30 p.m. Wrap-up

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Originally published by Jane Roberts robertsj@commercialappeal.com .

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