School Funding Settlement in the Works (TN)

December 3, 2010

Let’s make a deal! The city of Memphis and Memphis City Schools are reportedly working toget her on a settlement for school funding.

The negotiations are over the $55 million that a court ordered the city to pay MCS in back funding last month. The funds were withheld by the city in 2008. Now, both sides are working to trim that number down, so everyone is happy this holiday season.

On Memphis City School Superintendent Kriner Cash and Memphis Mayor A.C. Wharton’s wish lists this year is a settlement on back funding. According to an MCS spokesperson, the two city leaders are working together to lower the amount the city owes the school district, after proposing a $55 million settlement just a few weeks ago.

"I’d like to see it all resolved, and I think that’s why we’re working, trying to get it done now," said City Councilman Harold Collins.

Collins said it’s in everyone’s best interest for a negotiation between the two sides to be settled quickly.

"Number one, the city’s creditors and bonding agents will have some idea of what we’re going to be facing in the future. Two, it will give the stability to Memphis City Schools that they need on whether the city’s going to continue to fund them and get the funding to them," he said.

Though neither the school nor the city would comment on a target settling price, Collins is hoping for a bargain this holiday season.

"I think in any negotiation, you can negotiate ’til the very end. And we haven’t had anyone say definite that they will accept this, what we will give and I think at the end of the day we’ll see if, hopefully, we can get it down a couple more million but if not I think that the city will do what we need to do to make sure the settlement gets done."
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He said it’s vital for members of the city council and Mayor Wharton to enter the New Year, knowing what cards they’re holding.

"The city can move forward and prepare for the budget going forward next year, knowing that we’re going to have to fund the Memphis City Schools and the Mayor can prepare his budget and council members can have some sort of idea of what we want to get done."

Any deal Mayor Wharton and Dr. Cash come up with does have to be approved by both the city council and the school board.

Should the city have to cough up the full amount, or should the school district give the city a discount? Join in on our online conversation below.