Oak Ridge Today

School board accepts extra $250K to avoid funding loss, school shutdown

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The Oak Ridge Board of Education in two separate meetings on Monday quickly approved a budget amendment that accepts an extra $250,000 from the city, avoiding a potential loss of millions of dollars in state funding and averting an Oct. 1 school shutdown.

The additional funding had been requested by the school board, and it was approved by the Oak Ridge City Council in a 4-1-1 vote during a special meeting last week. After the council approved the extra money, the school board then had to amend its budget in two separate votes, or readings. Education officials are now expected to send the amended school system budget to state officials by Sept. 30. [Read more…]

See the local revenue numbers at center of school funding dispute

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Oak Ridge Schools Maintenance of Effort 2014

The maintenance of effort spreadsheet pictured above is used to determine whether local revenues for Oak Ridge Schools are the same from year to year. This spreadsheet, which includes some budget adjustments, shows a $250,000 shortfall. (Image courtesy Oak Ridge Schools/Karen Gagliano)

Note: This story was updated at 11:35 a.m.

It might be difficult to understand the concerns about Oak Ridge Schools’ funding and the state maintenance of effort test without seeing the local revenue numbers.

So, Oak Ridge Today has posted a copy of a maintenance of effort spreadsheet provided by Karen Gagliano, Oak Ridge Schools business and support services director. This spreadsheet includes budget adjustments that helped reduce the local revenue shortfall from the original $393,000 to a smaller $250,000.

Oak Ridge education officials have asked the city to cover that smaller shortfall to avoid a loss in state funding of $1.87 million per month and avert a school shutdown on Oct. 1. It’s the equivalent of a 2.5-cent property tax rate increase, although it’s too late for a tax increase this year. [Read more…]

Council agrees to special meeting on school shortfall but wants documentation

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Mark Watson

Mark Watson

The Oak Ridge City Council has agreed to meet in a special session next week to try to resolve a $250,000 school funding shortfall that education officials claim could lead to a loss of millions of dollars in state funding and a temporary school shutdown if it’s not resolved by Oct. 1.

But Council members want documentation to accompany the request, Oak Ridge City Manager Mark Watson told Superintendent Bruce Borchers in a Sept. 11 letter. It should include an explanation of why the money is needed, information on decisions made by the Oak Ridge Board of Education to close schools on Oct. 1 if the funding is not obtained, and copies of any formal notice from the Tennessee education commissioner that he has agreed to withhold all of the state funding for Oak Ridge Schools starting in October, the city manager said. [Read more…]

School officials say millions in state funding at risk, could close schools Oct. 1

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Bruce Borchers and Mark Watson

Oak Ridge Schools Superintendent Bruce Borchers, left, and City Manager Mark Watson have had a series of meetings concerning the school system’s failure to pass a state maintenance of effort test, and a possible resolution of a $250,000 shortfall to avoid a potential loss in state funding of up to $1.87 million per month.

Schools want city to cover $250,000 shortfall, could require 2.5-cent tax increase

It’s a high-stakes battle between the city and the schools, with a potential loss of up to $1.87 million per month in state funding—and a possible shutdown of the school system on Oct. 1.

School officials said the Oak Ridge system has failed a state maintenance of effort test that requires local funding to remain at least the same from year to year. After some budget adjustments, there is a $250,000 shortfall, school officials said, and they want the city to cover it. It’s the equivalent of a 2.5-cent property tax rate increase.

“Unfortunately, we’re just in the position to ask the city to help us,” Oak Ridge Superintendent Bruce Borchers said Thursday. “They’re going to have to find that $250,000.” [Read more…]

Guest column: Oak Ridge Schools explain funding issues, maintenance of effort test

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In the spirit of collaboration, the Oak Ridge Schools would like to share pertinent information in regard to the current maintenance of effort (MOE) issue that faces our community. Tennessee law requires that local governments fund local school systems by at least the same amount each year.

In August, Oak Ridge Schools were notified by the State Department of Education, Office of Local Finance, about the failure to pass the MOE test. Failure to correct this problem by Oct. 1 will result in a loss of Basic Education Program (BEP) funding at a rate of $1.87 million per month.

The only possible resolution to satisfy state law is an increase in local funding from the city general fund in the amount of $250,000. This budget amendment would need to be approved in two readings by City Council, and two readings by the Board of Education.

Numerous meetings have occurred between city and schools staff. In addition, the “high school debt/potential failure of MOE” item has been an ongoing discussion for the past two years. To date, no meetings have been scheduled by the City Council to make the necessary budget amendments. [Read more…]

Council considers smaller ORCVB contract

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Mark Watson

Mark Watson

The Oak Ridge City Council has already agreed to cut funding for the city’s main tourism organization by 25 percent under the budget approved in May.

On Monday, Council members will officially consider a one-year contract for the Oak Ridge Convention and Visitors Bureau that would set funding at a maximum of $300,000, down from $410,000 last year. [Read more…]

Roane schools budget $1.5M out of balance

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Information from WYSH Radio

The Roane County school system is facing a $1.5 million budget shortfall and some are calling for a property tax increase to make up the deficit, while others are saying no tax increase is needed and that the schools need to live within their means. Among the options that have been floated include possibly closing Midway High School.

The Roane County Budget Committee has recommended a budget that includes no tax increase, but school leaders have asked for a 14-cent property tax rate increase. [Read more…]

Oak Ridge Chamber will lay off some workers, Economic Partnership to become dormant

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Oak Ridge Chamber of Commerce

The Oak Ridge Chamber of Commerce will lay off some employees, and its support corporation, the Oak Ridge Economic Partnership, will become dormant.

Its funding has been cut, and the Oak Ridge Chamber of Commerce is laying off some employees, an official said Monday.

It will be a smaller organization, and the Chamber’s support corporation, the Oak Ridge Economic Partnership, will become dormant, its work absorbed by the Chamber, said Parker Hardy, president and chief executive officer of the Oak Ridge Chamber of Commerce.

Hardy declined to name the employees who will be laid off or say how many workers might be affected, although he said the information could be shared later. [Read more…]

Federal spending cuts affect special education program in Oak Ridge

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Federal funds to Oak Ridge Schools could be cut five percent starting July 1 under the so-called sequester, and that’s led to staff reductions in the special education program.

Four positions would be cut at Oak Ridge High School and three elementary schools—Glenwood, Linden, and Willow Brook—under a budget approved by school board members on second and final reading Thursday. Two of the reductions would result in job losses. One is a teaching assistant position at Linden, and the other is a teaching assistant job at Oak Ridge High School.

Parents with children in the program have said they are concerned about how the students might struggle if they don’t continue to get the one-on-one help they need. [Read more…]

Letter: Recommends Anderson County establish fire district

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To the Editor:

This month’s Operations Committee meeting included discussion on a proposed resolution that would disqualify any fee- or membership-based fire department from participating in Anderson County’s annual appropriations plan for major asset purchases. Under the current agreement, property taxes fund equipment purchases for both the municipal and volunteer fire departments on a yearly rotational basis.

According to current state statutes, local governments have only two options available to fund or contribute to the county fire departments. Either a county fire district is established, whereby a separate account is created (for funding purposes), which allows for oversight and accountability, or the source of funding is limited to a donation which allows little input from the legislative body. [Read more…]

Anderson County budget: No tax hike, ACSD still seeking funds

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Terry Frank

Terry Frank

Information from WYSH Radio

After a lengthy meeting Thursday evening, the Anderson County Budget Committee recommended approval of a budget proposal that leaves property tax rates at their current levels.

The budget proposal will be the subject of a public hearing on May 30 and will be deliberated in June by the full County Commission. It will be up to commissioners to decide what to do about funding the Anderson County Sheriff Department’s request for hiring 34 new jailers at the soon-to-be-expanded Anderson County Jail and funding requests for new vehicles and equipment. [Read more…]

Guest column: Hope proposes funding increases for fire station, economic development, maintenance

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Chuck Hope

Chuck Hope

Editor’s note: The following proposals by Oak Ridge City Council member Chuck Hope were first considered at the Monday, May 13, City Council meeting but postponed to a special meeting at 5 p.m. Thursday, May 16, in the Municipal Building Courtroom.

I would like to make a motion for an amendment to the ordinance to provide revenue for municipal purposes for the fiscal year beginning July 1, 2013, to increase the funding in the general fund in three critical areas.

The first area is in economic development. I would like to increase funding by $200,000 to strengthen our economic strategies that the city manager has proposed for the upcoming year. I would like to see an additional $75,000 be added to the Oak Ridge Chamber of Commerce contract to fully fund the three-part approach the city manager has developed, with the remaining $125,000 set aside to be used if any additional projects come forward this next calendar year.

The second part of this amendment would be to add $250,000 to the capital maintenance portion of our maintenance and operations (M&O) budget. We have several projects that will need to be updated and repaired this next year. If put off until further in the future, we will be doing these projects under a emergency situation, which always cost us more in repairs. It is essential that we maintain a proper M&O budget so we can get the most out of all of our city assets. [Read more…]