Oak Ridge Today

School board has special meeting Monday to consider one-time spending approved by city

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Oak Ridge Schools School Administration Building

The Oak Ridge Board of Education will have a special meeting on Monday to consider approving $538,048 worth of one-time spending that was approved by the Oak Ridge City Council this past Monday (May 6).

If the Tennessee Department of Education agrees, the extra money, which had been requested by Oak Ridge Schools and the BOE, would not be part of the city’s annual “maintenance of effort” for the schools, a level of funding that can’t be reduced.

Most of the $538,048, or $425,000, would be used in the next fiscal year for principal and interest payments for a four-year technology lease that began in fiscal year 2016, the current fiscal year. That lease funded the purchase of convertible laptops for grade levels 5-8, supporting what is known as a 1:1 initiative and part of Access Oak Ridge.

The other $113,048 would be used for building improvements: [Read more…]

Council approves budget with no tax increase, more money for schools

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Note: This story was last updated at 12:15 a.m.

The Oak Ridge City Council approved a budget on Monday that does not include a property tax rate increase, but it does include more money for schools and it anticipates increases in the trash fee and water and sewer rates.

The budget passed in a 6-1 vote in the first of two readings this month. The second and final reading is Monday, June 13.

Council rejected one motion to lower the $2.52 property tax rate by 4.4 cents and another to take away the additional $538,048 requested by Oak Ridge Schools and put it into the capital fund instead.

The budget does not increase the property tax rate for the ninth year in a row. After five-year reappraisals last year, the rate is now set at $2.52 per $100 of assessed value.

As approved on first reading Monday, the budget includes a 3 percent pay adjustment that will move municipal employees along their pay scales, helping to separate those who have worked for the city for a while from those who have just started. The school budget, which was approved by the Oak Ridge Board of Education in May, also includes 3 percent salary increases. [Read more…]

Guest column: Oak Ridge…a story of excellence

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Bruce Borchers

Bruce Borchers

Let me first state how thankful I am to be part of the Oak Ridge community. I have not worked in, nor do I know of, a community and school district that has a stronger board of education or staff that is focused on students. There are many reasons and indicators of this, but one does not have to look too far to understand that the academic achievement in Oak Ridge has remained steady and/or improved despite a 30 percent increase in the number of students in poverty (over 50 percent of our students now come from a home of poverty) over the last decade. This is a true testament to the dedication of our board, staff, parents, and students.

I have enjoyed my transition both to Oak Ridge and Tennessee as superintendent and look forward to my second year in this role. I have become active in the community and am happy to be a member of Noon Rotary, the Chamber of Commerce Board, and the Methodist Medical Center Board. I look forward to participating in additional activities and offerings that this great community is so fortunate to have. My wife and I have also enjoyed a wonderful personal transition to Oak Ridge. My son will be a freshmen at Oak Ridge High School next year, and my daughter will be a part of the Pride of the Southland Marching Band this fall at the University of Tennessee. I feel blessed to have the opportunity to be the Oak Ridge superintendent as well as being a father of a current Oak Ridge student.

This is too great of a community and district to let negativity infiltrate the very essence of Oak Ridge. The creation of this amazing community and the Oak Ridge Schools is too great of a story for our country (the world really) to move in such a negative direction. Therefore, I pledge to do my part to keep the conversation civil, accurate, and most of all focused on the 4,440 students that walk through our doors every day who depend on the adults to make decisions based on the needs of children and not the comfort level of adults. [Read more…]

Guest column: The Oak Ridge High School debt chronicles

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Trina Baughn

Trina Baughn

The Oak Ridge High School Debt Chronicles—How a $40 Million Project Will Cost Taxpayers Over $126 Million (So Far) 

It appears that the nearly three-year long debate between the Oak Ridge City Council and the Board of Education (BOE) over who owes what on the high school renovation project—the single largest financial expenditure that this city has ever made—is about to be resolved once and for all (or so some hope). To many, this will provide a welcomed relief. For all, it will once again extend and increase a debt obligation far beyond what anyone ever imagined.

Just over one week after the initial public revealing, council will vote on a resolution to end the debate on the high school mortgage issue. The root problem that this resolution will address is not ambiguity in the 2004 referendum or in any “gentlemen’s agreements.” No, the reason that this resolution is necessary, according to the fifth “Whereas,” is “changing community economics and increasing educational needs.”  The need for this resolution, which will violate the original understanding and intent of the 2004 referendum, boils down to an implied need by the Oak Ridge schools for more money.

If passed, this resolution will allow the BOE to retain the portion of the half-cent sales tax revenues collected outside of the City of Oak Ridge and will accomplish the following: [Read more…]

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…]

Council gives schools $250,000, school shutdown avoided

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Bruce Borchers and Mark Watson

During a special meeting Tuesday, Oak Ridge municipal officials agreed to give the city school system an extra $250,000 to avoid a potential loss of millions of dollars in state funding and avert a possible Oct. 1 school shutdown. Pictured above are Oak Ridge Schools Superintendent Bruce Borchers, left, and City Manager Mark Watson, who recommended the extra funding on Tuesday. (File photo)

In a short special meeting Tuesday, the Oak Ridge City Council agreed to give the city’s schools $250,000 to allow the system to avoid a potential loss of millions of dollars in state funding and avert a possible Oct. 1 shutdown.

The one-time transfer will come from higher-than-expected sales tax revenues in Roane County.

The vote was 4-1-1. Oak Ridge Mayor Tom Beehan, Mayor Pro Tem Jane Miller, and Council members Chuck Hope and Charlie Hensley voted in favor of the extra funding, which had been recommended by City Manager Mark Watson. [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…]

Nothing to report yet on Oak Ridge Schools funding, state official says

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Tennessee officials had little to say on Wednesday about the potential loss of state education funding that Oak Ridge school officials have said could cost the school system $1.87 million per month—and lead to a temporary school shutdown on Oct. 1.

“We are starting to have meetings with various people regarding this situation, but at this point, we don’t have anything to report,” said Kelli Gauthier, communications director for the Tennessee Department of Education. [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…]

Guest column: The sky is not falling on school funding, city manager says

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Mark Watson

Mark Watson

The Sky is NOT Falling!

It is not often that a city manager takes the time to write an editorial, but I think this is one of those times.

These past two weeks, I have been working with new School Superintendent Bruce Borchers in reviewing a notice he received from the State of Tennessee that the financial formulas for required school funding have not been met by Oak Ridge. This principle is known as maintenance of effort.

Oak Ridge is one of the few school systems in Tennessee recognized as a city system. The school system is a “department” of the city for budgetary purposes.

Our school system has maintained itself through the years as one of the premier school systems in the state, and citizens here pay much more than the minimum requirements for school maintenance found elsewhere. However, with ups and downs of sales taxes and reductions in some state funding categories, the school and the city have found themselves calculated as coming up short in the statewide formula. This is the problem that Superintendent Borchers and myself find ourselves working together to resolve. With a solution, we will take that to our respective City Council and School Board. [Read more…]