Oak Ridge Today

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…]

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…]