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Tennessee is bringing in a state oversight board to control Memphis school decisions. But it’s still unclear how much of the board’s work will be paid for by the state and how much will fall to Memphis-Shelby County Schools.
Chalkbeat confirmed that Memphis-Shelby County Schools will use its own nearly $2 billion budget to pay the salaries of the nine state-appointed board members. Rep. Mark White, R-Memphis, one of the original bill sponsors, said each member will receive $30,000, the same amount paid to locally elected school board members.
As for funding the oversight board’s operations, there are two potential sources of money. Starting July 1, the oversight board could amend MSCS’ local budget for any expenses it deems necessary, White said. The board will also have access to a designated state reserve fund totaling between $500,000 and $1 million.
The state takeover law passed this spring mandates the Tennessee Department of Education to set aside that money. White said the reserve fund is intended to cover the oversight board’s “startup costs” during its first 90 days in office, such as hiring an executive director.
On Friday, state board members began the process to hire legal counsel. That came on the same day that MSCS added each individual oversight board member to a lawsuit challenging the takeover law as unconstitutional.
Beyond board salaries, White said he couldn’t specify which expenses would be covered by the state reserve fund and which would come from the local district budget. The law establishing the reserve fund appears to place no restrictions on how the money can be spent.
Access to state funding doesn’t end after those first few months. White said the oversight board can continue using the reserve fund for expenses “needed to accelerate the activities of the transformation plan, communications, legal support, and other activities of the board that may need funding outside of general district contracting.”
It’s not yet entirely clear how the board can access the state funds. White, one of the law’s architects, said the board will not have to apply to draw down the funds. But a Tennessee Department of Education spokesperson indicated the board will have to apply for grants to access funds.
Billy Orgel, who chairs the state oversight board, said he’s not afraid to use district money for future oversight board plans. He said it’s normal for MSCS leaders to amend the district budget each year.
“We’re a new state agency,” Orgel said. “So we’re going to have to figure this out. Our state employees and departments will help us.”
The law says any state money not spent by the oversight board this year will carry over to the next. The MSCS oversight board will remain in place for at least the next four years.
Orgel confirmed Thursday that the oversight board is a state body after initial confusion over whether it would be designated as a local body. Supporters of the board have repeatedly said the new body is not a state takeover, despite being appointed by the state’s top elected Republicans.
The oversight board will be subject to Tennessee’s transparency laws for public bodies, including open meetings and public records requirements.
This story has been updated to include information from Friday’s state oversight board meeting and MSCS’ lawsuit.
Bri Hatch covers Memphis-Shelby County Schools for Chalkbeat Tennessee. Reach Bri at bhatch@chalkbeat.org.
