Friday, July 5, 2013

YES! MILLINGTON CAN AFFORD MUNICIPAL SCHOOLS!



By Ernest W. Carter and Jim Mitchell

On June 18, 2013, a report was published which questioned the financial ability of the City of Millington to establish and maintain a municipal school district. The author of that document, James Knipple, admitted in the report that his “…knowledge of school finance is very limited.” Further, Mr. Knipple encouraged “…anyone to check my numbers.”

At the request of several Millington citizens and elected leaders of the City of Millington, the Knipple financial projections have been carefully reviewed for errors in facts or assumptions. Two individuals, Ernest W. Carter and Dr. Jim Mitchell were asked to conduct the review. These individuals are very experienced educators and have extensive knowledge of Tennessee school district finance. Their conclusion is yes, the City of Millington can afford to operate its own municipal school district. 

Ernest W. Carter is a lifelong Millington resident and a Millington Central High School graduate. He also holds both Bachelor’s and Master’s degrees. Mr. Carter served Shelby County Schools (SCS) for more than 33 years, including 12 years of service as the Chief Financial Officer and Assistant Superintendent for Business and Finance. He successfully developed and administered the entire school district’s annual operating budgets. In addition, he expertly managed the school district’s day-to-day business operations with average annual operating budgets of more than $250 million.
Dr. Jim Mitchell served Shelby County Schools for almost 34 years, including two years as principal at Millington Central High School, 9 years as Assistant Superintendent for Operations and 5 years as Superintendent of Schools. During the years of Carter’s and Mitchell’s service, the Shelby County School District operated with annual balanced budgets and annual operating surpluses. Unfortunately, neither Mr. Carter nor Dr. Mitchell was consulted by Mr. Knipple prior to the release of his report.

The Knipple report contained the following errors in facts or assumptions:

  • Assumption-Revenues will increase at 1% per year. Incorrect. The Tennessee Basic Education Program (BEP) provides the single largest source of school district revenue. By state law, the BEP revenue amount sent to each local school district is adjusted up annually for inflation. Other school district revenue sources also are expected to increase. An “assumption” of 1% revenue growth is not appropriate.
  •  Assumption-Salaries and fringe benefits will increase at 1.5% per year. Incorrect. This assumption would mean that both the Millington Board of Education (MBOE) and the Millington Board of Mayor and Aldermen (BMA) would have to approve spending 50% more than the amount of revenue they had available. Tennessee law requires the local school board to submit a balanced budget each year. The BMA has final approval of the school budget and sets the local property tax rate. The local school board will not have the authority to levy any taxes or set the local property tax rate. Only the BMA has that authority.
  • Assumption-Millington would have to pay extra to establish a teacher retirement system. Incorrect.  All teachers currently pay their share into the Tennessee Consolidated Retirement System, and no additional premium must be paid to create a new school district.
  •  Assumption-Health insurance premium costs will increase at a rate that is 100% more than the assumed rate of revenue increases. Incorrect. The Millington Board of Education (MBOE) will determine the type and scope of all health insurance plans offered to employees. The MBOE will be able to monitor costs and to determine the amount that employees will pay and the amount that the Board of Education will pay for health insurance.
  •  Assumption-School transportation and bus costs were not included in the SES Feasibility Study. Incorrect. The 2012 Southern Educational Strategies, LLC feasibility study projected that 27 bus routes would be used, and the projected costs to provide this service were based on actual SCS costs or the costs to sub-contract transportation services to a vendor who will own the school buses.
  • Assumption-Millington has old school facilities and will have to build new school buildings. Incorrect. The City of Millington has some of the newest school buildings and will need to operate only two elementary schools, one middle school, and one high school. Other than E. A. Harrold Elementary, each of the existing Millington school facilities was either built or renovated in recent years.
Using the incorrect assumptions and facts listed above, Mr. Knipple concluded that the City of Millington school district could have a $1.1 million dollar annual deficit after 10 years. He also assumed that the only revenue source to close such an assumed deficit would be the local property tax. The report ignored the fact that the major source of school district revenue, the Tennessee Basic Education Program (BEP), is adjusted up annually for inflation. In addition, the recently approved ½ cent Millington sales tax increase will produce at least $1.2 million for schools in 2013, and that amount is expected to increase each year. 


In summary, the City of Millington can afford to operate a city school system. In fact, because the citizens recently approved a ½ cent sales tax increase, Millington actually will receive more local revenue per student than the unified Shelby County Schools.
Currently, 27 other Tennessee cities successfully operate their own school districts, including cities in West Tennessee which are smaller than Millington such as Alamo, Bells, and Humboldt. The Millington Board of Education (MBOE) is required to operate within its annual revenues and must submit an annual balanced budget. Each year, the Millington Board of Mayor and Aldermen (BMA) must review and approve the school budget, and the BMA will have full control of the property tax rate.
It is not logical to assume that over a ten year period, both the Millington Board of Education and the Millington Board of Mayor and Aldermen would approve annual school district expenditures that exceeded their annual revenues by 50 percent. However, that was the logic that was used in the Knipple report. The assumptions in the report are not reasonable, and the facts about revenue growth and retirement expenditures are wrong.  Therefore, the conclusions stated in Mr. Knipple’s report are incorrect. 

YES, MILLINGTON CAN AFFORD MUNICIPAL SCHOOLS!

Friday, June 28, 2013

"From The Heart" by David Pickler, Unified School Board Member


Dear Friends,

I am pleased to present this week's edition of "My Two Cents."  This is a weekly publication filled with insights, anecdotes, and reflections on topics that I am passionate about.  It is also an opportunity for me to share my personal thoughts and experiences with my friends and associates.  If you would like to unsubscribe from this email, please feel free to send me an email.  I hope you will enjoy this edition and enjoy your weekend. 

Sincerely,
David Pickler


 



 From the Heart  
"The Legacy of  Shelby County Schools"


SHELBY COUNTY SCHOOLS

1867-2013

The End of an Era

 

 

     This is a very difficult column for me to write because I have had the honor and privilege over the past fifteen years to serve and advocate for one of America's greatest school systems, Shelby County Schools. As many of you are aware, on July 1, Memphis City Schools ceases to exist, forcing a "merger" with Shelby County Schools. This transfer of the responsibility for educating the 110,000 public school children within the City of Memphis from MCS to SCS is the direct result of the actions of the MCS Board of Education on December 20, 2010 to vote, in a narrow 4-3 decision, to surrender their charter. This action was ratified by vote of the people of Memphis in a referendum that saw well less than twenty percent of registered voters cast ballots to "transfer the administration of MCS to Shelby County Schools." Most voters believed that they were transferring responsibility of the education of their children from a struggling MCS to the primarily suburban, high-performing SCS. Unfortunately, that is not what occurred. 


Almost immediately, legal strategies were implemented to effect a "hostile takeover" of the Shelby County Schools governance, administration, and policy structure by the majority MCS interests. Within the Memphis and Shelby County area, two school systems had been operating for well more than a century. Memphis City Schools was created as a type of special/municipal school district to serve the children of the largest city in the county (as well as the State of Tennessee). Under Tennessee law, absent a municipal or special school district being in existence to serve the educational needs of the children, all public education is administered by the County School District for each of Tennessee's 95 counties. At the time of the surrender of the MCS charter, approximately 110,000 children were served by Memphis City Schools. It was a predominantly urban district with significant challenges due to poverty concerns, but also due to a lack of leadership and direction from its dysfunctional school board and revolving door of short term Superintendents, each with their own reform agenda. Shelby County Schools was predominantly rural and suburban, serving nearly 50,000 children. While receiving dramatically less funding than MCS on a per pupil basis, SCS had a legacy of excellence, with very high graduation rates, parent participation and engagement, and student achievement performance. SCS was considered to be one of the best school systems in the nation, due at least in part to a track record of consistent leadership by district administration and the school board. When the surrender ratification vote was taken, suburban residents were denied the right to have their voices heard at the ballot box. 

Over the next several months, the Memphis legal strategy was to move to dismantle the leadership structure of SCS. As a result, on October 1, 2011, a federal judge ordered the creation of a new school board with 23 members, the seven former members of the SCS Board, the nine former members of the MCS Board, and seven new Board members to be appointed by the County governing body. This action set into motion the process that has seen virtually every vestige of a once great school system to be methodically destroyed and overtaken by the policies and personnel that doomed MCS to mediocrity.

 

     As we approach the formal "merger" date, very little remains of the administration that the people of Memphis had voted to transfer control of their district. Both Superintendents have demanded buyouts and left. Many senior administrators and school leaders have voted with their feet and left the district. The former MCS is slowly being taken over by Charter school operators and State-run Charters. And the people of Memphis and Shelby County have begun their own personal exodus to surrounding communities and counties. The long term implications of these decisions to relocate residences and spending patterns to areas where educational choices are more attractive is potentially disastrous to the economy of the region.

 

     For nearly 150 years, Shelby County Schools built a legacy of educational excellence and student achievement that was the envy of districts across America. Strong leadership, visionary and supportive Boards of Education, engaged parents and families, committed community and business investment, and highly dedicated teachers and staff all were essential ingredients to creating an environment for excellence. While SCS was traditionally one of the lowest funded school systems in the country, its academic performance and commitment to maintaining a culture of mutual respect and family empowered this little district to achieve true greatness. The last act of the independent Shelby County Schools family of Administrators, Board members, parents, community stakeholders, faculty and staff was to achieve District-wide accreditation. This recognition of the excellence of SCS was the culmination of a three year review process of deep and wide research into SCS operations and academics. This accreditation validated and memorialized the true legacy of a great school system, as a place where every child was empowered with the opportunity to achieve their dreams and fulfill their potential.

 

     As we move into this "shotgun wedding" of a merger, the future of public education in Shelby County is uncertain. It is highly anticipated that each of the six suburban municipalities that comprised SCS will establish their own school districts prior to the 2014-2015 school year. With the Tennessee legislature removing any limits to Charter school approvals and severely limiting the ability of local Boards of Education to effectively limit Charter school approvals to only those most qualified to operate high quality Charters, and with the State continuing their move to takeover under performing former MCS schools with State run Charters, delivery of quality public education will be significantly challenged in this community. 

That is another ultimate tragedy of the political motivations that propelled four members of the MCS Board to push so hard for the charter surrender. Their zeal to destroy Shelby County Schools and promote further urban-suburban division may have, as its ultimate consequence, the utter destruction of public education as we know it in Shelby County. This could destroy Memphis' long term economic prospects . Memphis and Shelby County are filled with dedicated community servants who care deeply about their city and region. As is often the case, education can be used as a political pawn in the chess match of governance. Unfortunately, that can result in check mating the educational opportunities for those most at risk. And that is the ultimate defeat. Shelby County Schools legacy of excellence will be reborn in the six suburban communities. The resolve of suburban residents to fight for educational excellence and legislative success to empower the independence and autonomy of their schools is a testament to their commitment to their future. God Bless Shelby County Schools.
 

Sunday, June 23, 2013

TOWN HALL MEETING

**********CALL TO ACTION!!************

TOWN HALL MEETING

to discuss our Millington School System

 Thursday, June 27, 2013
Civic Center
6:00 p.m.

Mayor Jones will be discussing how we CAN support a school system. Please come out in support of  Millington Schools! Bring signs and wear your buttons! We must show solidarity in this turning point in Millington history.

**********COMMUNITY INVOLVEMENT**********


Retirement Reception (surprise)
to honor
MR. JOHN PRICE

Sunday, June 23rd  (today)
Patriot Bank, 8376 US Hwy 51 N
2:00 p.m. - 4:00 p.m.

After 41 years of service at Millington Central High school, Mr. Price is retiring. He has been instrumental in raising the success rate of our students in upper math courses. Whether you were fortunate enough to have had him as an instructor or are just a Millington resident, please stop by today for a minute to thank him for his service to our community.