school finance

School leaders say it’ll take $1 billion to educate Memphis students

If asking for more money to add services is better than asking for more money to avoid cutting services, then Shelby County Schools is in a good place.

Superintendent Dorsey Hopson wants to use money from an expected county surplus and money from the school’s reserves to help the district pay for services like counseling and more security. His proposed operating budget for next year is $1 billion.

He’d like the county to pay the district $13 million from its expected surplus, and he’d use $25 million in the district’s reserve to help complete his spending proposal for next school year. The budget is up from $985 million last year. This is the second year in a row that the Memphis district is not facing severe cuts.

“We’re actually excited about the budget this year,” Hopson said. “To move from deep deficits to the second year of investments is huge.”

Included in the budget: $7 million for teacher pay raises, $4.3 million to hire 35 school counselors, $2 million to hire 30 school resource officers, and $800,000 to hire 10 more behavior specialists.

It also sets aside $2.4 million to add seats to the district’s preschool program, and $8 million to revamp its career and technical education programs, and to add more Advanced Placement, dual enrollment, and honors courses.

For more information on these budget items, read our primer.

The district and a coalition of community members and organizations successfully lobbied the county commission two years ago for a $22 million boost in funding to prevent a slew of cuts. But this year, Hopson’s request could face some opposition from county commissioners and county Mayor Mark Luttrell. He wants to see the county use an expected surplus — which could be as much as $25 million — to lower property taxes.

The county budget will be the last one Luttrell oversees before another mayor is elected this summer. In Luttrell’s final State of the County address in February, he said “even with an increase of local funding, we have yet to experience the improved outcomes that we so desperately desire.”

The presentation to school board members Wednesday afternoon gave details of what the district would look like if it had all the money it needed to provide adequate support and resources for every student — most of whom come from low-income families. Only some of that money, $38 million, was included in the budget proposal.

Hopson’s team estimated the total cost would add $82 million more to his proposed budget.

For years, school board members have pushed Hopson to think through those details so they can lobby the county and state for more funding. Shelby County Schools, among other Tennessee districts, is in the midst of a lawsuit against the state, saying it doesn’t adequately pay for its own funding formula, shorting them $100 million every year.

Part of the rosier revenue picture for Shelby County Schools comes from a slight uptick in enrollment this year after several years of free fall and Gov. Bill Haslam’s planned increase in education spending. That produced about $15 million more in state funding compared to last year, said Chief of Finance Lin Johnson.

The public can hear more about the budget during the board’s work session Tuesday, April 17. The school board is expected to vote Tuesday, April 24 when there will also be a public comment period. The budget would then go to county commissioners for approval.

School Finance

Indianapolis Public Schools sold a temple and bottle plant recently, but the sale of Broad Ripple is more controversial

PHOTO: Dylan Peers McCoy
Phillips Temple

When retired teacher Clara E. Holladay passed away in 1946, she left the school district where she taught a generous and unusual gift: Two duplex houses on the northside of Indianapolis.

Holladay’s will stipulated that the income should “assist good and worthy students, who would not, without assistance, be able to secure a high school or college education,” according to the Indianapolis Star.

Indianapolis Public Schools held on to the houses at 54th Street and North College Avenue for the next seven decades. Last year, the district sold them for $423,000. (The proceeds of the sale were invested, and the interest will continue to fund scholarships.) Between September 2015 and the end of 2018, district officials expect to have sold 10 properties and raised nearly $21 million, according to information provided by the administration.

Many sales, like Holladay’s duplexes, occur without much attention. But the district’s plan to sell the building that contained Broad Ripple High School, after closing the school this year, has drawn significant attention. And it has ignited a simmering controversy over whether the district should be forced to sell the property to a charter school, as state law currently requires, or be allowed to sell it to a developer.

But while Broad Ripple has historical and personal significance, it is one of at least four former school buildings the district has sought to sell in recent years. Over the last 50 years, enrollment in the district fell from nearly 109,000 students to 31,000. In an effort to raise money for the cash-strapped district and reduce its stockpile of underused buildings, Superintendent Lewis Ferebee’s administration has made a flurry of sales.

The money that the district raises by selling property is a short-term salve for its budget woes. But it has helped pay the bills at a time when Indianapolis Public Schools is consistently running a deficit. Next year the administration projects a deficit of about $45 million, and officials plan to ask voters to increase school funding in November.

Indianapolis Public Schools set off a real estate frenzy when it sold a former Coca-Cola bottling plant on Mass Ave. that will soon become a high-end development. The district has owned the striking art deco property since the late 1960s, using it to house a bus depot and other central services. More recently, it purchased a historic church — the Phillips Temple — in 2011, and the administration planned to demolish it to make room for a parking lot, according to the Indianapolis Star. Instead, it sold the historic property to a developer in 2015.

Here is a list of the properties the district has sold since 2015, according to the district

Property: Minnie Hartmann School 78

Buyer: John H. Boner Center

Closing Date: 9/7/2015

Sale Proceeds: $400,000

Property: Phillips Temple

Buyer: Van Rooy Properties

Closing Date: 9/17/2015

Sale Proceeds: $122,500

Property: CIRT

Buyer: Milhaus

Closing Date: 11/24/2015

Sale Proceeds: $1,100,000

Property: Florence Fay School 21

Buyer: TWG (Whitsett Group)

Closing Date: 2/26/2016

Sale Proceeds: $500,000

Property: Otis E. Brown School 20

Buyer: Tessera (Yeshua Society)

Closing Date: 7/20/2016

Sale Proceeds: $255,000

Property: College Avenue Doubles

Buyer: L. Stoeffer and Associates, Inc.

Closing Date: 12/21/2016

Sale Proceeds: $423,000

Property: SCIPS – Service Center IPS

Buyer: Bottleworks District, LLC

Closing Date: 9/1/2017

Sale Proceeds: $12,000,000

Property: Mallory/Ford

Buyer: Ford TWG, LLC

Closing Date: 11/3/2017

Sale Proceeds: $1,650,000

Property: Meridian Transition

Buyer: Families First

Closing Date: In Negotiations / July 2018

Sale Proceeds: $1,575,000

Property: FMD/Polk

Buyer: TWG Development, LLC

Closing Date: Pending Sale / December 2018

Sale Proceeds: $2,750,000

IPS referendum

Ferebee, pleading for more money for schools, says teacher raises, security upgrades are on the ballot

PHOTO: Dylan Peers McCoy
Nathan Harris, who graduated from Arsenal Technical High School, thinks the schools need more funding to serve students from low-income families.

At a quiet meeting held Wednesday in a near northside church, Superintendent Lewis Ferebee made his case: Indianapolis Public Schools needs more money from local taxpayers.

At stake when voters go to the polls in November: The ability of the state’s largest district to foot the cost of raises for teachers and school security improvements, among other expenditures officials deem necessary. There are two property tax hikes on the ballot this year to increase school funding.

Ferebee told the few dozen people who came to the meeting — parents, alumni, district staffers, among them — that, with adequate funding, he envisioned offering the best teacher pay in the state and attracting some of the most talented educators.

“I think every parent in this room would appreciate that,” he said. “We have to be competitive with teachers’ … compensation.”

The superintendent presented a broad outline of the district’s financial woes, but there was not much new information. He devoted most of the meeting to answering questions from those in attendance, who were alternately supportive and skeptical of the referendums.

Reggie Jones, a member of the Indianapolis NAACP education committee, said that while he supports the ballot initiatives, he also wants to know more about how the money will be spent.

Janise Hamiter, a district bus attendant, expressed concern that some of the money raised will be used to make improvements at buildings that are occupied by charter schools in the district innovation network.

“Private money is going to be used for charter schools. Public money is going to be used for charter schools,” she said. “They are getting both ends of the stick if you ask me.”

She said she hasn’t yet decided which way she’ll vote.

One of the proposed referendums would raise about $52 million to pay for improvements to school buildings, particularly safety features such as new lights, classroom locks, and fire sprinklers. The board voted earlier this month to add that request to the ballot.

The second measure, which is likely to generate significantly more funds, would pay for operating expenses such as teacher pay. Details of that proposal are expected in the coming weeks. The board will hold a July 17 hearing on the measure.

The community meeting was notable because this is the district’s second time this year campaigning for more money from taxpayers, and the success of the referendums could hinge on whether Ferebee makes a strong case to voters. Last year, the district announced plans to seek nearly $1 billion in two referendums that were to be on the ballot in May. But community groups, notably the MIBOR Realtor Association, balked at the size of the request and criticized the district for not providing enough details.

Eventually, the school board chose to delay the vote and work with the Indy Chamber to craft a less costly version. The latest proposal for building improvements comes in at about one-quarter of the district’s initial request.

Nathan Harris, who graduated from Arsenal Technical High School but no longer lives in the district, said he supports increasing school funding because he’s familiar with the needs of Indianapolis schools. When so many students come from low-income families, Harris said, “more resources are required.”