SCS estimates $48 million deficit for next fiscal year - Action News 5 - Memphis, Tennessee

SCS estimates $48 million deficit for next fiscal year

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MEMPHIS, TN -

(WMC-TV) - New municipal districts mean far less money for Shelby County Schools next year. SCS board members are now crunching the numbers and they are predicting a $48 million deficit.

The district says the deficit is the result of revenue losses associated with municipal schools and charter schools. Board members expect to hear much more about the upcoming budget season during a work session Tuesday night.

The estimations include data from recently completed audits of the formerly separate Memphis City Schools and Shelby County Schools, both of which show deficiencies in the way expenses and equipment were accounted for.

SCS board member Billy Orgel says those issues are being addressed.

"And now that you've got a combined system SCS and an audit department that's going to handle both, I think that puts us in a better light," he said. "The policies and procedures will help ensure we have fewer problems as we move forward."

The City of Memphis is no longer required by law to pay Shelby County Schools some $68 million each year. It is money that obviously adds to the funding challenge next year.

The board will also talk Tuesday night about a resolution to formally urge the state legislature to adequately fund public education.

Right now, Tennessee ranks 49th in per-pupil funding.

Action News 5's Jason Miles is in the meeting and will have the latest on the news at 10 p.m.

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