MCS Files Another Suit Against City

MEMPHIS, Tenn. - The City of Memphis is slapped with a second lawsuit from the Memphis City School district; this one is demanding the city pay $50 million and not a penny less.

It's yet another twist in the battle over funding. Both sides disagree on who-owes-who-what, and they aren't budging.

The schools say if they don't get money they're owed, students' education is in jeopardy. Meanwhile, the city is fighting so taxpayers don't end up paying the price.

The bottom line is, don't expect any decisions anytime soon.

Since the City of Memphis tried cutting funding to Memphis City Schools last year, two different courts have ruled the city must pay the schools $50 million a year. But City Councilman Myron Lowery isn't done fighting, and the city plans to take the case to the Supreme Court.

"The school board should not receive anything until this case is resolved, that's my position," said Lowery.

Other council members disagree, saying two court rulings speak volumes. Councilman Jim Strickland recently came up with a plan to give the district $40 million, and make up the rest by forgiving $10 million the city says the school district owes it from the 1990's.

"Businesses and individuals throughout our community are having to make do with less now," said Strickland. "I think both city government and the school board should have to do the same."

The problem is, the district says it doesn't owe the city any money. Attorneys for the schools filed a lawsuit Friday saying they want $50 million from the city and nothing less.

According to City Council Attorney Allan Wade, "If they've got proof we forgave it, it's over."

During yet another hearing on another lawsuit Friday, a judge ordered school officials prove their $162 million debt to the city was forgiven. Wade doesn't think they can.

"A lawsuit is the opportunity to put up or shut up," said Wade. "So if they got it, bring it. If they don't, forget it."

The attorney for the school district told FOX13 over the phone, they have been patient and had no choice but to file the lawsuit Friday.
He says if they don't get $50 million they could risk losing state funding and jobs.

Council members don't buy it.

Recently, the superintendent went to Nashville lobbying for a school-run police force, and just announced 2% across-the-board pay raises.

"The public does not believe they're going to have to make dramatic cuts, especially when they say every school board employee is going to get a 2% raise," said Strickland.

"This is the same cry the school board gave 2 years ago, 'we're going to have to lay off teachers close schools,' none of that happened," said Lowery. "I submit to you none of it will happen this time."

The council has set aside 2 hours next Tuesday to discuss school funding. But again, what most agreed on Friday is that this won't be settled until a judge makes a final ruling, and probably a Supreme Court judge at that.