Tennessee government think tank considers different options for funding education

JOHNSON CITY, Tenn. --- Access to resources for school projects has pitted cities and counties in Northeast Tennessee against each other in recent years, leading the state's government think tank to consider different models to equitably fund public education.

The Tennessee Advisory Commission on Intergovernmental Relations (TACIR) analyzes some of the state's toughest policy issues and gives recommendations to members of the General Assembly.

The group met Wednesday in Nashville to discuss, among other things, how to fairly fund education in counties with multiple school districts. A draft report was published, though no final recommendations will be made until January.

"In general, we've got a pretty good system," said state Sen. Jon Lundberg (R-Bristol), who sits on the commission. "There are tweaks we need to make across the board but it's not a significant, whole-sale change that's necessary, I don't believe."

The issue of equity between county and city students came to a flashpoint with the Jonesborough school project. By entering into an agreement with the Town of Jonesborough to lease a new K-8 school, Washington County avoided having to send matching funds to Johnson City under state law.

Washington County Mayor Joe Grandy is now in negotiations with the City of Johnson City representatives over a funding agreement for Johnson City Schools District.

"I think there's an expectation that things like capital funding be shared in an equitable manner," Johnson City Superintendent Steve Barnett said. "It doesn't feel equitable at this point."

Johnson City School Board members have raised concerns over city residents paying both city and county property taxes while not receiving the same attention as county schools for capital school projects by the Washington County Board of Commissioners.

TACIR has yet to make any formal recommendations on changing the state's funding method for education but offered an alternative that would direct more money to county school districts.

According to the draft report, city schools spent $413.3 million more on students than county schools in the 2017-18 school year. To level the playing field, TACIR suggested lawmakers could decide to fund education based on a local government's capacity to pay.

Under this model, Washington County would receive an increase of $3.4 million and Johnson City would see a decrease of $6.8 million in state education funding.

"There's an argument that says most of the sales tax and property tax is collected in Johnson City, and that's true," said Bill Flanary, director of Washington County Schools. "But there's another point of view when it comes to children, why should that matter?"

Flanary suggested many of the education funding woes could be alleviated if the state fully funded teachers already in classrooms, freeing up dollars for capital projects in debt-burdened counties.

"I got into this in '82 and we didn't have enough funding. When I retire, we won't have enough funding. That's public education," he said.