As a former budget committee chair of the Nashville School Board, I’m sharing my thoughts on this thread about the @MetroSchools budget — and the weeks of inaction by Director of Schools Adrienne Battle*, which now threaten to exacerbate city finances. 1/ ⬇️
First, it’s important to understand that schools account for about 39% of the broader Metro government budget. So when the city faces an unprecedented revenue crisis, and @MetroSchools doesn’t significantly tighten its belt, that puts other city services at potential risk. 2/
Yesterday, @Tennessean reported that Mayor John Cooper and the city’s finance team asked @MetroSchools to identify $100 million in cuts during the current fiscal year, which ends on June 30 — just 85 days from now. 3/
To put it in perspective: Schools were budgeted to receive $922 million for operations in FY2019-20 — so we’re talking about a nearly 11% cut just to close the books on the current fiscal year. 4/
Because of the high-velocity nature of the COVID-induced economic meltdown, every single day matters. And every day that Battle doesn’t act puts more pressure on other areas of Metro government. Let’s look at the timeline … 5/
March 13: Battle, in a crowded boardroom filled with employees who were required to show up and cheer her on (in the middle of a public health crisis), is appointed director of schools*. 6/
March 15: Two days later, Cooper takes the bold move — in the interest of public health — to close restaurants and bars across the city that provide tax revenue for schools and other services. A competent superintendent would have jumped into action to rethink the budget. 7/
March 22: Cooper extends the public-health directive to close non-essential businesses and orders Nashvillians to stay at home. Still no word from Battle even though it’s clear the economic meltdown will dramatically affect every area of Metro government. 8/
March 26: @Tennessean reports the Metro government budget shortfall in the current fiscal year could reach $300 million. With schools accounting for 39% of the budget, that would mean the @MetroSchools portion of the shortfall could be $117 million. Still no word from Battle. 9/
March 31: Cooper delivers his first State of Metro address — on the heels of a natural disaster and then a pandemic that are decimating the city’s finances. Still no word from Battle, who’s busy still celebrating her hiring. 10/
April 6: Three weeks after the economic meltdown began, @Tennessean reports that city finance officials had to ask Battle to do something she should’ve already been doing on her own — cutting $100 million from the current fiscal year’s budget. 11/
Now, the school board is stuck with a superintendent lacking the leadership skills to find her way out of this turmoil. So where does @MetroSchools go from here? Unfortunately, nowhere good. 12/
The daily cash burn rate for @Metroschools is about $2.5 million ($922M / 365 days). So if schools don’t reopen this year, there’s potentially $215 million in cost savings over the next 85 days. The only problem is … 13/
… a lot of the school system’s budget is front-loaded or pre-programmed. Meaning, the closer you get to the end of the school year, the harder it is to find cost-savings. Also … 14/
… more than 70% of the school system’s budget is tied up in salaries and benefits. Put differently: Without mass furloughs of employees, there’s no way to get to $100 million in cuts. And still: No word from Battle. 15/
At this point, every single day matters. The school board’s budget committee chair needs to step up and take charge — or step aside and let other board members handle the job. 16/
The first thing that needs to happen: Immediate cuts to the @MetroSchools central office, which is bloated on Battle’s watch with six-figure salaries. If nothing else, that’s a symbolic move that sends a strong message to rank-and-file employees. 17/
The next thing that needs to happen: Identify large pots of money that can be emptied quickly. The most obvious place to look: Charter schools, which are largely unwanted private contractors that now consume $150 million a year. 18/
A key provision in state law allows local school systems to adjust payments to charter schools based on “changes in revenue.” Obviously, we’re experiencing an historic change in revenue — so let’s now exercise that provision in state law. 19/
Charters have already received most of their funds during this fiscal year. But there may still be some residual cost-savings to be found. Meanwhile, charters are lining up for federal stimulus through the Small Business Administration — which local school systems can’t do. 20/
Further, many charter schools regularly brag about sitting on piles of cash from private fundraising and grants at a time when the @MetroSchools rainy day fund, or “fund balance,” has been almost totally depleted. 21/
In this moment of fiscal crisis, let’s give charters the opportunity to step up and be part of the solution for a change — versus them just continuing to sponge taxpayer resources at the expense of traditional schools. 22/
If Battle doesn’t first turn to the charter sector for cost-savings then @MNEA_ and @SEIU_Tennessee need to hold her accountable. Privatizers should be the first to get cut — and career employees should be the last. 23/
Internally, Battle and “chief of staff” Hank Clay are telling everyone not to worry because federal stimulus funds will cover the shortfall. But that’s not true. One-time federal funds are to cover costs directly related to COVID mitigation — not back-filling deficits. 24/
Finally, the Metro Council needs to weigh in sooner rather than later. Indecision and inaction at Bransford Avenue ultimately creates liabilities for the rest of Metro government. It’s up to the mayor and council to lead — and fortunately, they can do it. 25/25
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