A new fund could be created in the Memphis city budget to begin to pay the $57.5 million a court ordered city officials to pay to the Shelby County Schools system for the 2008-2009 school year.
The Memphis City Council will vote Tuesday to ask Memphis Mayor A C Wharton to create the “Schools Litigation Fund” in next year’s budget. The resolution would also ask the mayor to put $4.8 million in the fund next year. That payment would be the first of 12 installment payments to the fund.
Coming up with the funds in one year would require budget cuts, borrowing, and/or depleting the city’s reserve fund, the resolution says. If budget cuts are required, “it would place a significant hardship on the citizens and employees and the City of Memphis.”