Small Tennessee school district closes, citing financial struggles, need for new income

Clay County Tennessee has had to suspend classes.

It seems that the district just doesn't have the money to keep the schools running without some kind of financial support.

Classes in a small, financially struggling school district in northern Tennessee have been canceled until officials can find a way to generate more revenue.

The kicker is that what sent this district over the edge is the ACA. Yes, Obamacare.

"Clay County's inability to generate the revenue to offset the mandates is what's caused this to come to a head," he said. "The straw that broke the camel's back was really the Affordable Care Act for us and it has made it very difficult for us to have our employees properly covered and meet the mandates of the law. That was going to require new revenue and the commission felt like they couldn't do that through a tax increase."

You see, this is already the 7th highest property tax district in the state, property taxes being the traditional means of raising school funds, in a poor, rural county. In short, you can only bleed a stone so dry before it has nothing left to give.

You can try to blame the lack of Medicaid expansion, but as an employer, the school district has to offer certain plans, especially to union teachers. So that isn't the problem. It's the ACA mandates that has left them without any flexibility in their benefits options.

Now, 1,150 students are not in class and parents are scrambling to figure out what to do until the funding hole can be closed and classes can resume.

a reply to: ketsuko

And i remember you had issues with how things works in Sweden, embrace Socialism

originally posted by: Hyperia
a reply to: ketsuko

And i remember you had issues with how things works in Sweden, embrace Socialism

Ah, irony. This is the public school system. In the United States, it is one of the few nearly 100% socialized systems we have. See how it fails?

a reply to: ketsuko

It is possible that these will be the kids with the head start and chance to succeed that is denied to every other child who is forced to attend public school.

One can only hope.

Unfortunately, they will likely find a way to reopen the district.

It's either that or they return the property taxes they collected for the school system so the parents can decide how to educate their children.

a reply to: ketsuko

Ill rephrase my quote: State funds School = Socialism, See how it works?

a reply to: Hyperia

Unfortunately, we have nothing but evidence of how it does not work.

I will concede that there are some basic things that local public schools can do with some success in the childhood years such as the three Rs but, once any real subjects are touched upon, it is not only insufficient and haphazard but actually corrosive.

a reply to: greencmp

Do all the schools that are doing fine not count? I am missing the logic here how this one school with its troubles with the aca that is not socialism at all shows anything to the sort.

Seem when it comes to our police fire and military no one had any issues with socialsm... weird.

a reply to: Sremmos80

At the moment, we still have local fire departments and local police but, that may be changing if the push to nationalize law enforcement is realized.

The military is a department of the government, you could say that the congress is also a socialism because all of their expenses are paid for by a "single payer".

Centralized education is a bad idea. It is as simple as that, there is no good way to do a bad thing.

a reply to: greencmp

I think you have some illusion about schools in the US, but its understandable your culture is at an infant stage.. We just pet you on the head and say, well you tried.. Usually when you fail for the millionth time, you kinda figure some stuff out the logical way, the US.. Nope.. Youll get there eventually, probably not.. But its gonna be a great show

a reply to: greencmp

Centralized education is a bad idea. It is as simple as that, there is no good way to do a bad thing.

And now you elaborate..

a reply to: greencmp

And schools are paid for locally too, that is the problem we see here. The county can't support it.
So cool, this isn't an example of socialism gone bad.

If it is because of the aca that isn't socialsm but crony Capatilism in the guise of a socialst program

I think central standards are great if we still have states that want to teach young earth and creation.

When the states take care of that let's talk.

a reply to: Hyperia

Yes, 40 years into this social engineering experiment in educational intervention which has nearly extinguished a whole generation of Americans, it's important that people have hope that the damage can be reversed.

It is an ongoing crime against civilization.

originally posted by: Sremmos80
a reply to: greencmp

And schools are paid for locally too, that is the problem we see here. The county can't support it.
So cool, this isn't an example of socialism gone bad.

If it is because of the aca that isn't socialsm but crony Capatilism in the guise of a socialst program

I think central standards are great if we still have states that want to teach young earth and creation.

When the states take care of that let's talk.

Eliminate all public sector unions and dissolve the department of education. Return all of the "revenue" to the taxpayers.

Then we'll see how kids do when they have a choice.

The burden of proof is on the totalitarians who have made it a crime to not attend their institutionalized facilities.

It never ceases to amaze me that interventionists always point to the very damage that they caused as evidence for the need for further, more substantial, intervention.

a reply to: greencmp

Come on, use logics.. What does school offer ?
30 Kids in a class one teacher, now think.

a reply to: greencmp

What is the difference between kindergarden and School?

originally posted by: Hyperia
a reply to: greencmp

What is the difference between kindergarden and School?

Reminds me of the saying, "everything I need to know I learned in kindergarten".

I can only say that I don't think the author intended it to be construed as a comprehensive syllabus.

a reply to: Sremmos80

Actually, yes, it is socialism. Just because the system does not operate on a Federal level does not make it any less socialist. Are the Israeli kibbutzes any less collectivist/socialist for all that they are not nationwide in Israel? Of course not.

The same thing applies as it does with police and firefighters.

I appreciate the selectiveness of the approach though. They are socialist when someone complains that American is not a socialist country, but when we point to one that is a failing system because it is mandated they must provide more than they can afford for their socialist system, it isn't convenient for you to own that it is indeed a local socialist system.

And the reason the system is falling apart financially is because of unfunded mandates from the Fed who, in its infinite wisdom, decreed that its one-size-fits-all approach was best for all rather than leaving small system like this one to continue to seek their own solutions, and now the system is collapsing and everyone in it is more or less SOL unless they have parents who can afford to pay for a private school.

The population is around 7,700 and they have 1,150 students. The unemployment rate is around 8-9 percent. They have had problems for years and the ACA was the final straw.

With 7,765 people, Clay County is the 90th most populated county in the state of Tennessee out of 95 counties.

Why are they the 7th highest property taxed district in the state????? Something is wrong here. Either the property taxes already in place aren't allocated correctly or somebody is spending money where they shouldn't or else flat out embezzling or thieving.

ETA

Sounds like the school district isn't exactly closing

Superintendent Jerry Strong told Channel 4 a temporary injunction reversed that decision.

They've got problems, the ACA and other government mandates aren't helping. But other school districts with less funds are making it work. I just have to wonder about their detailed budget. Not defending the ACA by any means but they need some new eyes or new leadership.

CLAY COUNTY TN ..
Total population = 7,861
Total housing units = 4,282
Total households = 3,358

CLAY COUNTY TN covers 2 cities
Celina (ZIP Code 38551) = 4,106
Moss (ZIP Code 38575) = 1,172
note: 53 Cities within 30 miles of Celina, TN

ZIP Code 38551 ..
Average Assessed Home Value = $96,400

How Your Property Taxes Compare ..
Based on an Assessed Home Value of $96,400

Clay County = $600 or 0.622% of Assessed Home Value
Tennessee = $710 or 0.736% of Assessed Home Value
National = $1,149 or 1.192% of Assessed Home Value

ZIP Code 38575 ..
Average Assessed Home Value = $96,400

Clay County = $600 or 0.622% of Assessed Home Value
Tennessee = $710 or 0.736% of Assessed Home Value
National = $1,149 or 1.192% of Assessed Home Value

smartasset.com...

a reply to: ketsuko

I think a restraining order was filed and the schools remain open until a federal judge can hear the case on Monday

It won't last long for every other district either.

People around here are fed up with crazy property taxes, going mainly to the schools.