Hamilton County School officials are asking the County Commission to stop holding payment in lieu of taxes (PILOT) funds, but let the money flow straight to the schools as it did until about a year ago.
Commissioner Chester Bankston is sponsoring a resolution to that effect that will be voted on next Wednesday.
The funds come from businesses like Volkswagen that have gotten tax breaks, but continue to pay the school portion of the taxes.
Louis Wright, county finance director, said about $1.
2 million is now in the fund, but it may be around $3 million as tax payments come in this month.
Commissioner Tim Boyd backed the Bankston idea. He said the prior school administration was "spending willy nilly," but it is different under Supt. Rick Smith. He said, "I am 100 percent behind Rick Smith. I trust him with our tax dollars."
But Commissioner Fred Skillern said the county wanted to make sure the PILOT funds are used for "new growth" such as building new schools, adding on to schools or major maintenance.
Commissioner Jim Fields said it is agreed that the money will be going to the schools, but he said school officials had never made a request for any of it.
Commissioner Joe Graham, who spearheaded the drive to hold the funds, noted that county spending was reduced $13.5 million last year with some layoffs, while the schools had an increase of almost $2 million. He said county school spending is up $56 million in five years.
Supt. Smith said the school system's upcoming budget took a hit when Governor Bill Haslam announced a 2.5 percent salary increase for teachers. He said that will cost $5 million with only $1.5 million of that amount coming from the state.
He said the school system will save several hundred thousand dollars by ending transportation under the No Child Left Behind program. Tennessee has applied for an exemption from the program, and Mr. Smith said that busing will go away.
Trustee Bill Hullander and Mr. Wright said it is extremely complex to keep up with which portion of the PILOT funds goes directly to the schools and which part stays with the county.