The Loudon County Education Foundation had requested the donation to help support their operations. The foundation purports to benefit both Lenoir City and Loudon County school systems with various assistance programs.
The most recent financial statement available for the foundation shows that nearly 64% of their $119,000 budget went to foundation salaries and operations.
After last year's donation board member Lisa Russell
requested an Attorney General's opinion on the matter through state
representative Jimmy Matlock. The Attorney General's opinion states that
a board of education has no authority to make donations to non-profits.
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With this year's budget even tighter and the attorney general's opinion stating the donation would be illegal, the Loudon County Education Foundation is again back with their hand out. They're again asking for another $16,000.00.
Education Foundation's are not new. Many schools and districts in Knox and surrounding counties are supported by foundations. However the Loudon County Education Foundation appears to be the only one who takes money from the schools rather than giving to the schools. Last year Loudon County Schools gave the foundation $16,000.00 and Lenoir City Schools gave the foundation $8,000.00.
One foundation in Knox County raised $200,000.00 their school. The Oak Ridge Foundation raised more than 8 million dollars for the school's building program. But in Loudon County, our foundation needs the school systems to support them.
To Director Wayne Honeycutt's credit, he informed the foundation and the school board that depending on how this year's budget turns out, "we may not have sixteen dollars to give away.
Below is a link to a story about area foundations.
School Foundation: Who Has One, Who Wants One And Why
By Rebecca Williams knoxnews.com
LCEF director requests funds from schools
Michele
Dicken, the new executive director of the Loudon
County Education Foundation (LCEF), came to the
county school board workshop Thursday night to
ask the board to consider reinstating the
traditional $16,000 for the foundation into the
2009-2010 school budget. The Lenoir City School
System approved their usual $8,000 for this
year.
She described the LCEF as the "central hub" for
business and community members to contribute to
county and city students. Dicken said the
$16,000 is "a small amount for the vast services
we provide." Those services include the Young
Achievers Awards, awards for outstanding
teachers and new teachers, scholarships for high
school seniors and GED graduates along with
leadership programs such as Leadership Loudon
County for Adults, an annual essay contest for
grades 3-8, classroom grants to teachers, a
teachers' workshop and resource center and
continuing education grants for teachers to
study Spanish.
She told the board losing the Loudon County
Schools' contribution "would really hurt us" and
if a lack of funds caused them to cut programs
"the kids are going to be the ones who suffer."
Board member Lisa Russell said while no one
doubts the good works of the foundation, it the
legality of the contribution that concerns
her. She referenced a recent opinion by the
state attorney general that stated school boards
are not allowed to give donations to non-profit
organizations. Russell said she didn't think
there could be a question after the AG's
opinion.
Board member Van Shaver also said he didn't
think a contribution was a good idea. He said
the LCEF was "asking for support from the school
system they're there to support" and given the
AG's opinion "we cant' give you money and in my
opinion we shouldn't."
Not all were opposed to finding a way to
continue supporting the organization. Board
member Gary Ubben said the relatively small
contribution from the county schools results in
a much greater return on the investment in the
form of programs for county students and
teachers.
The board had originally asked the county
commission to take over contributing to the LCEF
but the commission had sent it back to the
school board. Director of Loudon County Schools
Wayne Honeycutt called his experience with the
foundation "outstanding" and said the county
school system receives "four or five times" the
amount in services for the investment.
Honeycutt said while the attorney general's
opinion was that school boards cannot make a
donation, the board's attorney disagrees and the
school system "can provide funds but not as a
donation."
Honeycutt also said if the board wanted to give
money to a support organization there is "no
better place to put it" than the LCEF. The
county schools Budget Director Alysa Phipps said
she had been in contact with state officials and
found the board could give funds to the LCEF but
not as a contribution to a non-profit
organization but through a contract and it would
be budgeted as "other services." The board is
set to vote on funds for the LCEF on Oct. 15.