Memphis oversight board advances plans to take control of school district

A state-appointed body, the nine-member Educational Oversight Board, is preparing to assume authority over Memphis-Shelby County Schools, Tennessee's biggest district. At an Oct. 8 meeting it unanimously adopted a process for approving contracts and spending, and it also took some organizational and staffing steps. Days earlier, a federal judge signaled that a court hold on the takeover would end after the board tells him it is fully prepared to do the job, according to reporting the article cites.

The takeover is not final. The district and Shelby County are contesting the state law in court, including a separate suit filed Oct. 7 in Chancery Court. They argue the law strips power from locally elected officials. Under the law, the board would have the last word on contracts above $50,000, the yearly budget and charter school applications.

The article links the arrangement to a state-ordered forensic audit released in July, which found weak governance, purchasing and internal controls. Auditors flagged over $54 million in 2021 through 2024 spending as potential fraud, waste or abuse, which is not a criminal finding. Much of it involved a custodial contract. The district also faces an estimated $1.6 billion in building needs over ten years, a decline of over 9% in enrollment across a decade, and possible closures of up to 10 more schools, per the superintendent.