WEBVTT

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This is a
production of WKNO Memphis.

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Production funding for
"Behind the Headlines"

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is made possible
in part by...

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Shelby County Mayor
Mark Luttrell

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tonight on
"Behind the Headlines."

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♪ Theme Music ♪

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♪♪♪

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I'm Eric Barnes,

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publisher of the
Memphis Daily News.

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Thanks for
joining us.

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We are joined
tonight by

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Shelby County Mayor
Mark Luttrell.

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Thank you for coming back.

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Thank you Eric.

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And Bill Dries, Senior Reporter
of the Memphis Daily News.

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We'll start with
a conversation.

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Maybe it's almost
a national debate,

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it's obviously a local and
state-wide conversation

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about the health of cities,
the health of counties,

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the health of
state governments,

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federal governments.

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Talking about it, a lot of
it's about taxing and spending.

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It's a lot about debt level.

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I think probably
over the last few years

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coming out of the recession
and the financial crisis

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people have been,
at least if not educated,

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told about debt
levels and pension

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and all that more than
in many, many years.

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From the Shelby
County point of view,

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what is the financial health,
big picture small picture,

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of Shelby County?

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Well, Eric, I'm
pleased to say

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that Shelby County government

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is pretty fiscally sound.

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Our bond rating is
still double A-plus,

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where it's been
for quite a while.

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We are paying our
debt down progressively.

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Our debt about four years ago
was sitting at 1.8 billion,

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it's now at about 1.4 billion.

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It'll be under 1.4 by the
end of this fiscal year.

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So we're progressively
paying our debt down.

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Most of our debt is
attributed, in fact

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1.1 of that 1.4.
billion is attributed

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to school construction
over the years.

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But we're progressively
paying that debt down.

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We're living within our means.

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Our pension funding is being
fully funded on an annual basis.

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We've taken some hits from the
market the last few years but

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we're rebounding from that
and we're sitting at

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about 88% funded
at this point.

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Bill, I think I told you
the other day 82%

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so I need to
correct that.

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But we're sitting at about 88%
and continuing to pay that down.

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So we are
financially in good shape.

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We're living within our budget
which we're required to do

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and I'm pleased
with where we are.

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We're starting to
see some indications

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of a turn in
the economy.

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We're still facing across Shelby
County which certainly impacts

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the financial
welfare of the county.

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We're still facing higher
than normal unemployment.

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A number of people
below the poverty line

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is still a
concern to us,

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which are things
that impact the budget.

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But from a standpoint of our
financial stability

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in county government
we're in good shape.

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We haven't gotten any
letters from the comptroller.

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[laughing]

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We'll get to that.

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You touched on a couple things.

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I want to come back to
one thing that you said,

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real quickly.

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The county debt
is at 1.4 billion,

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it'll be under a billion
by the end of this--

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No, the under 1.4 billion.

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It'll be under 1.4.

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By the end of this fiscal year.

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The County was able...

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I think we had a couple of
County Commissioners on

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in the last few months,

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talked about
having refinanced

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and managed
the debt well

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in a historically low
interest rate environment.

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The county was
able to refinance,

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I guess you would
say, responsibly.

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Yes.

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Well, we're constantly looking
for ways to refinance debt.

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That's not a
uncommon occurrence.

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You'll see that take place
sometimes as often as annually

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as those opportunities
present themselves.

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You talked about
the pension being

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88, 86% funded.

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What about health benefits?

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I mean, for retired workers and
then when you look out that's

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another one that gets a lot
of attention with cities and

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state-level, federal-level--

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Certainly the cost of health

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care benefits is
increasing annually.

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Our benefits are
increasing annually.

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We have got to, as a
county government,

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look very hard at
those areas and we are.

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Last year, Eric, we conducted a
rather thorough efficiency study

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of county government and
projecting out in the years

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ahead and we're following some
of the recommendations that have

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been made that are focusing
on the health benefits plan.

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There's some adjustments to our
health benefits plan this year.

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There'll be some other
adjustments moving forward as we

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see opportunities to really
move the needle in that area.

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Same with our pension fund.

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Our benefits package
is extremely expensive.

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Right now it's
about 42% of salary.

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My church is about
15% of salary

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so that gives you a little
bit of comparison.

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We have got to, we've got to
take into consideration

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that going forward
there'll have to be some
adjustments

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made to keep us in that
sound financial condition

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that we're in.

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Bill.

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You talked about
this earlier, Mayor,

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about the switch to
defined contributions.

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How do you see that unfolding?

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That particular decision?

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Well, as I think you're aware,
we really can't make any changes

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to our system that
affect current employees.

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There's some minor
adjustments that can be made

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but our current employees, we
have a contract with them.

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I think it's
solid as a contract.

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So the changes that we make
will be really going forward

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with future employment.

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And we're certainly looking at a
array of different approaches

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to the contribution
scheme

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and I think we're
going to have to

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bring county
government in line

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with more what's taking
place in the private sector.

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To go into a little
bit of background,

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at one time county government
salaries were considered

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to be rather low and county
government compensated

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by having a generous
benefits package.

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Well over the years we've
seen our salary come up

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to a very
competitive level

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but we kept our benefits
package at a high level.

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So it's a little bit out
of balance with reality.

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So we're going to have to
adjust our benefits package

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so that we're not
consuming 42%.

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And this, you know,
for folks listening,

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I mean, you know,
pensions, defined benefit.

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It's not the sexiest issue but
those are the issues

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that were critical
to sinking Detroit.

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The state of Illinois
is in huge trouble.

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I read a thing recently,
the military benefits,

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health care, pensions, to
military folks is skyrocketing

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and the military is very
worried about how they're
going to actually,

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you know, bullets
and ships and planes

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when they're spending so
much on benefits.

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And, again, it goes back to
that same thing you describe.

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Historically, public sector
jobs were low paid

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so they had
high benefits.

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Now it's relatively high paid...

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Not really high paid
but relatively high pay,

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relatively high benefits.

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So it's a sea change nationally.

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It's the very foundation
of the problems

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that you're seeing in
municipal government.

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I worked for the Federal
Government several years ago,

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back in the '70s and '80s and
federal government back then

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started making some adjustments
to the benefits packages.

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It has served them well.

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But the reality of it is
that if we're going

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to stay solid
and solvent

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we're going to have
to make some adjustments

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going forward.

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Also on the issue
of funding, I mean,

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there's a sea change in the
funding of education

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that's been going
on and evolving

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and we've talked
a lot about the schools

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on this show, the papers.

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You've obviously been right
in the middle of all that.

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I had someone who is very
close to these issues

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who we were talking
about having you on

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and talking about the fact
that county government

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will now be the source
of funding not just

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for all the schools
within the county

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including the municipal
school districts.

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And I said wait,

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I thought they had separate
school districts out there.

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I thought they raised
their taxes out there.

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I thought they were funding
their own schools

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in Germantown
and Collierville

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but the funding still runs
through county government.

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It is and everybody who
pays a property tax

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is paying for education
in Shelby County.

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Out of our property tax of four
dollars and whatever 38 cents

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about $1.91 of it
goes to education.

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And every property owner
in Shelby County

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if you live in Bartlett or
Memphis or Collierville,

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you're paying that.

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So, we have an obligation
to all the school systems.

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Now, granted, the municipal
school districts also

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have a huge
responsibility.

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Funding for education comes
through a multitude of sources.

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It comes through
some federal sources,

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state sources, city, county.

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The school budget, the
total school budget,

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is in excess of $1 billion.

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The County's contribution
to that is $382 million.

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So you can see that
there's a lot of money

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coming from a lot of
different directions

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to fill that balance
between 382 and 1.4.

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But that county, for the county
that 382 is the biggest number.

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It's the biggest single number.

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And that 382 goes from
everywhere

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from Collierville to what will
be the Legacy County School
System

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which is mostly the
Memphis schools, all that.

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The money will be distributed
across the County Schools,

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the Municipal Schools
and the County Schools,

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based on the ADA,

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average daily
attendance, formula.

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How many students you
have in your school today,

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you get X-number of
dollars per student.

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So, as you have noticed
in the news last few days,

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there was a great deal of
competition that's taking place

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now among the
schools to get students.

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So it's going to be
interesting to see over
the next few months

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how this kinda levels out
among the municipalities.

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And then, about the
first of the school year,

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we'll start making payments
to those schools systems

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based upon their average
daily attendance.

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Next August--

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Actually this year,

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in August.

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And also this brings up kinda
the balance that you have

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to strike in making the budget
proposal when you get some idea

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of how much this is going to
cost each of these suburban

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municipalities for their school
system because it will involve

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some mix of county funding
on the formula you mentioned,

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the ADA formula.

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But there will also be
some money from those

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local governments, from
Lakeland and Arlington.

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Absolutely.

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Money from the
local governments.

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Governments have
some latitude there

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but certainly their sales tax
goes to education as well.

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So property tax
goes to education,

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sales tax goes to education.

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All of the municipalities last
year voted to increase

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their sales tax in
their communities

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and it's my understanding
that their intent was

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to devote 100% of
that to education.

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But they have some
latitude there

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so within the municipalities

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they're going to be funding
education with sales tax

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and with property tax
from their residence

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and then property
tax revenue

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that comes from the
county property tax

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as well.

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And then, of course, what
you get through the

10:40.764 --> 10:45.764
state BEP formula and
then federal grants.

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So it's a lot of money coming
from different directions.

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Do you anticipate at this early
stage in the discussions

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that those suburban
school systems

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are going
to come to you

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or to their respective
governments

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for the
startup cost?

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Well, we've had
some discussions

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with the municipalities
about that.

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We'll continue to have some
discussion about it but we don't

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have a lot of flexibility
in county government

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for advancing money.

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We're on a pretty tight
schedule ourselves

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based upon when the
revenue starts coming in

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from the property tax.

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We're going to look on where
we can help the municipalities.

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It's been my objective
from the very beginning

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that it our responsibility
in county government

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to see what we
can do to help.

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What are those startup costs?

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I mean, is that like they've
hired superintendents

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and they've got some
planning that's got to happen?

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Many of these funding
sources won't start hitting

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the municipalities
until this summer

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but yet they're
wrapping up now.

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They want to start
signing contracts for teachers,

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they've gotta start
ordering supplies.

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The nuts and bolts.

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A great deal of that that's got
to happen between now and July.

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You think about it,
they've got, really,

11:59.064 --> 12:02.064
the municipality's got
about six months to ramp up

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and be ready to go.

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They've got to be ready to go
by about the first of July,

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really.

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You think all of
them will be ready?

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I'll put you on the spot.

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Well I hope they are.

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We're going to certainly
work with those

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that may be struggling
a little bit.

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So, it's my objective to help
them in any way that we can

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in county government
to hit that deadline.

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I've asked a lot of people this,
as we've gotten the shape

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of the future school
systems in Shelby County,

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I mean there's so
much uncertainty

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for what two, three years?

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We now have this
kind of re--

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We consolidated.

12:31.598 --> 12:33.598
Now we're deconsolidating
into a very different shape

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then we were
in before.

12:34.964 --> 12:36.964
Separate school
systems in the suburbs,

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a really a
reshaped, in many ways,

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County School
System that--

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- A sea change.

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It's a sea change.

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And then all so much education
reform going nationally,

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going on from the
state level and so on.

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Are you happy, you're one of
the few people who sits over,

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you know, the whole of this.

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You are, as we were
talking about before the show,

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people sometimes forget

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that you're not just
mayor of the suburbs,

12:57.498 --> 12:59.464
you're Mayor of Shelby County
including Memphis,

12:59.464 --> 13:01.531
including
Collierville, Millington,

13:01.531 --> 13:03.098
everything.

13:03.098 --> 13:05.498
Are you happy with the way
that this all shook out?

13:05.498 --> 13:08.364
That the shape of the
school system is right,

13:08.364 --> 13:09.831
appropriate?

13:09.831 --> 13:11.764
I think,
relatively speaking Eric,

13:11.764 --> 13:14.531
when you look at the
chaos and confusion

13:14.531 --> 13:16.198
that we were
facing two years ago

13:16.198 --> 13:17.731
and see where
we are today

13:17.731 --> 13:19.731
it's somewhat
amazing.

13:19.731 --> 13:21.464
We took two large systems

13:21.464 --> 13:22.864
and made a
larger system

13:22.864 --> 13:25.498
which is contrary to
conventional wisdom

13:25.498 --> 13:26.664
and then from the
larger system

13:26.664 --> 13:29.098
you're breaking it up into
six smaller systems

13:29.098 --> 13:31.764
where, again, that
transition is taking place.

13:31.764 --> 13:34.298
So we're still very
much in transition.

13:34.298 --> 13:37.464
I am pleased to see that we're
getting this whole discussion

13:37.464 --> 13:39.464
kind of out of the
political arena

13:39.464 --> 13:41.464
and we're getting
it into the hands

13:41.464 --> 13:43.464
of the professionals
in education.

13:43.464 --> 13:45.798
I've been pleased with the
selections that I've seen for

13:45.798 --> 13:47.798
the superintendents
and the municipalities.

13:47.798 --> 13:51.698
I have talked to a number of the
municipalities and there seems

13:51.698 --> 13:53.798
to be a good working
relationship

13:53.798 --> 13:54.831
that's moving forward

13:54.831 --> 13:58.331
so, relatively speaking,
we're in a heck of a lot

13:58.331 --> 14:00.764
better shape than we
could have been.

14:00.764 --> 14:03.564
Do you see there being
coordination work between

14:03.564 --> 14:05.664
the County School
System, Dorsey Hopson,

14:05.664 --> 14:07.731
again the legacy, I don't
know...

14:07.731 --> 14:10.164
people call it the
City School System

14:10.164 --> 14:11.931
it's the County
School System

14:11.931 --> 14:13.998
and some of the
suburban schools?

14:13.998 --> 14:17.164
I've been very pleased
with what I have seen

14:17.164 --> 14:19.598
with Superintendent Hopson
and his school board.

14:19.598 --> 14:23.064
They seem to be, once again,
professionals that are looking

14:23.064 --> 14:26.198
at this issue and every
indication seem to be

14:26.198 --> 14:28.298
that they're working
with the municipalities

14:28.298 --> 14:29.031
and I'm seeing
that as well.

14:29.031 --> 14:31.031
So, the professionals know
what they've got to do

14:31.031 --> 14:32.931
and they know the challenge
that's ahead of them.

14:32.931 --> 14:34.898
So we're moving in
the right direction.

14:34.898 --> 14:36.731
Goodness, it's still
going to be a tough slog.

14:36.731 --> 14:38.898
I think this transition's going
to take a few years

14:38.898 --> 14:41.031
before we really
get settled.

14:41.031 --> 14:42.831
You talked to
Hamilton County.

14:42.831 --> 14:45.098
They did it ten years ago and
they're still transitioning.

14:45.098 --> 14:47.264
Charlotte Mecklenburg's
still transitioning,

14:47.264 --> 14:48.598
Davidson County.

14:48.598 --> 14:50.864
So there's still some
struggles ahead of us

14:50.864 --> 14:54.564
but relatively speaking we're
in pretty good shape.

14:54.564 --> 14:55.498
Bill.

14:55.498 --> 14:57.498
Let's switch gears here

14:57.498 --> 15:00.431
and talk about the
tourism development zone

15:00.431 --> 15:02.364
that the city wants.

15:02.364 --> 15:06.464
That the City of Memphis
wants to finance

15:06.464 --> 15:09.731
fairgrounds
redevelopment.

15:09.731 --> 15:13.264
It seems as if we have a
difference of opinion there

15:13.264 --> 15:15.698
about whether harnessing
the sales tax revenue,

15:15.698 --> 15:20.031
incremental sales tax revenue,
from that zone would affect

15:20.031 --> 15:23.898
education, public education
funding in Shelby County or not.

15:23.898 --> 15:28.531
The city seems to be saying
that it will not affect that.

15:28.531 --> 15:31.364
What is your belief
about how that works?

15:31.364 --> 15:35.464
Well, first of all, this is
where county government

15:35.464 --> 15:37.464
and city government
have gotta be very careful

15:37.464 --> 15:40.364
that we don't step on
each other's toes.

15:40.364 --> 15:42.998
What Memphis hopes to
do with that property

15:42.998 --> 15:44.764
is really a
Memphis decision.

15:44.764 --> 15:47.898
Where the county has an
interest is sales tax

15:47.898 --> 15:49.964
and as we talked
about earlier

15:49.964 --> 15:54.598
there's a portion of sales
tax that goes to education.

15:54.598 --> 15:58.331
I want to ensure that
education in no way is going

15:58.331 --> 16:01.931
to be adversely impacted
financially by this decision.

16:01.931 --> 16:04.364
And there are
differing opinions about that.

16:04.364 --> 16:09.864
In fact, I've got a meeting
today with Robert Lipscomb,

16:09.864 --> 16:12.064
the city and several
people from the city

16:12.064 --> 16:14.064
and several folks
from the county

16:14.064 --> 16:16.064
to see if we can
work through this.

16:16.064 --> 16:18.331
At the County Commission
this past week

16:18.331 --> 16:20.331
just before the County
Commission meeting

16:20.331 --> 16:21.331
Mayor Wharton
and I had talked

16:21.331 --> 16:23.631
and Mayor Wharton
expressed his desire

16:23.631 --> 16:26.764
to not in any way take
money away from education.

16:26.764 --> 16:28.864
So he and I agree on
that particular point.

16:28.864 --> 16:31.564
I think what we have to do is
just take a look at the law

16:31.564 --> 16:33.564
and get some
understanding of the law

16:33.564 --> 16:36.098
and appreciation
for that particular fact

16:36.098 --> 16:39.064
and if we can be
assured that there'll be

16:39.064 --> 16:43.031
no financial adverse
impact on education

16:43.031 --> 16:45.031
then certainly
I'll be supportive

16:45.031 --> 16:46.264
of what the city
wants to do.

16:46.264 --> 16:48.264
And hopefully we can
work through that.

16:48.264 --> 16:50.864
I promised the County Commission
I'd try to get back with them

16:50.864 --> 16:52.398
by their next meeting

16:52.398 --> 16:55.164
which will be a week
from this coming Monday

16:55.164 --> 16:57.031
and see if we were able

16:57.031 --> 16:59.298
to get that particular
question answered.

16:59.298 --> 17:01.364
That seems to be the
issue that resonates

17:01.364 --> 17:03.364
with the County
Commission as well.

17:03.364 --> 17:06.531
So I think we're all interested
in giving the City of Memphis

17:06.531 --> 17:10.098
the discretion that they need to
develop their property

17:10.098 --> 17:13.698
as long as it doesn't
impact in any way

17:13.698 --> 17:15.698
the financing
that we need

17:15.698 --> 17:16.698
for schools.

17:16.698 --> 17:19.698
And to just explain,
this involves a formula

17:19.698 --> 17:22.898
for the distribution of the
sales tax revenue

17:22.898 --> 17:26.064
within a zone of about
three square miles.

17:26.064 --> 17:27.064
That's correct.

17:27.064 --> 17:30.864
And there is some kind of factor
that's in there

17:30.864 --> 17:33.664
that is kind of
at the heart

17:33.664 --> 17:36.464
of whether this happens
or it doesn't.

17:36.464 --> 17:37.464
Yes.

17:37.464 --> 17:40.098
There's a baseline that's
established that ensure

17:40.098 --> 17:43.364
education will still get tax
funding out of that district.

17:43.364 --> 17:49.931
The area for discussion is
the increase in tax revenue,

17:49.931 --> 17:53.364
sales tax revenue, from the
improvements in the TDZ

17:53.364 --> 17:55.498
that are in question.

17:55.498 --> 17:58.331
If the TDZ is going to
generate more sales tax

17:58.331 --> 18:00.331
then we want to make
sure that that formula

18:00.331 --> 18:01.898
for ensuring
that education

18:01.898 --> 18:03.364
gets its share of
the sales tax

18:03.364 --> 18:04.764
is still in place.

18:04.764 --> 18:07.498
And there seems to be
some ambiguity in the law

18:07.498 --> 18:08.764
in that
particular place.

18:08.764 --> 18:11.564
Do you have to go to the
State for clarification on that?

18:11.564 --> 18:12.564
Not really.

18:12.564 --> 18:14.764
Well, yeah it is because
the State's the one

18:14.764 --> 18:16.498
that actually
approves the TDZ.

18:16.498 --> 18:17.764
It's not like
the local level.

18:17.764 --> 18:19.764
A lot of that money
goes to the State

18:19.764 --> 18:20.764
and then it
comes back

18:20.764 --> 18:22.764
and it's distributed
throughout.

18:22.764 --> 18:25.531
TDZ allows the local government
to intercept some of that money,

18:25.531 --> 18:27.364
in my layman's terms, right?

18:27.364 --> 18:28.364
That's correct.

18:28.364 --> 18:31.364
As long as it's redeveloped to
improve an area

18:31.364 --> 18:33.364
that otherwise
isn't functioning.

18:33.364 --> 18:36.131
I think what we're
really striving to do now,

18:36.131 --> 18:41.264
what the City's striving to do,
is to be able to go to Nashville

18:41.264 --> 18:44.531
with some degree of unanimity
on this particular project.

18:44.531 --> 18:49.298
It makes it a lot easier for the
State to make a decision

18:49.298 --> 18:52.598
if they see county government
and city government agreeing.

18:52.598 --> 18:55.364
If there's disagreement that
makes it more difficult for them

18:55.364 --> 18:58.598
so we're trying to get our
disagreements worked out

18:58.598 --> 19:00.798
at the local level before
we take it forward.

19:00.798 --> 19:03.698
TDZ on some high
level is, you know,

19:03.698 --> 19:07.464
we talk about changes in
sales tax to redevelop an area,

19:07.464 --> 19:09.131
similar concept
to a PILOT

19:09.131 --> 19:11.131
in the sense that a
PILOT is about industry

19:11.131 --> 19:13.131
or companies that
come in or that stay.

19:13.131 --> 19:16.531
A lot of criticism
of PILOTs, I mean,

19:16.531 --> 19:19.164
from some people who say
that's just a big tax break

19:19.164 --> 19:20.298
for corporations

19:20.298 --> 19:22.298
other people who say
look you've got a,

19:22.298 --> 19:24.464
you know, that's one of
our weapons to compete

19:24.464 --> 19:26.198
to keep
companies in--

19:26.198 --> 19:27.198
I like to say tool.

19:27.198 --> 19:28.198
Tool, excuse me.

19:28.198 --> 19:29.198
[laughing]

19:29.198 --> 19:30.198
Well, yeah.

19:30.198 --> 19:32.198
I think some of the
economic development folks

19:32.198 --> 19:34.198
that we've had on in
the private sector

19:34.198 --> 19:36.198
have maybe referenced
them as weapons.

19:36.198 --> 19:37.198
[laughing]

19:37.198 --> 19:38.198
But yes, in the
public sector

19:38.198 --> 19:39.198
you might want
to say tool.

19:39.198 --> 19:41.198
So, that debate, I
mean what is it,

19:41.198 --> 19:43.198
some $100 million of
PILOTs in the last number,

19:43.198 --> 19:45.531
I mean, Shelby County Memphis
uses the PILOTs aggressively.

19:45.531 --> 19:47.531
Electrolux, which
has been open,

19:47.531 --> 19:49.531
has a thousand people or
so working there.

19:49.531 --> 19:51.531
Mitsubishi, all kinds,

19:51.531 --> 19:52.931
Nike just did a
big expansion,

19:52.931 --> 19:54.931
I mean all kinds of
local companies

19:54.931 --> 19:57.098
have either been
retained or expanded.

19:57.098 --> 19:59.198
Smuckers jelly, peanut
butter is about to do

19:59.198 --> 20:00.498
a big, just got
a big PILOT.

20:00.498 --> 20:02.531
How do you feel
about PILOTs?

20:02.531 --> 20:04.598
Do you feel like
they're give-aways?

20:04.598 --> 20:07.698
Do you wish that you had a
different tool than them?

20:07.698 --> 20:09.698
I do not think that
it's a big give-away.

20:09.698 --> 20:11.931
We're always very
careful with PILOTs

20:11.931 --> 20:13.931
to look at the
benefit/cost ratio.

20:13.931 --> 20:18.764
And we never approve a PILOT
where the benefit/cost ratio

20:18.764 --> 20:21.464
is less than one to one

20:21.464 --> 20:23.698
and typically
it's going to be

20:23.698 --> 20:25.464
about one to 1.5

20:25.464 --> 20:27.564
which mean that
for every dollar abated,

20:27.564 --> 20:29.864
we want $1.50 return

20:29.864 --> 20:32.698
though capital investment,
through salaries, wages,

20:32.698 --> 20:36.431
things of that nature.

20:36.431 --> 20:41.664
So PILOTs do not give
away tax money

20:41.664 --> 20:43.798
and that's one term
that I hear so often.

20:43.798 --> 20:49.398
We give a dollar relief on taxes
for a dollar plus return

20:49.398 --> 20:51.198
on that tax abatement.

20:51.198 --> 20:52.564
And it's not as, I mean...

20:52.564 --> 20:54.698
one clarification I think the
media does a terrible job,

20:54.698 --> 20:57.598
we try, but I think
generally there's a lot

20:57.598 --> 21:01.364
of confusion put out there
about PILOTs in the media

21:01.364 --> 21:03.431
that most of the companies are
still paying property taxes.

21:03.431 --> 21:05.431
They're still
paying property taxes.

21:05.431 --> 21:06.964
It's just they're paying a lower
rate because they're investing.

21:06.964 --> 21:08.131
Well they're paying
the property tax,

21:08.131 --> 21:10.664
they're hiring more people
and they're making capital

21:10.664 --> 21:13.731
investment and construction
which benefits small business.

21:13.731 --> 21:16.431
Now, the second
part of your question,

21:16.431 --> 21:19.964
we don't have that
many tools in Tennessee.

21:19.964 --> 21:23.264
And in the tri-state area that
we're in we're competing

21:23.264 --> 21:25.898
with two other states that have
different tools than we do.

21:25.898 --> 21:26.998
That's gotta drive you nuts.

21:26.998 --> 21:29.031
I mean, it drives other people
nuts because what happens is

21:29.031 --> 21:31.131
Shelby County gets
compared to Nashville

21:31.131 --> 21:32.664
and everybody says well
Nashville doesn't do PILOTs

21:32.664 --> 21:34.764
so why is Shelby
County doing them?

21:34.764 --> 21:38.598
But Nashville isn't up
against Mississippi,

21:38.598 --> 21:40.598
I mean, 10 feet
from Mississippi

21:40.598 --> 21:43.231
where Mississippi can do
all these creative things.

21:43.231 --> 21:45.231
Base a company there
but, oh, by the way,

21:45.231 --> 21:47.231
you're going to be based
in Desoto County

21:47.231 --> 21:49.764
but you've got the Grizzlies and
the Tigers and a, you know,

21:49.764 --> 21:52.164
an international airport or a
big airport and all the things

21:52.164 --> 21:53.698
that a big city has, right.

21:53.698 --> 21:55.464
Nashville's not up against that.

21:55.464 --> 21:57.431
We were in a meeting
the other day

21:57.431 --> 21:59.298
where just that issue was
being discussed.

21:59.298 --> 22:01.731
We were talking about,
from a regional standpoint,

22:01.731 --> 22:03.364
how can we
complement each other?

22:03.364 --> 22:06.664
We had Mississippi, Arkansas
and Tennessee people there

22:06.664 --> 22:07.998
and that very issue
was discussed

22:07.998 --> 22:10.064
because we are
different from Nashville.

22:10.064 --> 22:11.364
We're different
from Little Rock.

22:11.364 --> 22:13.031
We're different from Louisville.

22:13.031 --> 22:16.164
All cities that
we're often compared to,

22:16.164 --> 22:17.664
we're different than they are.

22:17.664 --> 22:20.064
Chattanooga is in a little bit
of the same situation

22:20.064 --> 22:20.764
that we're in

22:20.764 --> 22:23.031
because they've got Georgia
and Alabama that border them.

22:23.031 --> 22:25.464
But even more so than
Chattanooga

22:25.464 --> 22:27.264
we're different because
our MSA

22:27.264 --> 22:29.831
is so much
more concentrated.

22:29.831 --> 22:34.664
So, we have got to think
of creative ways to work

22:34.664 --> 22:37.264
and we can do
that through PILOTs,

22:37.264 --> 22:41.398
we can do it through other types
of infrastructure incentives.

22:41.398 --> 22:44.631
But we really just don't
have a great deal going for us.

22:44.631 --> 22:47.864
What we do have going for us
is we have a very low cost of

22:47.864 --> 22:49.864
living in a very
urban environment.

22:49.864 --> 22:54.198
People complain about our tax
rate being high but we're still,

22:54.198 --> 22:56.198
from an
affordability standpoint,

22:56.198 --> 22:58.198
we're a very
affordable community

22:58.198 --> 23:00.431
and we have got to look at
those things

23:00.431 --> 23:02.564
that really sell
our community.

23:02.564 --> 23:04.564
And if we can get our
schools in good shape,

23:04.564 --> 23:06.564
if we can have our
property values affordable,

23:06.564 --> 23:08.631
if we can effect crime and
get crime under control...

23:08.631 --> 23:09.631
Right and crime is down.

23:09.631 --> 23:11.631
We have just three
minutes left in the show.

23:11.631 --> 23:13.064
Crime was down 6% last year

23:13.064 --> 23:15.064
in the whole area
of violent crime

23:15.064 --> 23:16.064
and all that.

23:16.064 --> 23:18.164
So your role in
that is what,

23:18.164 --> 23:20.164
contributing to
crime prevention?

23:20.164 --> 23:22.164
Well, again, public safety
is a basic function

23:22.164 --> 23:23.164
of county government.

23:23.164 --> 23:26.131
If you look at the definition
of what county government

23:26.131 --> 23:30.164
is responsible for
covering is education,

23:30.164 --> 23:32.631
safety and health are
the three main pillars.

23:32.631 --> 23:35.064
And id you think what
all falls under that,

23:35.064 --> 23:38.598
education, safety and health, it
covers a pretty broad territory.

23:38.598 --> 23:41.831
It's interesting, I was talking
to one of my counterparts in

23:41.831 --> 23:42.831
another large city

23:42.831 --> 23:46.998
and he was saying how
they had been successful

23:46.998 --> 23:49.098
was the fact that they
sold the fact

23:49.098 --> 23:50.264
that they had
good schools,

23:50.264 --> 23:51.898
they had a low
crime rate

23:51.898 --> 23:53.364
and they had
amenities.

23:53.364 --> 23:54.531
They had
beautiful parks,

23:54.531 --> 23:55.631
they had
greenways,

23:55.631 --> 23:57.631
they had the theater,
they had the ballet,

23:57.631 --> 23:59.498
the community
theater.

23:59.498 --> 24:04.964
If we can build the
infrastructure of amenities

24:04.964 --> 24:05.964
within our
community

24:05.964 --> 24:11.131
that will go a long way toward
really selling our community.

24:11.131 --> 24:13.131
Then we don't have to
rely as much on PILOTs.

24:13.131 --> 24:15.131
Bill, just a
couple minutes left.

24:15.131 --> 24:16.131
All right.

24:16.131 --> 24:18.864
We were at the Electrolux
opening just a while back there

24:18.864 --> 24:20.964
and what happened
when we got that,

24:20.964 --> 24:25.698
when we got Mitsubishi, there
was this euphoria at first

24:25.698 --> 24:29.364
and then there was
kind of this concern

24:29.364 --> 24:32.364
about do we have workers
adequately trained for it.

24:32.364 --> 24:35.098
Where do you think we are in
terms of workforce investment

24:35.098 --> 24:37.764
and getting the right
workers in the right jobs

24:37.764 --> 24:38.798
with those new places?

24:38.798 --> 24:41.331
Well, we're recognizing that
we still have much to do

24:41.331 --> 24:44.464
to prepare our workforce
for the 21st Century.

24:44.464 --> 24:46.598
Our Industrial Readiness
Training Program

24:46.598 --> 24:49.598
where we have gotten some
support from the state

24:49.598 --> 24:52.664
we're using Southwest
Tennessee Community College

24:52.664 --> 24:54.898
to help us work with
some of those people

24:54.898 --> 24:57.564
that need some brushing
up on their basic skills.

24:57.564 --> 25:01.498
It's a concentrated eight-week
program that helps us

25:01.498 --> 25:04.064
get those folks ready for
the market today.

25:04.064 --> 25:06.898
Our challenge, Bill,
is really two fold.

25:06.898 --> 25:08.331
We've got to
continue to invest

25:08.331 --> 25:11.298
in industrial readiness training
programs that very quickly

25:11.298 --> 25:13.831
ramp up the skill set
of our workforce.

25:13.831 --> 25:18.031
But then also it tells us that
your public education system

25:18.031 --> 25:20.164
has really got to
be strengthened

25:20.164 --> 25:21.898
to work on
those core values.

25:21.898 --> 25:23.898
I've got to put in a
plug for one thing

25:23.898 --> 25:25.898
that Superintendent Hopson
is doing right now

25:25.898 --> 25:27.331
with the school
system.

25:27.331 --> 25:31.031
He's identified
elementary reading level

25:31.031 --> 25:33.331
as being a priority of
his administration.

25:33.331 --> 25:35.498
Focusing on grades
one through three,

25:35.498 --> 25:38.664
getting our students
up to skill level.

25:38.664 --> 25:41.864
Right now, about 30%
of our third graders

25:41.864 --> 25:43.898
are reading at
grade level.

25:43.898 --> 25:45.898
We've got to do
better than that.

25:45.898 --> 25:48.631
So we've got to start working
on our public education

25:48.631 --> 25:49.931
to ramp up this workforce

25:49.931 --> 25:52.798
and then in the short
term work on our

25:52.798 --> 25:54.798
industrial readiness
training programs

25:54.798 --> 25:55.964
where we tailor programs

25:55.964 --> 25:57.964
to the needs of the
particular industry.

25:57.964 --> 26:00.664
We have worked with
Electrolux in that area.

26:00.664 --> 26:04.098
We worked with many other
industries in that area

26:04.098 --> 26:06.098
and that'll continue
to be a priority.

26:06.098 --> 26:07.264
And we just 20 seconds left.

26:07.264 --> 26:09.898
You are filed for re-election?

26:09.898 --> 26:11.198
I have drawn my petition.

26:11.198 --> 26:14.164
I intend to run for
re-election this year.

26:14.164 --> 26:15.164
That in?

26:15.164 --> 26:16.164
In August.

26:16.164 --> 26:17.164
In August.

26:17.164 --> 26:18.164
Mhmm.

26:18.164 --> 26:19.164
Primaries coming up.

26:19.164 --> 26:20.164
Ok, thank you for being here.

26:20.164 --> 26:21.164
Thank you, Eric.

26:21.164 --> 26:22.164
Thank you, Bill.

26:22.164 --> 26:23.198
Thank you for joining us.

26:23.198 --> 26:23.998
Join us again next week.

26:23.998 --> 26:25.664
Good night.

26:25.664 --> 26:26.664
♪♪♪