Legislators debating a bill affecting the ownership and operation of county schools within suburban district boundaries keep discussing a 2013 settlement.

The proposed legislation under consideration in the state House and Senate would impact Germantown Elementary, Germantown Middle, Germantown High schools and Lucy Elementary in Millington. However, discussions have focused on the three Germantown Schools — which locals often call the 3Gs.

Bill affecting Germantown namesake schools clears major hurdle

Proponents of the legislation are trying to codify an attorney general’s opinion that states one school district cannot open and operate schools in the boundaries of another district — in this case the 3Gs inside of Germantown but under the direction of Memphis-Shelby County Schools

The settlement at issue came after a series of lawsuits. The Shelby County Board of Commissioners sued Memphis City Schools when the city surrendered its charter in 2011. Along the way, the suburbs asked legislators to allow them to open their own municipal school districts. State lawmakers passed legislation, but Shelby County sued the municipalities. The legislation was ruled unconstitutional as the language singled out Shelby County and didn’t affect the whole state. However, the legal battle wasn’t over. The suburbs went back to Nashville to clean up the legislation allowing the legal creation of the school districts. 

Germantown school enrollment unlikely to grow, study finds

Eventually, Shelby County government, the county commission and the then-Shelby County Schools Board of Education, each of the suburbs and their school boards reached settlements. U.S. Dist. Judge Samuel ‘Hardy’ Mays approved the settlement to resolve the pending lawsuits.

Germantown was the last suburb to reach an agreement because city leaders wanted all eight schools within their boundaries. After negotiations, however, they only received five: Dogwood Elementary, Farmington Elementary, Riverdale School, Houston Middle and Houston High.

During a December 2013 meeting, Germantown’s Board of Mayor and Aldermen agreed to the terms, and current Mayor Mike Palazzolo, an alderman at the time, voted in favor. During that meeting, then-Mayor Sharon Goldsworthy said while the settlement didn’t address all concerns, it was a foundation for the independent school district.

The settlement allowed the city to form the municipal school district and deeded them the property of the five schools. Germantown Elementary, Germantown Middle and Germantown High remained with Shelby County Schools. However, those three schools are not named in the settlement.

“Both sides are in compliance with that agreement,” John Farris, a lobbyist for Germantown, told the House education administration committee recently. “That agreement does not deal with these three schools. Nowhere in that agreement are these three schools mentioned. They’re not part of the agreement. We believe it’s a red herring. The whole situation is governed by state law which does not permit an LEA (Local Education Agency) to operate outside its boundaries.”

The settlement said GMSD was responsible for oversight and management of the five schools, but GMSD is paying $355,453 annually for 12 years until 2025. Those funds are used for other post-employment benefits.

The settlement also said the boundaries of the district should align with the boundaries of the city. That’s part of the issue Palazzolo has raised, based on the attorney general opinion from 2017. 

Tony Thompson, a lobbyist for MSCS, points out the opinion is about opening schools. He believes the settlement governs the current battle in Nashville.

“The Germantown (Local Education Agency) was allowed to be created because of the settlement of the lawsuit around these schools,” Thompson told legislators of the 2013 settlement. “Our question to Germantown was ‘Will you educate the kids that go to all these schools, eight schools in Germantown?’ The answer was no. The settlement agreement which is right here and is active, it doesn’t refer to three schools because it refers to the five. We owned all eight. We gave them five schools, and they own and operate five schools.”

Although the legislation doesn’t discuss how current students will be educated, Palazzolo said he is willing to let current students, who do not live in Germantown, graduate and matriculate out of the 3Gs.

The legislation, if passed, is likely to end up in court. According to the settlement, any disagreement over the terms is to be fought Downtown at the U.S. District Court for the Western District of Tennessee. However, the 3Gs in question are never named or referred to in the agreement.

“Any disputes arising from this matter that was settled are supposed to be taken up at the courthouse — not at the state legislature — and I believe there is an argument to be made that they are in violation of this agreement by pursuing this legislation,” Thompson said.

If future law interfered with the settlement, and certain terms thus determined unlawful, those parts of the agreement would no longer remain in effect but the other parts would stay enforceable.

Goldsworthy, Shelby County Mayor Mark Luttrell, Shelby then-county commission Chairman James Harvey and the members of both boards of education signed the agreement.

Germantown city leaders sought the proposed legislation last year, but it was pulled to give the two school districts an opportunity to work together. Palazzolo met 13 times with MSCS officials, with no resolution. GMSD leaders were never invited to the meetings.

Rep. Mark White, R-Memphis, who represents Germantown, said both MSCS and city leaders asked he move forward with legislation. While the city agrees with White, officials from the county district say otherwise.

“As chair of MSCS, we aren’t pushing for legislation but instead pushing for solutions that no longer require us to constantly have to fight for a permanent home for our students and employees,” said Michelle McKissack, MSCS board chairwoman. “We remain optimistic due to the relationships we have with our surrounding school districts.”