In the midst of a national recession and an expected tax increase to fund Memphis City Schools, the district expects it will soon be ramping up a $20 million fund drive.
As part of its precommitment to the Bill & Melinda Gates Foundation, MCS has promised to find local support to buttress the nearly $100 million the foundation is considering giving here.
Memphis is one of four school systems in the running for the hundreds of millions the foundation intends to give nationally to improve teacher effectiveness over five to seven years.
Winners will be announced Wednesday.
Other cities in the race are Hillsborough, Fla.; Pittsburgh; and a group of Los Angeles charter schools.
Until last week, Omaha (Neb.) Public Schools was in the running, but it withdrew because district leaders weren't sure they could raise the $65 million required of them. Omaha was seeking $50 million from the foundation.
"When we began the project, we understood our contribution was more in the neighborhood of $28 million," said Luanne Nelson, Omaha district spokeswoman. "Some time during the process, it changed."
Part of the difference, she said, is the tens of millions of dollars the foundation said the district had to hold in a reserve fund to cover unexpected expenses and bridge the costs of the reforms, including higher teacher pay.
Over five years, MCS has agreed to contribute $36.1 million to the work in Memphis and put $32.8 million in a reserve fund to cover unexpected costs and make sure the reforms, including pay incentives to keep quality teachers at least four years, are sustainable.
The foundation would not comment about how much districts must hold in reserve or how the figure is calculated. But representatives spent several weeks in each city after the semifinalists were announced in August, talking to business owners and citizens and driving through neighborhoods, assessing each city's needs.
"With each potential grantee, we have assessed their plans for sustainability and expect them to garner local support. We know that our funding alone will not be enough to implement and sustain these bold and ambitious plans," said Chris Williams, Gates Foundation spokesman.
He said the foundation has been clear with each district about how much funding it is willing to provide.
"It's up to the districts to make sure their plans have the support they need in order to be implemented," he said.
MCS Supt. Kriner Cash was not available to answer specific questions about the proposal or the fund-raising it will entail.
The 72-page document that outlines the MCS plan and budget for the Gates grant calls for donations of $20.2 million from local philanthropists. The district will cover its portion of the cost by streamlining current expenses and increasing efficiency. For instance, it expects to save $2 million by hiring fewer teacher aides, as teachers become better able to manage their classrooms.
The Hyde Family Foundations, a key supporter of public education in Memphis, expects Memphians would rally to support a fund drive to improve teacher quality.
"The potential partnership with the Gates Foundation around teacher effectiveness provides our community with the unprecedented opportunity to transform education and dramatically accelerate student achievement in Memphis," said Teresa Sloyan, the Hyde foundation's executive director. "I'm confident we can all join forces to make this happen in Memphis."
Meanwhile, the Memphis City Council, which delayed a decision about how to fund the city schools until after the mayoral election, is considering several options, including raising taxes 9.7 percent to fund this year's school budget.
The issue is separate from the Gates Foundation proposal, but it could affect fundraising.
"It's going to be on us to make the case, clarifying the objectives and showing the benefit," said MCS school board member Tomeka Hart.
Tom Marino, executive director of The Poplar Foundation, expects a tax increase will not hamper a campaign.
"Even in light of a property tax increase, I will be willing to personally support this effort," said Marino, a member of a committee advising the district on strategy related to the Gates project.
In Omaha, major philanthropists were already committed to a local fundraising effort for education.
"As it is, in any city, you only have so many philanthropic organizations to tap. Our donors are not ATMs," said Nelson, the Omaha schools' spokeswoman.
