Rutherford County reallocates leftover capital funds to buy McFadden School parcels amid debate over charter funding and priorities

Rutherford County's Budget, Finance and Investment Committee on Jan. 8 approved reallocating leftover capital funds from a Church Street renovation project to buy five parcels adjacent to McFadden School, laying groundwork for renovation and potential enrollment growth.

Michael (Finance Director) told the committee there is approximately $2.04–$2.4 million of leftover bond or project proceeds from Church Street that could be moved into a McFadden project fund. He described the recommended path as reallocating those project funds (referred to in discussion as fund 189) so the school system can place earnest money and complete purchase of the five parcels. "That would cover both this earnest money ... and the purchase of these 5 parcels," he said.

Commissioners pressed staff on several points: whether the funds would need to be shared with the city if drawn from particular funds, whether reallocating these project funds was the best use given other pressing educational facility needs, alternatives such as partnerships with universities, and how many additional students the expansion would accommodate. Kaye (school official) said McFadden currently admits 60 kindergarten students and frequently receives many more applicants; she added the district hopes to expand capacity but that exact seat projections and renovation designs would return to the committee later for justification and appropriation.

Commissioner Gooch asked about grades for charter schools in Rutherford County; Kaye said the two charter schools in question had low grades (she initially said 'D or F' and later corrected to 'two D's'). Several commissioners raised concerns about the county's limited audit capacity over charter spending and the fact that true-up payments to charters are directed by state law.

The committee approved the fund reallocation by roll call; Commissioner Irvin recorded a 'No' vote while other commissioners voted 'Yes.' Staff said the reallocation does not require a budget amendment tonight because the fund is a project fund; any leftover money moved to McFadden would need later justification for renovation and construction costs.