Memphis, Shelby County debate over $1B liability
MEMPHIS, Tenn. (AP) – Memphis and Shelby County officials are debating over who is responsible for paying the dissolved Memphis City Schools system’s $1.1 billion liability for retiree health benefits.
The Memphis Commercial Appeal reports county commissioners said Wednesday the city was the responsible party. Their statement came after Tennessee Attorney General Herbert Slatery III opined Tuesday that the Shelby County government isn’t responsible for the payment unless the county commission votes to take on that responsibility.
Memphis Chief Legal Officer Bruce McMullen countered by saying the city isn’t responsible for the liability of a special school district created by the state. He says the city would fight any lawsuits to pay the money.
Both the city and county had been paying into the Memphis City Schools before it was dissolved.
