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Although the School System’s reserve funds might seem strong, even with proposed reductions in maintenance-of-effort appropriations, administrators are concerned how the money will hold up amid significant financial challenges — namely the state’s third-grade retention law.

The law requires third-graders who score less than “met” or “exceeded expectations” on TN Ready tests to attend a summer reading camp or tutoring program or repeat the grade.

Roughly 60 percent of Tennessee third-graders have failed the reading-proficiency portion of standardized testing and risk being held back a grade, according to the Tennessee Department of Education.

Kim Tucker, elementary supervisor of curriculum and instruction, said 54 percent of the Franklin County School System’s third-graders fit into that category. However, the system is taking steps to ensure that the number is greatly reduced.

Tucker said that 87 percent of Franklin County third-graders are eligible for promotion without being required to attend summer camp. She added that the district is providing free resources and working with all third-grade parents to ensure all students advance to fourth grade by choosing one of the intervention paths being offered.

The options to comply with the law have left School Board members questioning how the system’s budget will be impacted.

Board Member Sara Liechty said that with the county’s Finance Committee and County Commission considering reducing the maintenance-of-effort appropriation, because state law would allow it based on declining student enrollment, it could present challenges.

Liechty said on May 23 after a county Finance Committee budget meeting that reducing the system’s reserve funds from an initial $10.1 million to $7.6 million — a $2.5 million reduction — is a major concern.

She said that the School System is facing a series of potential requirements that could require dipping into the reserve funds more than desired to comply with the law.

Other School Board members said that in addition to complying with the third-grade-retention law, the School System is facing other potential major expenditures, such as repairing a roof at Huntland School, which could greatly dip into reserve funds.

Liechty said that, depending on how the students fair in passing the exam requirements, significant shifts in teaching staffs might be required to accommodate them and comply with pupil-teacher ratios because of the students being held back.

Tucker, however, said she is optimistic that most of the third-graders will be promoted into the fourth grade.

She said this year’s third-graders were in kindergarten when the COVID-19 pandemic hit, effectively removing them from a normal classroom environment and putting them at a great learning disadvantage. She added that this is the first year where they have spent most of their time in a classroom setting, and many are struggling academically to catch up.

“Those kindergarten children also had no formal education when they were in the first grade, and they were spotty at best,” Tucker said. “In the second grade, they were still spotty. Now, this is the first time they’ve had a pretty good dose of school, but it’s been spotty for them over the course of their entire time in school.”

The Department of Education released the 2023 Tennessee Comprehensive Assessment Program averages last week for statewide third-grade English language and arts, and Franklin County is listed at third from the bottom in proficiency among 11 school systems in the Southern Middle Tennessee area.

The statistics show that 35 percent of Franklin County’s third-graders are proficient in reading.

Moore County’s students were the most proficient in the area at 50 percent, followed by Fayetteville City at 44.44 percent; Lincoln County, 43.59 percent; Tullahoma, 41.79 percent; Coffee County, 39.48 percent; Manchester City, 39.10 percent; Grundy County, 39.09 percent; Bedford County, 36.17 percent; Franklin County, 35 percent; Marion County, 34.39 percent; and Marshall County, 33.69 percent.

In the exceeds-expectations category, Moore County was also the leader at 15.30 percent, followed by Lincoln County, 12.82 percent; Manchester City, 11.17; Fayetteville City, 11.11 percent; Coffee County, 11.07 percent; Bedford County, 9.89 percent; Franklin County, 8.95 percent; Tullahoma, 8.59 percent; Grundy County, 7.27 percent; Marion County, 6.72 percent; and Marshall County, 6.27 percent.

With the meets-expectations bracket, Moore County was again the leader at 34.62 percent, followed by Fayetteville City, 33.33 percent; Tullahoma, 33.2 percent; Grundy County, 31.82 percent; Lincoln County, 30.77 percent; Coffee County, 28.41 percent; Manchester City, 27.93 percent; Marion County, 27.67 percent; Marshall County, 27.42 percent; Bedford County, 26.28 percent; and Franklin County, 26.05 percent.

In the approaching-expectations category, Marshall County was the leader at 46.48 percent, followed by Marion County, 43.08 percent; Manchester City, 41.34 percent; Lincoln County, 38.45 percent; Tullahoma, 36.72 percent; Coffee County, 36.53 percent; Fayetteville City, 35.8 percent; Franklin County, 35.53 percent; Bedford County, 32.61; Moore County, 32.05 percent; and Grundy County, 31.82 percent.

With the below-expectations bracket, Bedford County had the most students at 31.22 percent followed in order by Franklin County, 29.47 percent; Grundy County, 29.09; Coffee County, 23.99 percent; Marion County, 22.53 percent; Tullahoma, 21.48 percent; Marshall County, 19.84 percent; Fayetteville City, 19.75 percent; Manchester City, 19.55 percent; Lincoln County, 17.95 percent; and Moore County, 17.95 percent.