Orange Beach Schools Exempted, $4.6M Funding Debt Vanishes

John Mullen • June 27, 2023

Orange Beach School System Exonerated: No Debt Owed to State for Funding Discrepancy

Orange Beach City Schools

Orange Beach, Ala. – (OBA) – Mayor Tony Kennon had an instant response when the city school system announced it was no longer on the hook for $4.6 million to meet the 10-mill match requirement in the Alabama foundation program for funding schools.

 

“First, I need to say I told you so,” Kennon said.

 

Superintendent Randy Wilkes started a June 27 news conference by detailing the yearlong negotiations after being told by State Superintendent Dr. Greg Mackey in June of 2022 that Orange Beach was short in the 10-mill match and to please remit $4.6 million.

 

“Today we are pleased to announce that we’ve received a correspondence from (Dr. Mackey) that says the Orange Beach Board of Education does not owe money to the state in any form as a match for the foundation,” Wilkes said. “There will be no future financial requests made to the Orange Beach Board of Education relative to the foundation program.”

 

Kennon has been at the center of the dilemma since the beginning and he and other officials repeatedly said they couldn’t comment on the funding discrepancy while talks with state officials were ongoing. It led to accusations of backroom dealings and not being forthright about the negotiations with citizens.

 

“It means a lot in a way because to be vindicated from those who question our transparency and honesty,” Kennon said. “My cellphone is (removed by editor) if you’d like to call and apologize. Hopefully, this is no longer over our heads and we can move forward.”

 

Orange Beach is the only school system in the state to be upside down in the foundation program. School systems receive a certain amount of funding based on the number of students and other factors. The state calculates how much money the system will receive based on those factors then deducts the equivalent of 10-mills of property taxes from that amount and the system gets what’s left over.

 

Orange Beach qualified for about $7 million but with the high property values in the resort town 10 mills adds up to $11.7 million and Mackey asked the school board to pay the state the difference to meet the 10-mill match obligation.

 

“I am pleased to inform you that Orange Beach City School System will not owe any money to the state in any form as a match for the foundation program in either of the budget years as previously calculated,” Mackey’s letter states. “Moreover, in preparing the FY 2024 budget, the Legislative Fiscal Office made a programmatic change which we expect to be utilized in future budget cycles to correct any over or underpayment issues related to this matter in successive years.”

 

Wilkes’ and other city officials in attendance were noticeably relieved this major funding problem as been resolved.

 

“I think we’ll look back in 10 years and say this was a remarkable day in the history of Orange Beach,” Wilkes said.


Share this article w/ Friends...

 2026 MAAAC Fishing Rodeo
By K. Cooper • October 3, 2026
Orange Beach, Ala. — (OBA) — Registration is now open for the 2026 MAAAC Fall Fishing Rodeo, a multi-species competitive fishing tournament benefiting Orange Beach City Schools. The event welcomes anglers of all ages to compete in several divisions. Competitors can earn awards and prizes, including the title of Master
City of Foley Enacts New Ordinance for Door-to-Door Solicitors
By OBA Staff • October 3, 2026
Foley, Ala. — (OBA) — Foley is implementing new rules to give residents more say over who may knock on their doors for commercial purposes. The Foley City Council approved the first reading of an ordinance governing commercial door-to-door solicitation. The new regulations include permit requirements, background check
Baldwin County Courthouse
By OBA Staff • October 3, 2026
Orange Beach, Ala. — (OBA) — Baldwin County property owners should watch their mailboxes. The Baldwin County Revenue Commission has mailed 2026 property tax notices to property owners across the county. The notices mark the start of the annual tax payment season for residents and businesses throughout the area.
October Is National Seafood Month
By OBA Staff • October 2, 2026
Orange Beach, Ala. — (OBA) — October is a big month along coastal Alabama, not just because the weather finally starts to cool off. The Gulf provides some of the most productive fishing waters in the country, and the communities of Orange Beach, Gulf Shores, and Foley have built much of their identity around what come
Foley Train Museum
By Erica Thomas • October 2, 2026
Foley, Ala. — (OBA) — Foley has major projects planned for 2027 as city leaders work to keep pace with continued growth. A new senior center, aquatic center, and World War II naval aviation museum are among the improvements on the horizon. Mayor Ralph Hellmich outlined the city's plans during his annual State of the
Gulf Coast Heavy Equipment Roadeo
By OBA Staff • October 2, 2026
Foley, Ala. — (OBA) — The city of Foley brought public works professionals together from across the Alabama Gulf Coast to compete in a one-of-a-kind skills competition. The inaugural Gulf Coast Heavy Equipment Roadeo drew 14 teams representing cities, counties, and utility agencies from across the region. Competitors
New Rotary Club Gives Young Professionals a Flexible Path to Service
By OBA Staff • October 1, 2026
Orange Beach, Ala. — (OBA) — A new Rotary club is offering young professionals along the Alabama Gulf Coast a more accessible way to serve their community. Rotary District 6880 launched YoPros, a first-of-its-kind club designed for professionals ages 21 to 45. The Gulf Shores-Orange Beach Rotary Club sponsors the club
Tacky Jacks - Gulf Shores - Orange Beach
By OBA Staff • October 1, 2026
Orange Beach, Ala. — (OBA) — Tacky Jacks is honoring America's 250th anniversary by giving three veterans a free weekend getaway along Alabama's Gulf Coast. The restaurant and bar, with waterfront locations in Gulf Shores, Orange Beach, and Fort Morgan, is calling the promotion the Veterans Red, White & Beach Getaway.
Wharf’s Kids Win Fishing Tournament raised $30,000 for Make-A-Wish Alabama in 2026
By OBA Staff • October 1, 2026
Orange Beach, Ala. — (OBA) — The Wharf’s annual Kids Win Fishing Tournament raised $30,000 for Make-A-Wish Alabama, marking a fundraising record for the event. Young anglers and their families gathered for fishing, activities, and awards. The tournament also helped grant a local Make-A-Wish child's wish.
Perdido Key Fishing Rodeo
By OBA Staff • September 30, 2026
Perdido Key, Fla. — (OBA) — The 3rd Annual Perdido Key Fishing Rodeo is coming to Pensacola this fall, drawing anglers from across the region for a multi-species recreational fishing tournament. The event is scheduled to take place at 13506 Perdido Key Drive in Pensacola, Florida. It features both inshore and offshor
Show More