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...

Orange Beach Farmers Market
By K. Cooper • October 17, 2026
Orange Beach, Ala. — (OBA) — The Orange Beach Parks & Recreation Department is hosting its Pop-Up Farmers Market — Fall Edition at Waterfront Park. The market features a curated mix of farmers, growers, and value-added vendors in a single waterfront setting. Shoppers can browse and buy locally grown produce and other
Haunted Forest at Graham Creek
By OBA Staff • October 17, 2026
Foley, Ala. — (OBA) — Graham Creek Nature Preserve in Foley is hosting its 2026 Haunted Forest event with the new theme Sinister Circus. The attraction offers a half-mile walk along a darkened wooded trail featuring themed scenes, live scare actors, and theatrical effects. The event is recommended for guests ages 10 a
Foley City Hall
By OBA Staff • October 17, 2026
Foley, Ala. — (OBA) — Nonprofit organizations serving Foley residents could soon pay less for city permits under a new ordinance the Foley City Council approved. The measure establishes a formal process to reduce certain permit fees for qualifying groups. Mayor Ralph Hellmich said the change recognizes the work these o
Gulf State Park Learning Center
By OBA Staff • October 16, 2026
Gulf Shores, Ala. — (OBA) — Gulf State Park is gearing up for a free, Halloween-themed celebration for families of all ages. Science is even more fun when it’s spooky. The Learning Campus at Gulf State Park is hosting Trek or Treat at its facility on State Park Road in Gulf Shores. The day offers hands-on activities, l
Gulf Coast Musicians Medical Fund Fundraiser at the Point
By K. Cooper • October 16, 2026
Perdido Key, Fla. — (OBA) — A Gulf Coast tradition returns for its ninth year, bringing together dozens of musicians to support one of their own. The Gulf Coast Musicians Medical Fund Fundraiser benefits local artists facing unexpected medical expenses. The nonprofit, known as GCMMFund, operates under the motto "So The
Foley Rotary Oyster Run
By OBA Staff • October 16, 2026
Foley, Ala. — (OBA) — The Foley Rotary Club is preparing for one of its most popular annual events. The 33rd Foley Rotary Oyster Run will bring runners and walkers together in downtown Foley for a 5K race. Organizers expect this year's turnout to surpass previous editions. The event also raises money for charities doi
City of Foley Removing Storm Debris
By OBA Staff • October 15, 2026
Foley, Ala. — (OBA) — Hurricane Isaias struck the Gulf Coast, leaving downed trees, damaged signs, and scattered power outages across Foley. The city avoided the heavy destruction that followed Hurricane Sally in 2020. Foley officials said city workers were prepared and responded promptly. The Foley City Council later
Tacky Jacks Gulf Shores
By K. Cooper • October 15, 2026
Gulf Shores, Ala. — (OBA) — The "Fish for Families!" Benefit Fishing Rodeo, returning for its fifth year, gives back to the community in two important ways. The event lets veterans and first responders fish for free. Donated fish from the event go directly to feed people in need in Bon Secour. The tournament is also th
2025 Witches & Werewolves Paddle
By OBA Staff • October 15, 2026
Perdido Key, Fla. — (OBA) — The Perdido Key Area Chamber of Commerce is bringing Halloween to the water this fall with a charity paddle event for kayakers and paddleboarders of all skill levels. The event, Witches & Werewolves – Paddle for a Purpose, welcomes participants in full costume. A portion of proceeds will ben
Road Work Ahead - Stock Image
By OBA Staff • October 14, 2026
Gulf Shores, Ala. — (OBA) — Road maintenance crews are preparing to repair local streets across Gulf Shores. City officials approved funding to repair cracked pavement and smooth neighborhood routes. Drivers should expect short delays in active work zones. Workers will complete paving in phases to keep traffic moving s
Show More