Lee v. Chambers County Board of Education (849 F. Supp. 1474, 1994)

FINDINGS OF FACT AND CONCLUSIONS OF LAW

ALBRITTON, District Judge.

I. Introduction

The current phase of this case began on June 16, 1992, when the Chambers County Board of Education filed a request for approval by the Court of a proposed amendment to its desegregation plan.

The City of Valley and the Valley City Board of Education (sometimes referred to collectively as “Valley”) intervened in this long-standing desegregation case involving the Chambers County Board of Education in order to seek authorization from this court to create and operate a separate city school system within Chambers County, Alabama. See Valley’s Amended Petition to Intervene. The private Plaintiffs, the United States of America and the Chambers County Board of Education opposed the creation and operation of the requested city system for various reasons. See Various responses to Valley’s Amended Petition.

The Lanett City Board of Education, which operates the only other public school system in Chambers County, Alabama, also intervened in this ease in order to resolve certain questions surrounding its attendance boundaries. See Lanett’s Petition to Intervene.

This complex, multi-party litigation raises numerous difficult and interrelated issues. The key and initial issue for resolution is the following:

Whether the establishment and operation of a separate school system in the newly incorporated City of Valley would impede progress towards a school system in Chambers County, Alabama that is free from the vestiges of the County’s former de jure racially dual system.

Other issues relating to this key question, such as the voting rights of persons living within and outside the City of Valley should the City be allowed to operate a separate system, were pretermitted pending the resolution of the central issue.

In addition, the questions originally raised by the Chambers County Board of Education’s June 16,1992 request for approval of its proposed amendment to its desegregation plan have been temporarily resolved by the original parties’ interim agreement, approved by this court on July 1, 1993, which both resolves certain issues and also commits the parties to seek to develop an agreed plan to settle the remaining disputed matters.

Finally, issues involving the Lanett City School District and its appropriate boundaries were addressed during the trial, but because the parties were primarily focusing on the matter of whether formation of a separate Valley City School System should be permitted, and also because the resolution of the issues regarding Lanett City is to some degree dependent upon the determination which the court makes on the Valley question, the parties will be given 30 days from the date of issuance of this decision to submit memoranda setting forth their views, in light of the court’s ruling, on the matters of the boundaries of the Lanett City School District and inter-district transfers to or from schools in Lanett.

The case was tried before the court without a jury on May 5-10, 1993, and June 28-July 2, 1993. Closing arguments were presented on July 7, 1993. During the trial, the court heard testimony from numerous witnesses and admitted and reviewed numerous documents. Based upon the evidence presented at trial, the court makes the following Findings of Fact and Conclusions of Law pursuant to Rule 52 of the Federal Rules of Civil Procedure.

II. Findings of Fact

A. History

Chambers County, Alabama, is located in east central Alabama along the border between Alabama and Georgia. Interstate 85 runs through the southeast quadrant of the County at roughly a forty-five degree angle. On the southeast side of 1-85 lies the City of Valley, Alabama, which was incorporated in 1980. It is bordered by the Chattahoochee River on the east. Lanett, Alabama, lies just north and west of 1-85. It is bordered on the east by the Georgia line, West Point, Georgia and the Chattahoochee River. The remainder of the County is rural with the exception of Lafayette, Alabama, which is the county seat and which is located approximately in the middle of the County. See Valley’s Amended Petition to Intervene.

There have been two separate school systems in Chambers County, Alabama since the turn of the century: a Chambers County school system and a Lanett City school system. 8 Tr. 280 [Riley]; 11 Tr. 2-4 [Bryan].

This school desegregation litigation is an outgrowth of Lee v. Macon County Board of Education, 267 F.Supp. 458 (M.D.Ala.) (three-judge court), aff'd sub nom. Wallace v. United States, 389 U.S. 215, 88 S.Ct. 415, 19 L.Ed.2d 422 (1967). In that case, a three-judge district court ordered Alabama’s local school districts, including Chambers County and Lanett City, to disestablish their racially segregated and discriminatory systems. The districts were ordered to operate under a freedom of choice plan for the 1967-68 school year. Id. at 486-88.

In 1969, the three-judge court found that despite making some progress, Chambers County and Lanett City were still operating racially dual school systems. The court required the development and submission by January 15, 1970 of plans designed to dismantle the dual systems, and it requested the assistance of the U.S. Office of Education for this purpose. Lee v. Macon County Board of Education, No. 604-E (M.D.Ala. Oct. 23, 1969).

Pursuant to those directions, the federally funded desegregation assistance center at Auburn University helped prepare a plan for the Chambers County school system. 10 Tr. 13, 134-35 [Winecoff]; Amended Petition to Intervene on Behalf of Valley City Board of Education and City of Valley, Alabama, filed January 8, 1993, Appendix “H” (hereinafter “1970 Desegregation Plan”).

During the 1969-70 school year, immediately preceding preparation of that plan, there were six all-black schools in the Chambers County System: Chambers County Training School in Lafayette, Cusseta Elementary in Cusseta, Drew Junior High School in what is today the City of Lanett (following annexations in the late 1980’s), Phillips Junior High in the Five Points area, Plainview Elementary in Plainview, and Re-hobeth High School in the Valley area. 1970 Desegregation Plan.

During the 1969-70 school year, two other schools in Chambers County had all-white enrollments (Lafayette-Lanier Elementary and Riverview Elementary in the Valley area), five schools had enrollments more than 90% white (Fairfax Elementary, Huguley Elementary, Shawmut Elementary and Valley High School in the Valley area, and Wa-verly Elementary), and another school was 88% white (Lafayette Elementary in Lafayette). Id.

The racial composition of the Chambers County schools in 1969-70 reflected their racial identities under the dual system. See Lee v. Macon County Board of Education, No. 604-E (M.D.Ala. Feb. 12, 1970) (referring to “517 of the [black students] in formerly white schools.”)

The plan prepared with the assistance of Auburn University and submitted to the three-judge court in Lee v. Macon County by the Chambers County Board of Education divided the school system into four geographic areas, within each of which the grade structures of formerly black and white schools would be altered and/or attendance zones redrawn. 1970 Desegregation Plan.

On February 12, 1970, a terminal type desegregation order was entered by the three-judge court. That order included the standard Singleton provisions. At that time, a plan was developed to desegregate the County schools which included all the schools in the County other than those in the city of Lanett which were the subject of a separate desegregation order and plan. See Court file. Lanett was also the subject of a terminal type desegregation order with its attendance boundaries coterminous with its city limits. 11 Tr. 27 (Bryan).

The three-judge court approved the Auburn University plan based upon its determination that

it appears to this Court that said plan as filed by the Chambers County Board of Education on January 16, 1970, as hereinafter ordered modified and supplemented, when fully implemented effective not later than the commencement of the 1970-71 school year, will completely and effectively disestablish the dual school system based upon race as operated by said board of education.

Lee v. Macon County Board of Education, No. 604-E, Mem. Op. at 2 (M.D.Ala. Feb. 12, 1970).

On June 12, 1970, the Lee v. Macon proceedings concerning individual school districts were transferred to Alabama’s several federal court districts and divisions by the three-judge court pursuant to 28 U.S.C. § 1404(a), see Lee v. Macon County Board of Education, 448 F.2d 746, 748 n. 1 (5th Cir.1971), and different civil action numbers were assigned to the Lanett and Chambers County cases. Docket Entries.

Since 1970, there has been no determination made by this court (or by the predecessor three-judge court in Lee v. Macon County) that the Auburn plan, as implemented, has succeeded in eliminating all vestiges of the former dual system to the extent practicable; the Chambers County Board of Education remains subject to the continuing jurisdiction of this court. See Lee v. Chambers County Board of Education, No. 844-E, Mem.Op. at 2 (M.D.Ala. Feb. 16, 1994). Nor has any such determination been made regarding the Lanett City Board of Education.

Prior to the opening of the 1970-71 school year, the Drew school building in the Chambers County system was destroyed by a tornado and its students were reassigned to Huguley Elementary School and Shawmut Elementary School. 1970 Desegregation Plan.

Subsequent to that time, the Chambers County School Board closed the Plainview, Waverly and Cusseta Elementary Schools and reassigned their students to facilities located in Lafayette. P-Ex 62 [Milner deposition, at 267-68].

In 1980, an area of Chambers County south of the City of Lanett became an incorporated city under Alabama law. It was named the City of Valley. 10 Tr. 202 [Hendrix].

The City of Valley includes four communities which were built originally around West Point Pepperell textile mills. Those four communities are Shawmut, Langdale, Fair-fax and Riverview. See Valley’s Amended Petition to Intervene. Lanett also was built originally around West Point Pepperell mills. Its schools began operation in the early 1890’s. 11 Tr. 4 (Bryan)

In the late 1980’s, the City of Lanett annexed unincorporated areas of the County, north of the City of Valley and Interstate 85, known as West Shawmut and Plant City. 6 Tr. 206 [Riley]. Neither the Lanett City Board of Education nor the Chambers County Board of Education ever requested this court’s approval to change the boundaries of their school districts or attendance zones from those established in 1970 when the desegregation orders were entered. Docket Entries.

One of the major reasons for incorporating the new city of Valley in 1980 had been to enhance the education of the children in Valley, by taking all appropriate steps, up to and including, if necessary, the formation of a school system separate from that of Chambers County. (1 Tr. 150-151, 213-214.) (V-Ex 12, 18.)

State law in Alabama authorizes cities such as Valley to operate a city school system. (§ 16-11-1, et seq., and § 16-13-199, Code of Alabama (1975); V-Ex 4.) In fact, it appears that § 16-13-199 allows the schools of a municipality such as Valley to remain under control of the county board only by agreement between that board and the municipality’s city council expressed in resolutions adopted by and spread upon the minutes of the two authorities. In the absence of such an agreement, this state statute vests control of the schools “of the territory within the municipality” in a city board of education.

A Valley school district was expected to encompass the six schools located within the corporate city limits: Valley High School, Valley Junior High School, Fairfax Elementary, Shawmut Elementary, Lafayette-Lanier (Langdale) Elementary, and Riverview Elementary. (1 Tr. 174.)

No agreement was entered into between Valley and the County Board of Education for the schools located in the City of Valley to remain under control of the county board and on April 10,1989, the Valley City Council adopted a resolution creating the Valley City Board of Education, in accordance with § 16-11-1, et seq., Code of Alabama (1975). (1 Tr. 157.) (V-Ex 6.) Five members, including one black, were appointed to the city school board by the city council. (1 Tr. 153.) A strong motivating factor in attempting to form a separate school system was a perception among Valley citizens that the Chambers County Board of Education had not conducted business as though it were accountable to the citizens of Valley and had ignored requests to improve the schools in Valley. (See V-Ex 67; 1 Tr. 156, 173, 176-177; 2 Tr. 9-149 (Hall) and 3A Tr. 84-150; 3B Tr. 217-308; 4 Tr. 3-144; Vol. V, 4-174 (A. Leak))

After the Valley City Board of Education was appointed, the Board hired a superintendent and a consultant, both of whom attempted to negotiate an agreement with the Chambers County Board of Education through its then superintendent, Jerry Milner, for the transfer of control of the schools in Valley from the county system to the city system. (1 Tr. 157-158, 169, 215-217.) (V-Exs 54, 72.) No agreement was reached.

On April 4,1990, the Valley board requested State Superintendent of Education, Dr. Wayne Teague, to arbitrate the transfer pursuant to § 16-4-8, Code of Alabama (1975). Dr. Teague directed the Chambers County board to negotiate for the transfer of control of the schools in Valley with representatives of the Valley City Board of Education. (Appendix E, Amended Petition to Intervene.) (V-Ex 54.)

When an agreement still was not reached, Dr. Teague issued a letter on May 9, 1990, detailing the manner in which Chambers County would transfer control of buildings, grounds, equipment, textbooks, materials, and supplies, and confirming Valley’s authority over the students within the city limits. Chambers County was advised to allow the students from areas outside the city who had traditionally attended Valley schools to continue to do so, with Valley’s agreement. Likewise, the reassignment of personnel, to an extent dependent on the distribution of students, was addressed, as were the subjects of transportation and the potential transfer of buses. Dr. Teague pointed out that he had no authority to decide that the Valley system had no right to exist under state law, and that whether the system would exist under federal law was beyond his control. He specifically made this resolution contingent upon any required Section 5 pre-clearance by the U.S. Department of Justice and upon modification of the existing terminal desegregation order of this court. (V-Ex 54.)

On May 17, 1990, the Valley City Board of Education filed in this action a pleading entitled Suggestion of Formation of Municipal School System and Petition for Clarification, requesting this Court’s authorization to operate a school system separate from that of Chambers County and to enroll, in that separate system, pupils residing outside the city limits of the Valley municipality.

On June 11, 1990, plaintiffs moved for a preliminary injunction to enjoin the formation of a separate City of Valley school system. Docket Entries.

On October 12,1990, pursuant to Section 5 of the Voting Rights Act of 1965, 42 U.S.C. § 1973c, the Attorney General of the United States interposed an objection to the establishment of a separate school system in Valley, Alabama. Thereafter, the City of Valley sought reconsideration, which was denied on May 31, 1991. Order of July 11, 1991.

Because the formation and operation of a separate school system had been twice denied pre-clearance by the Department of Justice, the City of Valley’s 1990 filing was dismissed until such time as pre-clearance had been obtained and plaintiffs’ motion for a preliminary injunction was denied as moot. Order of July 11, 1991.

In August of 1991, Leonard Riley became the Superintendent of the Chambers County Board of Education, having been appointed to fill the unexpired term of the elected Superintendent. 6 Tr. 162-163 (Riley). Riley, who lives in Valley, had served as Principal of Valley High School from 1979 until that time. He earned a B.S. degree from Auburn University, a Masters in Education from Montevallo University, and an AA certification in education administration from Auburn. 6 Tr. 153, 154. While serving as Principal of Valley High School, Riley shared the concerns of other Valley citizens over financial and perceived management difficulties in the school system and supported the creation of a separate Valley system. 7 Tr. 148-49, 8 Tr. 3-7, 149-53 (Riley). He has changed his mind, even though his children attend Valley schools and his wife is employed at Valley High School, and testified that after an analysis of the effect of a split-off on the children remaining in the county system he became convinced that those children would suffer educationally. 7 Tr. 29, 128. He impressed the court as a highly dedicated, experienced, talented and thoroughly competent educator.

When Riley took over, he found a system mired in debt, one which projected a budget shortfall by the end of the fiscal year (September 30, 1991) and one which had all but exhausted its borrowing capacity. 6 Tr. 163— 164,176-177 (Riley). Riley at his first Board meeting suggested, and the Board approved, certain changes designed to save money and put the system on better financial ground. 6 Tr. 165-167 (Riley). Among these changes were the closing of Chambers County High leaving that facility K-8 and transferring those students to Lafayette High, transferring the Five Points High students to Lafayette High, in conjunction with the closing of Five Points Elementary and transferring those students (K-8) to the Five Points High facility, and closing Riverview Elementary and splitting those students between Lang-dale and Fairfax.

On August 12, 1991, the Chambers County School Board filed a Petition for Emergency Relief seeking approval of its plan to close certain facilities and to make improvements and repairs at other schools. According to the Petition, these changes were necessitated by serious financial difficulties being experienced by the school system.

Following negotiations among the private plaintiffs, the United States and the Chambers County School Board, the court on September 16, 1991, entered an Agreed Order approving the school closures, grade consolidations and student reassignments proposed by the district “as an interim plan for the 1991-92 school year.” That Order also required the Chambers County School Board to “conduct a long-range study of its system” and to “review the attendance zones of all of its schools and make recommendations to desegregate those schools which continue to exist as disproportionately black schools.” Agreed Order of September 16, 1991.

On February 14, 1992, the City of Valley and the Valley City Board of Education sought to intervene in this case because of concern that the parties’ efforts to develop a new desegregation plan for the Chambers County School System would adversely affect Valley’s interest in establishing a separate school system. Valley asserted that it was seeking a second reconsideration of the denial of pre-clearance. Motion to Intervene, filed February 14, 1992.

The Chambers County School Board employed consultants from the University of Alabama to make the long-range study required by the 1991 Agreed Order. The consultants reported, as County officials were aware, that total enrollment within the Chambers County School System had been steadily declining in the last several years and was expected to continue to decline. 7 Tr. 125-26; 8 Tr. 207 [Riley]; V-Ex 75-A at 30; id., Appendix “B” at 169; P-Ex 35, at 1-4 (enrollment declining for at least a decade).

Based upon the report of these consultants (the “Bishop-Cleveland” or “Bishop-Lowe” study), on June 16, 1992 the Board filed a motion requesting that this court approve additional school closings, consolidations, and modifications to student assignment to be completed in several phases. Chambers County Board of Education’s Petition to Amend Desegregation Order, filed June 16, 1992.

In July of 1992, plaintiffs and the United States submitted responses to this Motion indicating concern about the Board’s proposals. Docket Entries.

Because of the need for the parties to conduct discovery in preparation for a hearing concerning the Board’s proposals, it was not possible to present the issues raised by the motion and responses to the court for resolution in time to permit implementation in the 1992-93 school year of any changes that might be approved.

On July 27, 1992, pursuant to Section 5 of the Voting Rights Act, the Attorney General granted pre-clearance for the establishment of a Valley City School System. This was done after Valley responded to earlier Justice Department objections by annexing nearby areas of black population concentration, thereby increasing its black population from 17 percent to 27 percent, and by enlarging its city council from five to seven members and changing its method of election from an at-large to a single-member district system. V-Ex 7.

On January 8, 1993, the City of Valley, Alabama and the Valley City Board of Education (“Valley”) filed an Amended Petition to Intervene in this litigation, again seeking the court’s approval for the operation of a separate Valley school system that would encompass the current attendance areas under the 1970 desegregation plan for the schools remaining within its municipal boundaries after the 1991 closing of Riverview Elementary, i.e., Shawmut Elementary, Fair-fax Elementary, Langdale Elementary, Valley Junior High School and Valley High School. Amended Petition to Intervene on Behalf of Valley City Board of Education and City of Valley, Alabama, filed January 8, 1993.

The current attendance zones for most of the schools Valley wishes to operate as part of its school system, (Valley High School, Valley Junior High School, Shawmut Elementary, and Fairfax Elementary) are not coterminous with the boundaries of the City of Valley but extend to areas now annexed to the City of Lanett and to unincorporated areas of the County. CC-Ex 3-B, 5; P-Ex 23, at 4-5; 3 Tr. 226-28 [A. Leak]; 6 Tr. 193-96 [Riley]; 10 Tr. 85-86 [Winecoff].

On January 29, 1993, this court granted the motion of the Lanett City Board of Education (“Lanett”) to intervene as a party to these proceedings

for the purpose of addressing: (1) issues related to student transfers occurring between Lanett and the Chambers County school systems; (2) issues related to students who live in one school district (either Chambers County or Lanett) but attend school in the other district; and (3) issues related to any annexations involving Chambers County and Lanett City.

Order of January 29, 1993, at 2-3.

On March 24, 1993, pursuant to Fed. R.Civ.P. 24(b), this court granted intervention to the City of Valley and the Valley City Board of Education. Order of March 24, 1993.

The Chambers County Board of Education unanimously opposed the creation and operation of a separate Valley City system. CC-Ex 12; 11 Tr. 98-99 (Newton); 7 Tr. 20 (Riley). The Chambers County Board consists of six members elected from single-member districts. Of the six, five are white and one is black. Three members reside within the city limits of Valley and have children who attend Valley schools. Two of these members are white and one is black. A fourth white board member’s son graduated in 1993. 7 Tr. 17-20 (Riley). The United States and the private Plaintiffs also opposed a separate Valley City school system.

B. Status of School Desegregation in Chambers County

The schools of Chambers County with their black enrollment percentages from 1969 to 1993 are shown in the following chart (P-Ex 26):

Though efforts had been made by the Chambers County Board to desegregate its schools prior to Leonard Riley becoming Superintendent in 1991, full desegregation had not been achieved. For example, when Riley became Superintendent, there were several buses which were not desegregated. 6 Tr. 201 (Riley); 10 Tr. 38-29 (Winecoff). The curricula at Lafayette High, predominately black, and Valley High, predominately white, were different in several respects. 6 Tr. 217-221 (Riley); 10 Tr. 36-37 (Winecoff). The black/white ratio of teachers at certain schools were out-of-line with the system-wide ratios. 6 Tr. 222-223 (Riley). The number of teachers with advanced degrees at certain schools, primarily in Valley, was out-of-line with those in other schools. See Agreed Order filed July 1, 1993, paragraph 4e, pp. 11-12; 10 Tr. 34 (Winecoff). Students were permitted to attend school out-of-zone and out-of-district without objection by the Chambers County Board, and this detracted from the effectiveness of the desegregation plan. See Agreed Order, July 1, 1993, paragraph 3, p. 7; Agreed Order, September 1991; 6 Tr. 208-216 (Riley); CC-Ex 20; 7 Tr. 6-11 (Riley); Order of this court filed February 16, 1994, regarding Roanoke City and Randolph County systems. Student black/white ratios show that schools in the northern part of the County were significantly predominately black whereas schools in the Valley area were predominately white. CC-Ex 1. Finally, facilities were of lesser quality in the County than in the Valley area. See pp. 57-68, V-Ex 1(a); 6 Tr. 232 (Riley); 10 Tr. 37-38 (Winecoff); 6 Tr. 143 (Howard).

Although the evidence shows that Riley and the Chambers County Board have made significant strides in this area since August 1991 when Riley became Superintendent, many deficiencies still exist, and this court could not find the system unitary were that the issue before it.

During the course of the trial of this case, the Chambers County Board reached a comprehensive agreement with the United States and the private Plaintiffs regarding action to be taken to further efforts to achieve a unitary school system. This agreement was incorporated into an Agreed Order entered on July 1, 1993. It addressed matters of concern in all aspects of desegregation, including student assignment, bus routes, facilities and equipment, faculty and staff, curriculum, extracurricular activities, gifted program, majority-to-minority transfers, and long-range planning. Among other things, the Board agreed to support the creation of a single consolidated high school for the County-

Thus, extensive cooperative efforts are now underway aimed at ultimately achieving a unitary school system in Chambers County.

C. The Proposed Valley City School System

Arnold Leak is chief spokesman for the City of Valley and the Valley City Board of Education in connection with its proposed formation of a Valley school system. Leak is chairman of the City of Valley Education Advisory Committee and is a member of the Valley City Council. (2 Tr. 90-91.)

Leak is a life-long citizen of the Valley area and a graduate of Valley High School. He earned a B.S. degree in industrial engineering from Auburn University (3A Tr. 85) and is employed by West Point Pepperell. He first became involved in efforts to establish a city school system in 1990 (3A Tr. 141) and since that time has devoted thousands of volunteer hours on the project (3A Tr. 91), including extensive reading, study of education matters, and attendance at seminars sponsored by the U.S. Department of Education’s America 2000 Program. 5 Tr. 99. Though not a professional educator, Leak impressed the court as being knowledgeable about theories of education and as a very talented man, sincerely dedicated to improving the quality of education in Valley and to doing so through a fully integrated public school system in the city.

Historically, there was tension between the Valley area and the rest of the County. P-Ex 62 [Milner deposition, at 55]; 1 Tr. 12-13 [D. Leak]; 8 Tr. 147-49 [Riley],

During the 1970’s and 1980’s, however, the Chambers County school district was also beset with a series of financial and management difficulties that were a cause of great concern, especially among officials and citizens in the Valley area. Valley’s witnesses cited these problems as one of the major justifications for creating a separate school district. E.g., 1 Tr. 151, 176-77 [Fuller]; 2 Tr. 25-26, 76-78 [Hall].

Indeed, as noted earlier, in the 1980’s the current Chambers County Superintendent of Schools, Leonard Riley, who was then serving as Principal of Valley High School, shared these concerns and believed that they justified creating a separate Valley system. 7 Tr. 148-49, 8 Tr. 3-7, 149-53 [Riley].

For example, until 1970 the County levied a five-mill property tax for capital expenditures; however, referenda to extend that levy were defeated in 1969 and 1974, resulting in deterioration of physical facilities and strain on operating budgets. Until passage of a one-cent sales tax earmarked for specific projects in 1992, the system had no capital outlay funds for new construction and could only respond to crises. P-Ex 29, 30, 30a, 62 [Milner deposition, at 376]; 8 Tr. 219-20 [Riley]; V-Ex 57, at 1-2 [Doss Leak 1985 report to County Commission]; id. at 10 [1984-85 construction at Huguley and Valley High paid for out of operating revenues].

These difficulties were compounded by a decision of the West Point Pepperell corporation to phase out its longstanding practice of making annual contributions to the Chambers County school system, and by proration of appropriations at the state level. P-Ex 25; V-Ex 57, at 2; 7 Tr. 148, 8 Tr. 220-22 [Riley].

The school district was penalized substantial sums by the State of Alabama for operating at a deficit. V-Ex 73 [Milner deposition, at 151-55]; V-Ex 57, at 11; 8 Tr. 131-32,145 [Riley].

These deficits resulted in part from management decisions to operate small schools requiring extra teachers for whom the school district did not receive state funding, from an increase in the size of the central office staff, and from salary increases. V-Ex 57, at 4-10 [Doss Leak report to County Commission].

Valley’s witnesses attribute such management decisions in part to the fact that the County Superintendent is elected rather than appointed. E.g., 1 Tr. 151, 185-86, 206 [Fuller]; see also V-Ex 57 [Milner deposition, at 576: he had no plans to consolidate the small county high schools because of the political unpopularity of such a move].

However, Leonard Riley, the current Chambers County Superintendent, has addressed the fiscal and management problems, consolidated or closed schools, reduced the number of staff, and substantially improved the financial position of the district. , For example, the system has not operated at a deficit since he assumed office. Valley’s witnesses expressed satisfaction and praise for his achievements, while noting their concern about past turnover in this elected position. 1 Tr. 176-77, 203-04 [Fuller]; 2 Tr. 92-95 [Hall]; 4 Tr. 114, 5 Tr. 132-34, 6 Tr. 162-78, 7 Tr. 62-66, 144-47, 9 Tr. 3, 24 [Riley]; 10 Tr. 147-49 [Winecoff].

Riley has also supported, and the Chambers County Board of Education has endorsed, a change to appointment rather than election of the school superintendent in the county; such a measure will be placed on the ballot in the next general election. CC-Ex 11; 1 Tr. 208-09 [Fuller]; 7 Tr. 25-27 [Riley].

Another reason articulated for Valley’s desire to form its own school district concerns an expectation that many Valley citizens apparently had in the early 1980’s about the construction of a new Valley High School. E.g., 1 Tr. 151, 177 [Fuller].

Because of crowding, the school system between 1976 and 1980 considered building a new Valley High School but had no capital outlay funds and was running deficits. V-Ex 73 [Milner deposition, at 494-503]; V-Ex 57, at 1-2.

In 1979, a five-year one-cent sales tax for educational purposes was passed by the voters in the county. In the 1980 election campaign, the successful candidate (Melvin Fet-ner) said that if he were elected he would build a new Valley High School. By the end of his term, however, the county school system was facing a $750,000 deficit. P-Ex 62 [Milner deposition, at 22-23]; V-Ex 57, at 11 [Doss Leak report to County Commission].

In 1984 the voters passed a 30-year extension of the one-cent sales tax. Valley residents thought that this would assure funding for construction of a new high school. Former Chambers County Superintendent Jerry Milner, who chaired a committee campaigning for approval of the extension, however, never heard or read of any promise by the Superintendent or Chambers County Board of Education to utilize the revenues for this purpose. P-Ex 62 [Milner deposition, at 21, 515], 1 Tr. 177 [Fuller], 2 Tr. 25 [Hall].

No written documentation of any such commitment was produced by Valley, nor was any witness (with the exception of the comments of Mr. Milner cited above) specific about the circumstances of any such promise. Cf. 1 Tr. 36-37, 84 [D. Leak].

Around the time of the passage of the 30-year tax in 1984, there were plans announced to build two new high schools, one in Valley and one in Lafayette. 8 Tr. 222-23 [Riley]. Thus, people in the County also had reason to be upset about not getting a new high school. Id.

Valley has now requested authority to create and operate a separate city school system. Its officials have agreed to abide by any orders of this court which are designed to assure that such a system will not impede the desegregation process in Chambers County. Valley has also committed itself to operating a totally integrated system and points out that it would have a unique opportunity to engineer a system through the use of the Green factors. 2 Tr. 295-296 (Freeman). There have been a number of options presented to this Court by Valley, all of which present various ways of operating a separate city system. For example, one proposal would allow such a proposed system to operate with the presently existing attendance zones while another would confine the proposed system to the City limits. There are also variations on these two options. VEx. IB.

The option preferred by Valley is Option 1. V-Ex. IB, p. 2, paragraph 3, V-Ex. 2. Option 1 would preserve the current attendance zones.

In 1990, five elementary schools fed into the Valley Junior High School and the Valley High School, including four within the city limits of Valley (Fairfax, Langdale, River-view and Shawmut) and one outside the Valley city limits, across 1-85 in Chambers County (Huguley Elementary School). Riv-erview Elementary School has since been closed by the Chambers County Board of Education, with the approval of this Court. (V-Ex. 1(a).)

Valley Junior High School and Valley High School are the closest secondary schools for Huguley students to attend. Many families in Huguley have young children attending Huguley Elementary and older children attending Valley Junior High or Valley High School. (2 Tr, 9-149)

Six hundred eighty-one (681) students who reside outside the city limits of Valley within Chambers County attend school within the city limits of Valley. (V-Ex. 1(a); Testimony of Arnold Leak, Vol. 3A-5, Vol. 11.)

Three hundred ninety-two (392) students are enrolled in Huguley Elementary and would eventually feed into Valley Junior High School and Valley High School under the present desegregation plan. (V-Ex. 1(a); Testimony of Arnold Leak, Vol. 3A-5, Vol. 11.)

The Chambers County Board of Education currently provides transportation to students who live outside the Valley city limits in the county and attend school in Valley, pursuant to the present desegregation plan. (1 Tr. 190.)

The total student population for each Valley school for the 1992-93 school year is as follows:

School Total Student Population Reference

Fairfax Elementary 528 V-Ex. 1(a), p. 23

Shawmut Elementary 224 V-Ex. 1(a), p. 26

Langdale Elementary 326 V-Ex. 1(a), pp. 29, 41

Valley Junior High 469 V-Ex. 1(a), p. 32

Valley High School 767 V-Ex. 1(a), p. 36

The total number and percentages of black and white students for each Valley school for the 1992-93 school year are as follows:

School No. Black % Black No. White % White

Fairfax Elementary * 161 30.5% 367 69.5%

Shawmut Elementary * 81 36.2% 143 63.8%

Langdale Elementary * 148 45.4% 178 54.6%

Valley Junior High* 188 40.1% 281 59.9%

Valley High School* 325 42.4% 442 57.6%

(*Same references as above.)

The total faculty population for each Valley school for the 1992-93 school year is as follows:

School Total Faculty Population Reference

Fairfax Elementary 31 V-Ex. 1(a), p. 24

Shawmut Elementary 19 V-Ex. 1(a), p. 27

Langdale Elementary 20 V-Ex. 1(a), p. 30

Valley Junior High 26 V-Ex. 1(a), p. 33

Valley High School 44 V-Ex. 1(a), p. 37

The total number and percentages of black and white faculty for each Valley school for the 1992-93 school year are as follows:

School No. Black % Black No. White % White

Fairfax Elementary * 8 25.8% 23 74.2%

Shawmut Elementary * 6 31.6% 13 68.4%

Langdale Elementary * 6 30.0% 14 70.0%

Valley Junior High * 8 30.8% 18 69.2%

Valley High School * 11 25.0% 33 75.0%

(* Same references as above.)

The total number of students in all of the five Valley schools is 2,314, with a total black/ white ratio of 39%/61%. (V-Ex. 1(a), p. 38.)

The total number of students in the remaining Chambers County schools is 1,971, with a total blaek/white ratio of 76.2%/23.8%. (V-Ex. 1(a), p. 38.)

The total number of students in the entire Chambers County system, combining Valley and the remaining Chambers County schools, is 4,285, with a total black/white ratio of 56.1%/43.9%. (V-Ex. 1(a), p. 38.)

The total number of faculty in all of the five Valley schools is 140, with a total black/ white ratio of 27.9%/72.1%. (V-Ex. 1(a), p. 39.)

The total number of faculty in the remaining Chambers County schools is 128, with a total black/white ratio of 31.2%/68.8%. (VEx. 1(a), p. 39.)

The total number of faculty in Chambers County, combined Valley and the remaining Chambers County schools, is 268, with a total black/white ratio of 29.5%/70.5%. (V-Ex. 1(a), p. 39.)

The average percentage of black student enrollment among the Valley schools is 39% (Valley Ex. 1(a), p. 42), which is close/proportional to the county-wide minority population of 35.9%. (V-Ex. 1(a), p. 6.) Within Valley, the proportion of black students to white students ranges from a low of only 30.5% at Fairfax to a high of 43.4% at Valley High. (V-Ex. 1(a), p. 42.) The actual Valley city black population amounts to a lesser percentage of the total city population than the black school population percentage does of the total school population.

While Option 1 would allow students who reside outside the city limits to attend school inside the city, as they are doing now, their parents would have no vote for the school board members if elected nor any vote for the council members who would decide on appointed members. 4 Tr. 134 (Leak). This option would divide assets based on the percentages of students. V-Ex. IB, p. 2.

Valley has presented no definitive plan as to how such things as bus transportation or voting for board members by non-residents of the city would be handled under this plan, taking the position that such things can be negotiated between the two systems or should be decided by this court. 4 Tr. Ill, 134 (A. Leak).

Valley’s position is that Option 1 would leave intact the present attendance zones, cause the least student disruption, allow children to attend schools they or their parents have historically attended and effect no changes in the remaining schools. 4 Tr. 78, 112 (Leak); 2 Tr. 21, 30-31 (Hall).

Arnold Leak, Valley’s spokesman on the school issue, testified that he would not recommend Options 2, 3, 4, 5, or 6 because of the student disruption. 4 Tr. 99 (Leak); 2 Tr. 30-31 (Hall).

D. Effect of Valley Plan on County Schools

The Court was presented with a considerable amount of testimony and exhibits about the effect of permitting Valley to form a school district separate from the balance of Chambers County. This evidence focused in particular upon two areas: impact on the desegregation process and impact upon the financing of public education in the successor Chambers County district.

Impact on Desegregation

The City of Valley has requested that the Court approve its existence as a separate system operating the school facilities located within its corporate boundaries but serving students living in those schools’ current attendance boundaries, ie., students residing outside the city limits. 3-B Tr. 226-27 [A. Leak].

Superintendent Riley testified that he was unaware of any authorization under Alabama law for a city school system to include territory beyond the city limits. 8 Tr. 212 [Riley]. The court finds no such authorization, other than through a court-ordered desegregation plan.

The creation of a separate Valley city system maintaining the present attendance zones would leave a County system consisting of 1,969 students, 1,511 or 77% of whom would be black. CC-Ex 1, p. 3.

Of the schools remaining in the County system, Huguley (K-6) would be 28% black, Chambers County High School (K-8) would be 64% black, Five Points Elementary (K-8) would be 77% black, Eastside (K-3) would be 89% black, Southside (4-8) would be 92% black, and Lafayette High (9-12) would be 94% black. 6 Tr. 180-185 (Riley); CC-Ex 1, p. 3. All of these schools would be substantially predominately black with the exception of Huguley which is located in the southern part of the County and whose students now attend and would attend under Valley’s proposal Valley City Schools after completing the 6th grade. CC-Ex 1.

The remaining County schools would also have a substantial number of students who would receive free and reduced lunches. 6 Tr. 205 (Riley); CC-Ex 2. Those in the County who receive free and reduced lunches would exceed those in the City schools. Specifically, 79% of the County students are eligible for free or reduced lunches which means they are at or below the poverty level whereas only 39% of the City students are eligible for free or reduced lunches. CC-Ex 2.

Determining the precise racial characteristics of separate Valley and Chambers County school systems should Valley’s request be granted is complicated by a number of factors: First, Valley apparently proposes to permit students in grades 7-12 who reside within the current Huguley Elementary School attendance boundaries to choose whether to attend the Valley system or the Chambers County system. 3-B Tr. 227 [A. Leak]; but cf. 5 Tr. 63 [A. Leak: option in Huguley area would cause confusion],

In the 1992-93 school year, 497 students residing in Chambers County outside the city limits of Valley and outside the city limits of Lanett (as expanded by the Plant City and West Shawmut annexations) were enrolled in schools within Valley. Of these, 141 pupils attended Fairfax Elementary and the remaining 356 attended Valley Junior High School and Valley Senior High School. 8 Tr. 217-18 [Riley].

Of these 356 pupils, according to calculations made by Valley, there are a total of 234 pupils in grades 7-12 residing in the Huguley attendance area, of whom 57 are black and 179 are white. V-Ex 1-B, at Tabs 1, 2, 3.

If these pupils exercised the option that Valley proposes to afford them along racial lines in a manner that decreased, rather than increased, desegregation, the white enrollment proportions within the City system would increase to 62% white and the county system (including Huguley Elementary School) would become 78% black. V-Ex 1-B, at Tabs 1, 2, 3; CC-Ex 1.

If Valley intends to offer a similar option to other students residing outside the city limits but within the current Valley Junior-Valley Senior High School attendance zone, such as those pupils in the Fairfax Elementary School zone outside the city, the disparity in racial composition between the two systems would become even sharper. As noted, with the exception of the Huguley Elementary School, all of the facilities located within Valley currently have majority-white enrollments and all of the facilities that would remain in the County system should Valley’s request be granted have heavily black enrollments. CC-Ex 1; 6 Tr. 182-84 [Riley].

In addition to these uncertainties, enrollments will be affected by the Court’s determination with respect to the cross-district attendance of Lanett residents. Students formerly residing within Chambers County, in areas annexed to Lanett in 1988, currently attend either schools in Lanett or in Chambers County pursuant to an informal, unwritten agreement between the Superintendents of the two systems. 8 Tr. 250-53, 260-65 [Riley]; 11 Tr. 21-25, 41-42 [Bryan], These arrangements have never been formalized or submitted for this Court’s approval.

In 1992-93, 225 black and 16 white students residing in areas annexed to Lanett attended Chambers County schools; all but one black student attended schools located within the Valley city limits or Huguley Elementary School. CC-Ex 2; 6 Tr. 207 [Riley].

Also in 1992-93, 151 black students residing in the West Shawmut area annexed to Lanett attended Lanett City schools, while 157 white and 32 black students residing within Chambers County in areas not annexed to Lanett were enrolled in Lanett City schools. L-Ex 2; 6 Tr. 207-08 [Riley].

Dependent upon what determinations are made with respect to the ultimate attendance of these pupils consistent with the Orders in this action, the disparity in racial composition between the new Valley district and the remaining Chambers County system could either increase or decrease to some degree. E.g., 5 Tr. 153 [A. Leak: if white students from Valley area who currently attend Lan-ett schools had to return to Valley, it would not help integration].

Under the best of circumstances, the population of the district that will remain if Valley is allowed to withdraw from the Chambers County system will be small, rural, and about 77% black. Approximately 75% of its students would qualify for free or reduced-price lunches because of low family income. 8 Tr. 259 [Riley]. Riley admitted that if the split-off occurs, he would be interested in moving to a larger and better desegregated district. Id. at 260 [Riley].

Approving a new Valley system based on attendance zones extending outside the city limits, whether such zones be those currently in place or modified zones, would create an artificial situation dependent upon continuation of court orders and supervision, rather than a move toward the establishment of a system with prospects of being declared unitary. This is because the City would have no obligation to accept students from outside its city limits in the absence of a continuing court order.

Granting Valley’s request also would impede or prevent the construction or operation of a single, consolidated high school for all students in the current Chambers County system, a measure to which the existing Chambers County Board of Education has committed itself, which this Court has approved for implementation should it determine not to permit the creation of a separate Valley system at this time, and one which would insure complete desegregation of the public schools in the county at the high school grade level.

The need to provide new high school facilities in Chambei’s County has long been recognized and is acknowledged by all parties. In the mid-1980’s, the system considered building two new high schools in the county. V-Ex 73 [Milner deposition, at 496]; 8 Tr. 222-23 [Riley]. Superintendent Riley beliefs that both Lafayette and Valley High Schools need to be replaced. 8 Tr. 222-23 [Riley]; see also 10 Tr. 46-47 [Winecoff],

The City of Valley’s plans for its new school system include new facilities for both the Valley Junior and Valley Senior High Schools, which Dr. Hall testified were needed. V-Ex 2, at 7; 5 Tr. 38 [A. Leak]; 2 Tr. 46 [Hall]; see also V-Ex 75-A (the Bishop-Cleveland study) (Options 6 & 7).

Experts for the City of Valley and the United States agreed that the optimum size for a high school is between 1200 and 1600 students, see 2 Tr. 66 [Hall]; 10 Tr. 29-30 [Winecoff].

Because of its small size (fewer than 500 students), it is especially difficult for Lafayette High School to offer a comprehensive curriculum. 10 Tr. 36-37 [Winecoff]. Valley High School, which has approximately 750 students, can offer somewhat more than Lafayette High School but is still limited in some ways by its size. Id.

The benefits of operating a consolidated high school would be substantial: better desegregation than currently exists at the high school level, 7 Tr. 123, 9 Tr. 7-8 [Riley]; 10 Tr. 26-29 [Winecoff]; a wider range of curricular offerings, 8 Tr. 30 [Riley]; 9 Tr. 75-76 [Fannings]; 10 Tr. 26-29 [Winecoff: large enough teaching staff to offer diverse programs]; elimination of curriculum disparities, 8 Tr. 30 [Riley]; 9 Tr. 66-67, 75 [Fannings]; more efficient use of resources, 7 Tr. 124-25, 8 Tr. 32-33, 223 [Riley: County cannot afford to build two high schools]; adequate resources to provide up-to-date educational program and extra-curricular activities. Id. Dr. Winecoff also believes that a comprehensive, consolidated high school would help attract white students back to the school system. 10 Tr. 51-52 [Winecoff].

The Alabama State Board of Education has urged local school boards “to seriously consider merger and/or consolidation as a viable option when the decision regarding the improvement of educational services and the wise use of resources are being made.” CC-Ex 10; 9 Tr. 17 [Riley].

Although a consolidated school proposal is always an emotional issue for any community, Superintendent Riley believes that there would be significant support for this plan in Chambers County once a comprehensive plan is presented, demonstrating how the quality of education would be enhanced. 7 Tr. 124, 9 Tr. 14, 16 [Riley]. Dr. Winecoff agreed. 10 Tr. 50-51.

There is some evidence to support Riley’s expectation. Even before development of the current proposal, the Bishop-Cleveland study team reported that 40% of the teachers at Valley High School responding to a survey agreed with the concept of a consolidated high school, and 51% of the responding parents of students attending Lafayette High School supported a consolidated high school in Chambers County; the students themselves agreed. 9 Tr. 12-15, 51 [Riley].

As plaintiffs’ witness George Fannings noted, at one time he had opposed the idea of a consolidated high school, but he now supports it, having seen the benefits of consolidation first-hand when his son was reassigned to Lafayette High School at the time the very small Five Points High School was closed in 1991. 9 Tr. 75-76 [Fannings].

The court has already concluded that the Chambers County Board of Education has not fulfilled its constitutional obligation to eliminate all vestiges of the former dual system to the extent practicable.

Based upon all of the evidence described above, the Court now finds that establishing a separate system in Valley predicated upon maintenance of existing school attendance boundaries will interfere with the implementation of further measures designed to eliminate racially identifiable schools in Chambers County, to the extent practicable.

Financial Impact

The Court also received substantial evidence and testimony concerning the financial and educational viability of the surviving Chambers County school system if Valley is allowed to operate as a separate district; that is, concerning the fiscal and other resources that will be available to the county district and the scope and quality of educational program that the district is likely to be able to provide with those resources.

This evidence involves the highly complex Alabama system of school financing. 3-A Tr. 49 (McClain).

Although in Alabama much of the revenues for public education come from the state government, 3-A Tr. 18 (McClain), not all of these funds are distributed on the basis of a uniform measure such as ADA (average daily attendance). 3-A Tr. 40, 50-51 (McClain: state transportation aid, teachers’ pension contributions, for example, not based on ADA; more than 25% of state funds distributed on basis other than ADA).

State funding is intended to provide support for only a minimal level of educational offerings, not an adequate education. 3-B Tr. 207-09 [Teague]. Locally raised funding to supplement what is available from state sources is the key to educational quality. Id.; 3-A Tr. 36, 61 [McClain]; 9 Tr. 102 [Leslie].

In fact, state aid is by itself insufficient to meet the entire cost of providing an education of even minimal quality; school districts must raise additional local revenues for education in order to qualify for state aid. 3-A Tr. 51-52, 55-56 [McClain].

The Alabama Legislature has also, through the Smith Act, imposed limitations on class sizes in the early grades that require most systems to raise and expend additional local revenues because the state aid they receive does not cover the costs of compliance with this law. 3-A Tr. 60-61 [McClain]; 7 Tr. 102 [Riley],

Valley does not disagree with the general principle that local funding is the key to the level and quality of educational offering that a system can provide; rather, it takes the position that adequate revenue-generating opportunities to support a high-quality educational program will be available to the surviving Chambers County district even after Valley’s formation and operation. E.g., 4 Tr. 4, 10-11 [A. Leak: potential increases in property tax].

However, Valley officials did no comprehensive study of the financial impact on the Chambers County system of operating a separate district comprising the current Valley Jr./Sr. high school attendance area. 5 Tr. 14 [A. Leak].

Prior to Valley’s decision to form its own school system, it retained a consultant (Dr. B.D. Whetstone) to examine the feasibility of such a step. In January of 1988, Dr. WTiet-stone submitted a report to the Valley City Council, A Study to Determine the Feasibility of Forming a City School System in Valley, Alabama. V-Ex 37.

Dr. Whetstone noted several advantages to a separate system: greater community support, appointed school board, better financial support, and the unique authority of cities to raise revenue. Id. at 26-27. The disadvantages of operating a city system included additional administrative costs, the concern “that smaller school systems tend to provide limited student services because a small student population tends to dilute the State and federal funding sources,” the fact that operation of a city system usually puts the county system at a financial disadvantage, and the lack of electoral power afforded persons living in unincorporated areas assigned to city schools. See id. at 28.

Dr. WTietstone recommended that “[t]he effects on the County as a whole should be analyzed carefully to avoid undue political and financial stress which may result from the transition.” Id. at 32.

Valley’s witnesses, however, admitted that they did not examine the impact of separation on the surviving County system. 1 Tr. 69 [D. Leak]; 1 Tr. 172-73 [Fuller]; 1 Tr. 229-30 [Crowder]; 2 Tr. 67-69 [Hall].

Valley officials did not, for example, analyze the distribution in the two proposed school systems of children having special educational needs, although its financial expert witness Dr. Darrell McClain admitted that in general, rural districts have proportionately more high-cost special education students than urban districts. 3-A Tr. 62-63 [McClain]; 5 Tr. 129-31 [A. Leak].

The cost of special education programs is not fully funded from state or federal sources outside local revenues, and local costs for these programs can be a substantial burden. 3-A Tr. 674 [McClain],

A larger share of the existing county district’s special education population resides in areas outside the proposed Valley system than within it. CC-Ex 2, at 6 [13.2% of enrollment in surviving county system; 11.7% of enrollment in Valley]; 7 Tr. 46-47 [Riley]; 9 Tr. 108-09 [Leslie]; see US-Ex 44, at 5; cf. 10 Tr. 39410 [Winecoff: county system will have twice the proportion of students from families below poverty line, who have special needs and require special programs, as Valley]; CC-Ex 2 at 6 [65% of students in county system eligible for free lunches compared to 30% in Valley].

If the court permits the Valley district to operate, the Chambers County district would have to equip and operate special education programs now offered only at schools in the Valley area, such as the pre-school handicapped student program at Fairfax Elementary School and the gifted student program at Fairfax Elementary School. 8 Tr. 186-94 [Riley].

The only budget estimates that Valley prepared for its school system were based upon determining the proportion of current Chambers County School District students who would be assigned to schools in the new system Valley proposes to create (54%) and multiplying each item in the current year’s statement of revenues and expenditures for the existing county district by that ratio; Valley officials made no estimate of special needs each system would be required to address, etc. 3-B Tr. 216-19, 5 Tr. 11-12, 129-31 [A. Leak].

More refined calculations made by Superintendent Riley demonstrate that this simple proportional approach does not furnish an accurate projection of the actual costs to each system of maintaining the status quo; ie., the level of educational offering currently available in the single county district. E.g., 7 Tr. 40 [Riley: application of state formulas to each category of item more accurate than straight proportional approach]; id. at 46-47 [Riley: he requested weighted special education counts for Valley and surviving county district from the State Department of Education].

Expenditures

Riley’s estimates of General Fund expenditures that will be required to maintain the existing educational program in each of the successor districts indicate that the change in structure will increase the total costs to the citizens of Chambers County. For example, special education costs not reimbursed from state or federal sources will be more than $125,000 higher than under the current arrangement. CC-Ex 4, at 30-31 [charts]; 7 Tr. 48-51 [Riley].

The surviving Chambers County district would be required to contribute a share of local funds for special education that significantly exceeds the proportion of all current students whom it would enroll if Valley is permitted to operate: 46% of all current pupils will remain in the county system but that system will bear 57% of total local costs for special education. Id.

Similarly, Riley estimated the cost of school bus transportation in the event of a split of the two districts, based upon each system’s operating its own fleet, and taking account of school transportation reimbursement formulas used by the State Department of Education. Neither additional personnel, capital outlays, depreciation, or maintenance facility costs were included in his estimates, but only driver and maintenance personnel salaries, fuel costs and parts, maintenance and administrative costs. Although the total of these operating costs in the two systems is about the same as current operating charges, once again the surviving Chambers County system would bear a significantly larger share of unreimbursed costs which it would have to raise from local funds — 67% of the total local funds needed for this purpose. CC-Ex 4, at 3, 10, 52-53; 7 Tr. 52-66 [Riley].

Riley estimated total General Fund expenditures in the two systems at $5,971,315 for the surviving Chambers County district and $6,417,559 for Valley. The surviving county district’s share of this total (48%) exceeds the proportion of current students whom it will co