Apr. 8--A Shelby County Chancery Court judge has stayed an order that the city of Memphis has to pay Memphis City Schools $57million until the case is heard by a court of appeals.

Chancellor Kenny Armstrong said that since the school district is fully funded for the current year, including over $400 million in state funds, the city does not have to pay immediately.

"I really don't see any harm in granting a stay," said Armstrong.

Armstrong ruled in February that the council's decision to slash $66 million in funding to the school district violated the state's basic education-funding formula.

MCS had filed suit over the funding cut and the city returned the favor by filing a lawsuit that said the school district owed the city $152 million.

Council attorney Allan Wade said once Wednesday's decision is recognized in the court system, he will press to have a quick appeal hearing, possibly appealing directly to the state Supreme Court.

Dorsey Hopson, the lawyer for the school district, said the district anticipated the chancellor would grant the stay.

"But we didn't want to be back in this position next year. The court made it abundantly clear that the ruling applied to next year."

Staff reporter Jane Roberts contributed to this story.

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