A new financial feasibility study commissioned by the city of Irondale found it is possible for the city to form its own school system and leave the Jefferson County Schools. Public officials discussed the report at a town hall Tuesday evening.
The study does not recommendation a course of action. Instead, it lays out what the city would be taking on — including millions of dollars in debt, the cost of operating school buildings and a relatively small student population.
Irondale is currently part of Jefferson County Schools. The study estimates there were 995 school-age children living within the city during the 2025-26 school year.
But only 777 of those students attended schools located in Irondale, according to the study.
That distinction is important because state and county education funding is tied in part to student enrollment.
Ira Harvey, the school finance consultant who conducted the study, said Irondale’s student population is one of the biggest questions when determining whether a separate system could work.
“Do we conclude that you can’t do it? No. We conclude that there are issues that need to be resolved. Do we conclude that you should do it? No. We don’t make conclusions about that,” Harvey said.
What costs would Irondale take on?
If Irondale were to separate from Jefferson County Schools, the city would receive control of the four schools located within its boundaries.
The study estimates the proposed city system would also inherit about $21.5 million in outstanding capital debt tied to those facilities. The annual debt obligation is estimated at roughly $1 million.
The buildings also have maintenance and repair needs. The study identified serious concerns at several sites related to the condition of HVAC, electrical systems, flooring, exterior walls and plumbing.
Harvey also warned that starting a new school system would create a cash-flow problem.
A new school board would begin operating at the start of a school year, but state and local education money would not flow immediately. That means the city and school board would need to have enough money on hand to cover several months of expenses, including employee salaries, insurance, utilities and maintenance.
Where would the money come from?
The study estimates an Irondale school system could receive nearly $9.6 million in local revenue based on 2025-26 figures. That includes local tax revenue as well as other local and state-related sources. Irondale would also receive a share of countywide school taxes based on its student population.
The city’s existing tax base is one of the reasons the consultant found the proposal potentially workable. Jefferson County has a relatively strong property tax base, and the study says Irondale would benefit from existing school tax revenue.
But Harvey said having a strong tax base doesn’t automatically make a small school system easy to operate.
The proposed system could have fewer than 1,000 students, creating what he called a diseconomy of scale — essentially, some costs don’t shrink just because there are fewer students.
“You’ve got to hump up over a big burden to get operating budget,” Harvey told residents.
‘We’re just going to continue the process’
Mayor James Stewart said the city is still in the early stages. He called the response from residents at the town hall encouraging, noting that the meeting was not contentious.
“It makes us feel that we are moving into the right direction, and we’re just going to continue to keep doing our homework and moving forward with the process,” Stewart said.
Stewart said there is currently no timeline for creating an independent school system.
The mayor also said the city has not yet determined how it would handle the condition of the school buildings or the associated debt.
“If we ever get to the point of separating, then we would spend additional resources and money to be able to determine those things,” Stewart said.
Local control has appeal
For some Irondale residents, the potential benefits aren’t just financial.
Andrea Toyer, an assistant principal who lives in Irondale, said she likes the idea of children attending schools in the community where they live. She recalled a time when her own children had to travel from the Vestavia area to attend school in Irondale.
“I think the fact that we know that our students will be able to learn where they live, and that they’ll be able to stay in their own community,” Toyer said.
Toyer said she does have one major concern: who would serve on the Irondale Board of Education. She said she hopes the city prioritizes people with experience working in education.
If Irondale moves forward, the Board of Education — not the City Council — would be the legal entity responsible for running the school system and making education policy. The City Council would appoint the board.
Resident Michael Hitt said Irondale’s affordability and proximity to Birmingham could make the city attractive to younger families in the future.
“I think a lot of younger people, you know, of all different types of people that work in the city, will probably choose Irondale due to its affordability,” Hitt said.
What happens next?
Before Irondale could separate from Jefferson County Schools, there would be additional legal, financial and operational steps. Among them would be negotiating a separation agreement between the two school boards and determining exactly how property, debt, employees, transportation and other responsibilities would be handled.
The study also says some tax questions require additional legal clarification before the financial picture can be considered final.
For now, Stewart said there is no final decision.
“If we ever get to the point of separating, then we would spend additional resources and money to be able to determine those things," Stewart said. "Right now, it just happened to be too early in the game, but the response that we’re getting is very encouraging."
