Clay County Schools will shut down and lock up Friday at midnight due to a budget problem.

The decision to keep schools open went up for vote Thursday at a regularly scheduled school board meeting. It was defeated 6-4.

Teachers and concerned parents packed the meeting, many saying they wanted to see schools close.

The schools director has said for months that classes could be cancelled if basic education funding runs out.

Leaders said the problem has been building for years in a county not making enough revenue to keep up with state and federal mandates.

A 20 percent property tax increase was proposed, but commissioners didn’t accept it.

“This brings the county commission and the school board back to the drawing table,” said Rafferty Cleary, a reporter for 1069 Kicks Country, who attended the meeting. “The state will give them time to figure this out.”

Cleary said the schools director blames the unfunded Affordable Care Act and that one of three things must happen next: The county must raise the property tax, the state will swoop in and raise the property tax or the state will tell the county to work with what they have.

“And the reason being is they have to be back open before Nov. 16 or Dec. 8, the reason being is because by law, school systems have to have 150 educational days in order to take the TCAPs,” Cleary said.

So what happens next?

Schools Director Jerry Strong said a meeting will be called Friday morning with the county, lawyers and school comptrollers to figure out how to get funding to the school system.  (WSMV-TV)