Nevada County Picayune and Gurdon Times Newspaper Archive

Shortfall concerns Nevada board

A $140 million shortfall has been projected for the state of Arkansas, which will have an adverse effect on most school districts in the state.

This topic was of prime concern for the Nevada School Board during its monthly meeting Thursday, Nov. 15.

Nevada Superintendent Rick McAfee said the shortfall will result in massive cuts by the Arkansas Department of Education, as schools in the state get 48 cents from every dollar in tax revenue.

Gov. Mike Huckabee, he said, will make recommendations on areas to be cut, with superintendents across the state examining the governor's proposals. The superintendents will make their own recommendations to the ADE.

McAfee said rural schools could get together and lobby to save their funding, but changes will have to be made.

One of the changes the Nevada board made was to suspend all out-of-state travel after the middle of December, except for mandated meetings.

Most of Nevada's budget, McAfee said, is for personnel. To save money the district won't replace retiring teachers, asking, instead, the remaining staff to spread themselves out to take up the slack.

"We'll do the best we can to keep the district solvent," McAfee said.

"Things will pick up in the U.S.," he continued. "America has been challenged and has responded like never before. The Christmas season is coming and should pick up in tax revenues. We'll see how we're doing by Spring."

Board President Don Callicott asked about the possibility of passing a millage increase.

McAfee said it would be a double-edged sword, because the state would hold back funds to match what the millage brought in.

However, he said, the building will be paid off in 2006, and the voters could be asked to rededicate the millage. This would free up $1.5 million, and could be done over a 15-year period.

McAfee has talked with representatives of Stephens, Inc., a Little Rock investment firm, about doing this and will bring a proposal to the board soon.

The student population, he said, has increased to 486, 12 more than were enrolled in October. But, the district is currently being paid on the average daily attendance for the 2000-2001 school year, as is the norm.

McAfee pointed out a millage passed next September during the school elections would see collections start in 2003, with the district getting revenue in 2004.

As it stands, he said, the district is coming up $13,000 short a month.

Another problem with millages, McAfee said, is the Lake View suit hasn't been settled yet. Depending on its outcome, the district could end up raising its millage rate, but losing money in the long run.

A federal judge, McAfee told the board, has said the damages awarded could be between $450 million and $1 billion, with the state being unable to pay either.

Because it's a federal judge, he said, federal funding could be cut to Arkansas if the court's orders weren't followed.

The idea of the suit, he said, is to make education adequate for all students, as the judge ruled there's no such thing as an equal education. Because of this, every district in the state must spend the same amount on each student based on the money spent by the most expensive district in the state. In this case it would be Pulaski County.

Along with this, he said, the governor promised a $2,000 pay raise for teachers next year, while the Blue Ribbon Commission has recommended teachers be given a raise of $8,500.

"A lot will depend on what happens in the next three to six months," McAfee said. "We must be honest and up front with the public.

"If we (America) doesn't come out of this recession quickly, I think a special legislative session will be called to address the issue."

According to McAfee, there are two possible solutions to the shortfall problem, both unpleasant and both requiring a vote from the people. One is raising the state sales tax by four cents, with the other being to double the state income tax.

"I don't see this being done now," he said.

This could result in a tuition-based public school system, Callicott said.

"It's possible," McAfee said. "We could see free education removed from the state constitution. I don't think there's a quick fix to this problem, but there are options to be examined."

Transportation could be one area eliminated from rural districts, as no district is required to furnish transportation to and from school for its students.