Nevada County Picayune and Gurdon Times Newspaper Archive

Settlement Reached In School Funding Formula

from State Sen. Mike Ross

The state has reached a settlement of a lawsuit challenging the constitutionality of the public school funding formula.

Attorneys for all sides have signed the agreement and submitted to a Pulaski County chancery judge for approval. One issue to be resolved is the amount of attorneys' fees to be paid to the plaintiff's lawyers.

The suit was filed in 1992 by the Lake View School District, which contended that disparities existed in the formula for distribution of state aid to schools. The formula did not adequately equalize educational opportunities, the suit alleged.

The Lake View District won an initial ruling in Pulaski County Chancery Court, and as a result the legislature changed the formula in the 1995 session. Also, the legislature referred to the ballot a constitutional amendment that sets a minimum millage rate of 25 mills and takes other steps to equalize school funding. Arkansas voters approved the amendment in 1996.

Attorneys for Lake View said that the new state formula still didn't comply with constitutional mandates to equalize school funding, and that it failed to comply with the Pulaski Chancery Court order.

A trial that had been scheduled for mid-February has been avoided because of the new settlement.

Under the proposed settlement the suit would be with prejudice, which means it cannot be filed again. However, after two years Lake View can challenge any future legislative changes in the current formula, or the way the current formula is put into effect.

The settlement says that for two years no school district in Arkansas may be involuntarily annexed to another school district.

A legislative subcommittee voted in favor of the settlement, and a spokesman for the governor said he supported it. An association of school administrators has endorsed the agreement. Supporters of the settlement said that it would provide a period of stability that would benefit Arkansas schools.

The State Board of Education has approved it, although some members expressed concerns about the amount of fees sought by Lake View's attorneys. They submitted a request for $10.25 million in attorneys' fees. The Pulaski County chancery judge will hold a hearing February 26 to discuss the settlement and legal fees.

Several educators said they did not want the legal fees paid out of the Public School Fund, because the loss of that amount of money would have a negative impact on education.

State aid is the major source of revenues for Arkansas schools. Traditionally, state funds have accounted for about 62 percent of school funds, with local property taxes and federal aid accounting for the rest.

Spending on public schools is the single largest category in the state general revenue fund. Traditionally, about half of all state general revenues go to public schools.

New Degree Programs

At its February meeting the Department of Higher Education is scheduled to discuss a report on the productivity of new degrees at Arkansas' two-year and four-year colleges and universities.

Four new programs, out of a total of 23 new programs at four-year universities, produced fewer than three graduates each last year.

GETTING HAMMERED Prescott's Stacy Stockton took a beating, literally, Tuesday night against Fouke as the Wolverettes returned home for the first time in a month and only the second time in 1998. Still, though, the senior girls were more than the Lady Panthers could handle as they posted a 50-29 win in league play.