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Arkansas asks Eureka Springs School District to send excess funds from local property taxes

November 23, 2010|by KY3 News

EUREKA SPRINGS, Ark. -- The state Department of Education says Eureka Springs is a wealthy district and must give the state about $825,000 a year to distribute to poorer school districts.  The state sent a letter to the school district and three other wealthy districts last week asking for checks by next June 15. 

The Arkansas Constitution says 25 mills is the minimum rate of property tax for maintenance and operation of schools, and the state provides other funding.  To reach the $6,023 per-pupil funding amount, most districts get state money on top of the money raised from the property taxes.

Eureka Springs School District's 25-mill property tax brings in $7,291 per student.  Since that's more than the state's per-pupil target, the state asks for the extra amount.   The other wealthy districts are Armorel, West Side and Fountain Lake.

The letter from the state stunned Eureka Springs School District leaders.

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The Associated Press contributed to this report.


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