Eureka Springs School District celebrates court victory over state Education Department

September 22, 2011|by Steve Grant, KY3 News | sgrant@ky3.com

EUREKA SPRINGS, Ark. -- The Eureka Springs School district went by the book -- and the numbers -- and won an important court case this week. A judge ruled the little school system does not have to turn over $825,000 that the Arkansas Education Department considered a tax surplus. His decision said it’s unconstitutional for the state to keep locally collected property taxes for education.

The decision was music to the ears of faculty and staff who've endured pay cuts and costlier healthcare benefits to balance this year's school budget.

“As of right now, things are looking up, and we feel good about Judge Fox's ruling,” said Middle School Principal Cindy Holt.

The Arkansas Education Department unsuccessfully argued Eureka Springs should share its wealth with other districts that are struggling to meet educational needs.

“You read tax code all the time. From where you sit, was this a no brainer?” a reporter asked.

“Yes, I thought it was,” said Rusty Windle, outgoing president of the Eureka Springs School Board.

Windle is also a certified public accountant and helped shape the district's financial arguments.

“From our standpoint, there wasn't anything that allowed them to take this money and that was our position from the beginning,” he said.

The current school funding formula calls for spending $6,000 per year per student. Eureka Springs takes in $7,300 per student per year. According to the education department, that makes it a rich district. Local school leaders say, however, that's not the real picture. Three out of four elementary schools here receive free or reduced-price lunches.

The district’s new $10 million high school is now under construction and separately financed by local taxpayers, which was a vote of confidence in growing academic progress.

“Most of the districts surrounding us got state help for additions and expanding, and we didn't get a penny,” said Windle.

It’s another lesson in fairness that the district believes the state might want to learn.

State education officials have 30 days to appeal the judge’s ruling. Eureka Springs school leaders say they won't be surprised if the agency asks the Legislature to give them the authority to withhold the money in the future.

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