Published Online: December 4, 2012
Published in Print: December 5, 2012, as Districts Keep Surplus, Ark. High Court Rules

News in Brief

Districts Keep Surplus, Ark. High Court Rules

School districts that collect more in property taxes than state-mandated school funding levels can keep the money, a sharply divided Arkansas Supreme Court ruled last week in a decision that top officials said threatened reforms intended to provide equitable education funding across the state.

The high court ruled 4-3 that state education officials cannot withhold excess money from the Eureka Springs and Fountain Lake school districts, where higher property-tax collections pushed the districts above total school funding levels set by state law. Chief Justice Jim Hannah wrote the dissent, warning the decision "obliterated" a school funding system that legislators hammered out to end a long-running court case.

Vol. 32, Issue 13, Page 5

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