Some school districts to get tax windfall; 14 must repay excess
Posted on Tuesday, May 13, 2008
The state Department of Education will pay millions of dollars to several Northwest Arkansas school districts in the coming months to align with a 2007 school-funding law.
According to preliminary figures, Springdale will receive $ 1. 2 million, the most of any school district in the region. Bentonville will get $ 1. 18 million, Fayetteville will get $ 1 million, and Rogers will get $ 973, 000.
Little Rock will receive $ 1. 7 million, the most in the state.
Throughout the state, school districts that did not collect at least 98 percent of taxes owed to them will receive payments to bring funding up to that level. Districts that collected more than 98 percent owe the state money.
Preliminary figures show 14 districts owe the state money, including Van Buren, Mountainburg and Mulberry.
The state informed the districts of its calculations in April, and district financial representatives were to confirm the figures Monday, Ted Moore, budget manager of the Arkansas Department of Education, said last week.
If preliminary figures are accurate, the state will repay a total of $ 20. 7 million and receive payments totaling $ 1. 57 million.
Bentonville Finance Director Sterling Ming said the district sent a revised sum to the state, claiming the state owed only $ 990, 000, which is $ 190, 000 less than the state’s original estimate.
The state collects 98 percent of the first 25 mills of property taxes, which is redistributed as education funding. A mill generates one-tenth of a cent for each dollar of appraised value. In Ar- kansas, property is taxed at 20 percent of appraised value.
Most counties have some taxpayers who won’t pay. Bentonville has consistently had a 95 percent collection rate, but paid the state at the 98 percent rate, Ming said.
The change in funding policy means the state will repay the difference.
“For years, many districts felt like 98 percent is not a good calculation because we never collect 98 percent,” he said.
Springdale’s calculations were just $ 500 less than the state’s, assistant superintendent Allen Williams said.
Shortfalls in tax collections made it difficult to draft a budget in the past, he said. As a result, most districts used conservative projections of between 90 percent and 93 percent collected. “This has been a traditional thing over years and years,” he said. “I don’t know that you ever get 100 percent collection.”
To contact this reporter: eblad@arkansasonline. com
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