School fund withholding goes to court

Justices question legality

Posted: October 5, 2012 at 12:26 a.m.

Arkansas Supreme Court justices quizzed attorneys for close to an hour Thursday morning on the legality of the Arkansas Department of Education withholding $2.2 million in property tax funds from the Fountain Lake and Eureka Springs school districts in the name of “recouping over payments.” The districts refused to hand the money over to the state, as requested, after they collected more money locally from a statewide 25-mill tax designated for school maintenance and operations than other districts did in the 2010-2011 school year.

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Arkansas, Pages 9 on 10/05/2012. Note: A correction has been appended to this story since its original publication.