Court filings concerning PCSSD motion to enlarge Jacksonville North and South junior high schools, cross-district teacher retirement and employee health insurance issues, PCSSD strike issue, LRSD fourth quarter status report, and ODM budget concerns

Court of Appeals, order; District Court, Pulaski County Special School District (PCSSD) motion to enlarge Jacksonville North and South (junior high schools),District Court, two orders; District Court, pre-trial brief of Little Rock School District (LRSD), Pulaski County Special School District (PCSSD), and North Little Rock School District (NLRSD) on teacher retirement and employee health insurance issues; District Court, Pulaski County Special School District (PCSSD) prehearing brief; District Court, three orders; District Court, response of Joshua intervenors to Pulaski County Special School District's (PCSSD's) motion to enlarge Jacksonville North and South (junior high schools); Court of Appeals, amended certificate of service; District Court, order; District Court, response to the motion of the Joshua intervenors for reconsideration regarding the Pulaski County Special School District (PCSSD) strike issue; District Court, brief in response to the motion of the Joshua intervenors for reconsideration regarding the Pulaski County Special School District (PCSSD) strike issue; District Court, notice of filing, Little Rock School District (LRSD) fourth quarter status report addendum program planning and budgeting document for desegregation progress; District Court, notice of filing, Little Rock School District (LRSD) 1996-97 first quarter status report program planning and budgeting document for desegregation programs; District Court, motion for summary judgment by the Little Rock School District (LRSD), Pulaski County Special School District (PCSSD), and North Little Rock School District (NLRSD); District Court, brief in support of Little Rock School District (LRSD), Pulaski County Special School District (PCSSD), and North Little Rock School District (NLRSD) motion for summary judgment on the issue of teacher retirement matching; District Court, statement of material and undisputed facts with respect to the LRSD, Pulaski County Special School District (PCSSD), and North Little Rock School District (NLRSD) motion for summary judgment on the issue of teacher retirement matching; District Court, affidavit of Donald M. Stewart; District Court, Pulaski County Special School District (PCSSD) response to Joshua motion to request Office of Desegregation Monitoring monitoring or, in the alternative, for Pulaski County Special School District (PCSSD) to show cause; District Court, notice of filing, LRSD November program planning and budgeting tool; District Court, notice of filing, Arkansas Department of Education (ADE) project management tool; District Court, Pulaski County Special School District (PCSSD) objection to proposed Office of Desegregation Monitoring budget; District Court, Pulaski County Special School District (PCSSD) reply to response of Joshua intervenors to PCSSD's motion to enlarge Jacksonville North and South (junior high schools) The transcript for this item was created using Optical Character Recognition (OCR) and may contain some errors. UNITED ST ATES COURT OF APPEALS FOR THE EIGHTH CIRCUIT HAEL E. GANS lerk of Court U.S. COURT & CUSTOM HOUSE 1114 MARKET STREET ST. LOUIS, MISSOURI 63101 VOICE (314) 539-3600 AB!S (B00I 652-B671 http://www.wulaw.wustl.edu/8th.cir November 6, 1996 Mr. Christopher John Heller FRIDAY & ELDREDGE 2000 First Commercial Building 400 W. Capitol Avenue Little Rock, AR 72201 RECEVE NOV 8 ,996 t Desegregation Monl\on,1~ O!Me o ~- ~ ---- Re: 96-2047EALR L.R. School Dist. vs. Servicemaster Manag. Dear Counsel: Enclosed is a copy of an order entered today in the above case. jmh Enclosures cc: Joseph Steven Mowery John C. Everett Samuel Arnold Perroni William Henry Trice III Richard Wilson Roachell John W. Walker Norman J. Chachkin Philip K. Lyon M. Samuel Jones III Nelwyn L. Davis Tim C. Humphries Office of Deseg. Monitor Horace A. Walker Perlestra Hollingsworth Kenne~h G. Torrence Otis Henry Storey Petre's Stenograph Jim McCormack District Court Case Number: 82-CV-866 UNITED STATES COURT OF APPEALS FOR THE EIGHTH CIRCUIT No. 96-2047EALR L. R. School District, Appellant, v. Servicemaster Management, et al., Appellees. Appeal from the United States District Com:t for the Eastern District of Arkansas Upon review of the notice of appeal and appellant's opening brief, this Court has determined that this appeal was mistakenly captioned. The Clerk is directed to correct the case caption and provide the parties with a new service list. Appellant's counsel is directed to serve his opening brief upon those parties not previously served within seven days of the date of this order and provide the com:t with proof of service. Those appellees who have not previously filed responsive briefs may have to and including December 11, 1996 to file their briefs. Appellant's supplemental reply brief shall be due on or before December 27, 1996. November 6, 1996 Ordev:tc:r:J"~~ Rule 27;) Clerk, U.S. Court of~s, Eighth Circuit Novembez 5, 1996 Case Numbez: 96-2047 Distzict Couzt/Agency Case Numbez(s): 82-CV-866 LITTLE ROCK SCHOOL DIS'TRICT; Plaintiff - Appellant LORENE JOSHUA; Intezvenoz Plaintiff - Appellee SERVICEMASTER MANAGEMENT SERVICES; Intezvenoz below - Appellee ANNE MITCHELL ; BOB MOORE; PAT GEE; PAT RAYBURN; MARY J . GAGE; NORTH LITTLE ROCK CLASSROOM TEACHERS ASSOCIATION; PULASKI ASSOCIATION OF CLASSROOM TEACHERS; LITTLE ROCK CLASSROOM TEACHERS ASSOCIATION; ALEXA ARMS'TRONG; KARLOS ARMS'TRONG; ED BULLINGTON; KHAYYAM DAVIS; JANICE DENT; JOHN HARRISON; ALVIN HUDSON; TATIA HUDSON; MILTON JACKSON; LESLIE JOSHUA; STACY JOSHUA; WAYNE JOSHUA; KATHERINE KNIGHT; SARA MATTHEWS; BECKY MCKINNEY; DERRICK MILES; JANICE MILES; JOHN M. MILES; NAACP; JOYCE PERSON; BRIAN TAYLOR; HILTON TAYLOR; PARSHA TAYLOR; ROBERT WILLINGHAM; TONYA WILLINGHAM Intezvenoz Plaintiffs - Appellees V. NORTH LITTLE ROCK SCHOOL DISTRICT; LEON BARNES; SHERYL DUNN; MAC FAULKNER; RICHARD A. GIDDINGS; MARIANNE GOSSER; DON HINDMAN; SHIRLEY LOWERY; BOB LYON; GEORGE A. MCCRARY; BOB MOORE; STEVE MORLEY; BUDDY RAINES; DAVID SAIN; BOB STENDER; DALE WARD; JOHN WARD; JUDY WEAR; GRAINGER WILLIAMS; PULASKI COUNTY SPECIAL SCHOOL DIS'TRICT; STATE OF ARKANSAS; Defendants - Appellees OFFICE OF DESEGREGATION MONITOR; Claimant - Appellee HORACE A. WALKER; P.A. HOLLINGSWORTH; KENNETH G. TORRENCE; PHILIP E. KAPLAN; JANET PULLIAM; JOHN BILHEIMER Movant - Appellees DALE CHARLES ; ROBERT L . BROWN, SR. ; GWEN HEVEY .J:ACKSON; DIANE DAVIS; RAYMOND FRAZIER Plaintiffs - Appellees - V. PULASKI COUNfY BOARD OF EDUCATION; 0. G. JACOYELLI, Individually and as President of the Board of Education of the Little Rock School District; PATRICIA GEE, Individually and in her official Capacity as a Member of the Board of Education of the Little Rock Schood District, A Public Body; DR. GEORGE CANNON, Individually and in his Official Capacity as a Member of the Board of Education of the Little Rock School District, A Public Body; JOHN f-OORE, Individually and in his Official Capacity as a Member of the Board of Education of the Little Rock School District, A Public Body; DORSEY JACKSON, Individually and in his Official Capacity as a Member of the Board of Education of the Little Rock School District, A Public Body; DR. KATHERINE MITCHELL, Individually and in her Official Capacity as a Member of the Board of Education of the Little Rock School District, A Public Body; W. D. HAMILTON, Individually and in his Official Capacity as a Member of the Board of Education of the Little Rock School District, A Public Body; CECIL BAILEY, Individually and in his Official Capacity as a Member of the Pulaski County Board of Education, a Public Corporate; 11-IOMAS BROUGJITON, Individually and in his Official Capacity as a member of the Pulaski County Board of Education, a Public Corporate; DR. MARTIN ZDLDESSY, Individually and in his Official Capacity as a member of the Pulaski County Board of Education, a Public Corporate Defendants - Appellees November 5, 1996 jmh 96-2047 L.R. School Dist. v. Servicemaster Manag. Mr. Christopher John Heller FRIDAY & ELDREDGE 2000 First Commercial Building 400 W. Capitol Avenue Little Rock, AR 72201 Mr. Joseph Steven Mowery GIROIR & GREGORY Suite 1900 111 Center Street Little Rock, AR 72201 Mr. John C. Everett EVERETT & STILLS P.O. Box 1646 3822 N. Parkview Drive Fayetteville, AR 72702 Mr. Samuel Arnold Perroni THE PERRONI LAW FIRM, P.A. 801 W. Third Street Little Rock, AR 72201-2103 Mr. William Henry Trice III HOWELL & PRICE 211 Spring Street Little Rock, AR 72201 Mr. Richard Wilson Roachell ROACHELL & STREETT Suite 504 401 w. Capitol Little Rock, AR 72201 Mr. John W. Walker JOHN W. WALKER, P.C. 1723 Broadway Little Rock, AR 72206 Mr. Norman J. Chachkin NAACP LEGAL DEFENSE FUND 16th Floor 99 Hudson Street New York, NY 10013 Mr. Philip K. Lyon JACK & LYON 3400 TCBY Building 425 w. Capitol Avenue Little Rock, AR 72201 Mr. M. Samuel Jones III WRIGHT & LINDSEY 2200 Worthen Bank Building 200 W. Capitol Avenue Little Rock, AR 72201-3699 Mr. Nelwyn Leone Davis PULASKI COUN1Y ATTORNEY Suite 400 201 S. Broadway Little Rock, AR 72201 Mr. Tim C. Humphries ATTORNEY GENERAL'S OFFICE 200 Tower Building 323 Center Street Little Rock, AR 72201-2610 Office 0 Desegregation Monitor 510 Heritage West Building 201 E. Markham Little Rock, AR 72204 Mr. Horace A. Walker Second & Center Streets 518 Pyramid Place Little Rock, AR 72203-1448 Mr. Perlesta Arthur Hollingsworth HOLLINGSWORIB LAW FIRM 415 Main Street Little Rock, AR 72201 Mr. Kenneth G. Torrence 1721 Abigail Street Little Rock, AR 72204 Mr. Otis Henry Storey HOOVER & STOREY Suite 1100 111 Center Street Little Rock, AR 72201 Petre's Stenograph Court Reporter PETRE S1ENOGRAPH SERVICE 207 Spring Street Little Rock, AR 72201 Mr. Jim McCormack Clerk U.S. DIS'IRICT COURT, EASTERN ARKANSAS Room 402 600 W. Capitol Avenue Little Rock, AR 72201-3325 . . IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION LITTLE ROCK SCHOOL DISTRICT v. PULASKI COUNTY SPECIAL SCHOOL DISTRICT NO. 1, ET AL. NOV 1 :5 1996 PLAINTIFF DEFENDANTS MRS. LORENE JOSHUA, ET AL. KATHERINE KNIGHT, ET AL. INTERVENORS Office 01 Deseg;s9aton Monilcrina IJ\iTERVENORS PCSSD MOTION TO ENLARGE JACKSONVILLE NORTH AND SOUTH The Pulaski County Special School District ("PCSSD") for its motion states: 1. The PCSSD presently operates Jacksonville North Junior High School and Jacksonville South Junior High School. By order dated March 27, 1996, this Court approved the conversion of one of these junior high schools to be operated as a middle school housing grades six and seven and the other as a junior high school housing grades eight and nine. 2. After having gone through the appropriate public forum process, the PCSSD has determined to operate Jacksonville North as the middle school and Jacksonville South as the junior high school. 3. This reorganization adds grade six to the middle school and therefore necessarily substantially increases the number of seats necessary to house all of the students in the t wo reconfigured schools. Because of this, the PCS SD seeks the permission of this Court to add eight ,classrooms at Jacksonville South and three classrooms to what is presently Jacksonville North. 4. Any impacts upon the residual racial balance in the two reconfigured schools will be positive. WHEREFORE, the PCSSD prays for a further order of this Court authorizing the construction of these classrooms for the 1997-1998 school year. Respectfully submitted: WRIGHT, LINDSEY & JENNINGS 200 West Capitol Avenue Suite 2200 Little Rock, Arkansas 72201-3699 (501) 371-0808 By_-><------'-""?"'""9-..=-:.------'--"-~=---J,,c=->------- M. A 76060) a ski County ict CERTIFICATE OF SERVICE On November / 2--, 1996, a copy of the foregoing was served by U.S. mail on the following. Mr. John W. Walker John W. Walker, P.A. 1723 Broadway Little Rock, AR 72201 Mr. Christopher Heller Friday, Eldredge & Clark 2000 First Commercial Building Little Rock, Arkansas 72201 Ms. Ann Brown ODM Heritage West Bldg., Ste. 510 201 East Markham Street Little Rock, Arkansas 72201 Mr. Richard W. Roachell Roachell and Street First Federal Plaza 410 W. Capitol, Suite 504 Little Rock, Arkansas 72201 Mr. Timothy Gauger Assistant Attorney General 323 Center Street, Suite 200 Little Rock, Arkansas 72201 Mr. Stephen W. Jones 3400 TCBY Tower 425 West Capitol Avenue Little Rock, Arkansas 72201 - IN THE UNITED ST A TES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION LITTLE ROCK SCHOOL DISTRICT, * * Plaintiff, * * vs. * No. LR-C-82-866 * PULASKI COUNTY SPEC1AL SCHOOL * DISTRICT No. 1, ET AL., * * Defendant. * * MRS. LORENE JOSHUA, ET AL., * * Intervenor. * NOV 1 i 1996 Office of Desegregalion Monuormg FilcD U.S. DISTRICT COURT EASTERN Di STRICT ARKANSAS ;mv 1 21996 * KATHERINE KNIGHT, ET.AL., * JAMES W. McCORMACK, CLERK Bv:Q'.7.w~ '- ~EPCLERK * Intervenor. * * SERVICEMASTER MANAGEMENT * SERVICES, A Limited Partnership, * * Intervenor. * QRDER Pending before the Court are several motions filed by the parties concerning the effect of the State's new funding formula on the Settlement Agreement. See docket entries 2668, 2685, 2690, 2695, 2715, and 2737. Also before the Court are the State's Motions to Dismiss or, in the alternative, for Abstention [docket entries 2713 & 2771] and a Motion to Intervene by a number of school districts in the state [docket entry 2715]. The Court has determined that a conference with the parties and movants would be useful in determining the status of the issues involved and the Court's alternatives in dealing with the matter. For example, the Court believes it might be helpful to determine whether the issues of teacher retirement and employee insurance can be addressed without awaiting resolution of the Lakeview case. This will not be an evidentiary hearing. Therefore, the Court will hold a conference on Tuesday, November 19, 1996, beginning at 9:30 a.m. in Courtroom 3C (#305) of the U.S. Post Office and Courthouse Building. SO ORDERED this 12th day of November 1996. 2 NOV 1 5 1996 iWV 1 4 1996 Office of Desegregation M9nitormg IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION DEP CLERK , C, .....,_ :;,..-, . - - ..., . --~- -~---~ ..... ....... LITTLE ROCK SCHOOL DISTRICT, * * Plaintiff, * * vs. * No. LR-C-82-866 * PULASKI COUNTY SPECIAL SCHOOL * DISTRICT No. 1, ET AL. ; * * Defendant. * * MRS. LORENE JOSHUA, ET AL., * * Intervenor. * * KATHERINE KNIGHT, ET AL., * * Intervenor. * * SERVICEMASTER MANAGEMENT * SERVICES, A Limited Partnership, * * Intervenor. * QRDER The Court has received the proposed 1996-97 budget for the Office of Desegregation Monitoring. See attached letter and budget document. The parties may file any objections to the proposed budget within fifteen (15) calendar days from the date of en try of this Order. Af7\ DATED this _11__ day of November 1996. --uNITErfST A TES DIST rH!S cocu:<:F ,:: ;- :- - -J c; J '.),.::-.. : :<ET SHEET IN CC.,MPLIANCE w, l h nULE S8 Ai-JC/OR 79 (a) FRCP ~ ON II ( I 1 ( 9 fp 8Y 1C - ._ Office of Desegregation Monitoring United States District Court Eastern District of Arkansas Ann S. Brown, Federal Monitor November 13, 1996 The Honorable Susan Webber Wright U.S. District Court, Eastern District of Arkansas Little Rock, AR 72201 Dear Judge Wright: 201 East Markham, Suite 510 Heritage West Building Little Rock, Arkansas 72201 (501) 376-6200 Fax {501) 371-0100 The 1996-97 budget for ODM is attached for the parties' review and your approval. . TI1e format of our 1996-97 budget follows that of previous years, including annotation to explain revenue calculations, budget category definitions, 1995-96 budgeted and actual expenses by category, and the amount budgeted for each area in 1996-97. Most of the ODM expenditure categories for this year are budgeted comparably to last year. Any salary increases for ODM staff are 3.29%, which is the prevailing annual experience step increase on the three districts' salary scales. Again this year, I have chosen not to accept an increase in salary. You will note a marked increase in the Benefits category, due to the changes in the State's method of handling health insurance premiums and teacher retirement. These changes have similarly effected all three Pulaski County school districts, constituting a significant growth in this budget area. We have contained 1995-96 expenditures such that they were below the projected budget; once again, we have credited that difference proportionately to each of the school districts' pro rated contribution to our 1996-97 budget. If you or the parties should need any additional information, I will be happy to provide it. Sincerely yours, Ann S. Brown cc: All Counsel OFFICE OF DESEGREGATION 1996-97 BUDGET REVENUE 1995-96 1995-96 1996-97 BUDGET ACTUAL BUDGET State of Arkansas 200,000.00 200,000.00 200,000.00 LASO 154,276.00 154,276.00 223,889.00 Credit (see note below) 44,455.00 44,455 .00 19,197.00 NLRSD 55,510.00 55 ,510.00 80,121.00 Credi1 (see note below) 15,995.00 15,995.00 6,870.00 PCSSD 125,014.00 125,014.00 184,831 .00 Credit (see note below) 36,023.00 36,023.00 15,848.00 Interest 6,123.96 Total Revenue 631 273.00 637,396.96 730756.00 Note: Every budget cycle, ODM credits each distnct a pro rata proportion of the unspent amount of the previous year's budget. We apply this amount toward the current budget allocation. See Annotated 1996-97 Budget. EXPENDITURES 1995-96 1995-96 1996-97 BUDGET ACTUAL BUDGET Communications 7,870.00 7,641 .69 7,870.00 Dues and Fees 2,700.00 3,205.00 3,300.00 Eouipment 10,614.00 10,444.08 14,159.00 Food Services 250.00 204.98 250.00 Manaoement Services 3,000.00 292.50 3,000.00 Periodicals 500.00 453.84 500.00 Printino and Bindino 10,340.00 5,077.59 6,000.00 Prof. and Tech. Services 28,497.00 22,614.15 28,497.00 Rent 46,204.00 46,204.00 48,417.00 Repairs and Maintenance 1,231 .00 1,414.93 1,500.00 Resource Library 1,000.00 372.11 500.00 Salaries 444,854.00 425,981.98 468,904.00 Benefits 49 ,613.00 44,770.84 120,109.00 Staff Development 1,000.00 1,007.00 1,000.00 Supplies 7,750 .00 7,552.84 7,750 .00 Travel 15,850.00 18,244.12 19,000.00 Total Expenditures 631,273.00 595,481 .65 730,756.00 ANNOTATED ODM 1996-97 BUDGET REYE UE The Court's Interim Order of June 27, 1989 required that: ... [T]he amount previously ordered for the Pulaski County Educational Cooperative (Coop) [$200,000.00] shall be applied toward the budget of the office of the Metropolitan Supervisor... The balance of the budget will be apportioned among the school districts on a per pupil basis ... Eighth Circuit Order of December 12, 1990: ... [T]he office previously known as the Office of the Metropolitan Supervisor will be reconstituted as the Office of Desegregation Monitoring ... 10/1/95 % of Total 1996-97 Budget 1995-96 Credit 1996-97 Budget Enrollment Enrollment Allocation /Budget not spent) Payment LRSD 24.876 45.80 243,086.00 19.197.00 223.889.00 NLRSD 8.901 16.39 86,991 .00 6,870.00 80,121 .00 PCSSO 20.534 37.81 200.679.00 15,848.00 184,831.00 State of AR -0- -0- 200.000.00 -0- 200,000.00 Total 54,311 100.00 730,756.00 41 ,915.00 688,841.00 Step-by-step process used to determine districts' contributions to ODM 1995-96 budget: I. The State of Arkansas' contribution is subtracted from OD M's total budget: 730,756.00 200,000.00 530,756.00 2. Based on the previous year's October I enrollment, the districts are charged their pro rata share of ODM's budget (minus the State's contribution): LRSD 530,756.00 X 45.80 243,086.25 NLRSD 530,756.00 X 16.39 86,990.91 PCSSD 530,756.00 X 37.81 200,678.84 3. Each district is credited with its pro rata share of OD M's unspent 1995-96 budget: LRSD 243,086.25 -19,197.21 223,889.04 NLRSD 86,990.91 -6,869.92 . 80,120 .99 PCSSD 200,678.84 -15,848.18 184,830.66 4. Each district will contribute these amounts to ODM's 1996-97 budget: LRSD 223,889.00 NLRSD 80,121 .00 PCSSD 184,831 .00 Page 2 - EXPENDITURES Note: Definitions of expense categories are based on the Arkansas School Financial Accounting Manual. Communications: Services provided by persons or businesses to assist in transmitting and receiving messages or information. This category includes telephone services as well as postage machine rental and postage. 1995-96 Budget 1995-96 1996-97 Budgeted Expenditures Amount 7.870.00 7,641 .69 7,870.00 Dues and Fees: Expenditures or assessment for membership in professional or other organizations or associations or payments to a paying agent for services provided, such as conference registration fees. 1995-96 1995-96 1996-97 Budgeted Budqet Expenditures Amount 2,700.00 3,205.00 3,300.00 The bulk of the 1995-96 expenditures were for seminar and conference registration fees; membership renewals were for $510.00, including membership fees of $250.00 for joining the Greater Little Rock Chamber of Commerce. Equipment: Expenditures for the initial, additional, and replacement items or equipment, such as furniture and machinery. 1995-96 1995-96 1996-97 Budgeted Budqet Expenditures Amount 10.614.00 10,444.08 14,159.00 We will upgrade our computer hardware by replacing six computers which are out-dated, overloaded, and repeatedly breaking down, resulting in extensive down time, lost data, and repair expense. We will also replace a thermo-paper fax with a plain paper fax. We will add a color copier to help trim out-of-office copying expenses. Page 3 Food Services: Expenditures for food or preparation and serving of food, which may include catering. 1995-96 1995-96 1996-97 Budgeted Budoet Expenditures Amount 250.00 204.98 250.00 Management Services: Services performed by persons qualified to assist management either in the broad policy area or in general operations. This category includes consultants, individually or as a team, to assist the chief executive in conference or through systematic studies. 1995-96 1995-96 1996-97 Budgeted Budoet Expenditures Amount 3.000.00 292.50 3,000.00 Periodicals: Expenditures for periodicals and newspapers for general use. A periodical is any publication appearing at regular intervals of less than a year and continuing for an indefinite period. 1995-96 1995-96 1996-97 Budgeted Budget Expenditures Amount 500.00 453.84 500.00 Printing and Binding: Expenditures for job pnntmg and binding, usually according to specifications. This includes the design and printing of forms as well as printing and binding publications. 1995-96 1995-96 1996-97 Budgeted Budoet Expenditures Amount 10,340.00 5,077.59 6,000 .00 With last year's purchase of the Duplicating Management Program (DMP) and this year's purchase of a color copier, we will be able to do most printing in-house. The above budget is the annual cost of the DMP ($4,994.36) plus $1,000.00 for printing we cannot do in-house, such as letterhead and - envelopes. Page 4 Professional and Technical Services: Services which by their nature can be performed only by persons with specialized skills and knowledge. 1995-96 1995-96 Budoet Exoenditures 28,497.00 22,614.15 Arkansas Financial Services Temporary help/specialized services 1996-97 Budgeted Amount 28,497.00 23,497.00 5 000.00 28,497.00 The 1995-96 expenditures covered the services of three expert witnesses, a computer technologist, and additional office and administrative help. To date, ODM has not needed Arkansas Financial Services (AFS) to complete the terms of a previous agreement. However, because services ultimately may be required, we are electing to maintain the AFS agreement and, thus, have budgeted an allotment for AFS. Rent: Expenditures for leasing or renting land and buildings for both temporary and long-range use. 1995-96 1995-96 1996-97 Budgeted Budoet Exoenditures Amount 46,204 00 46 204.00 48 .417.00 According to the lease agreement negotiated in 1995, the 1996-97 rent will increase 4.7%. Repairs and Maintenance: Expenditures for repairs and maintenance services which restore equipment to its original state or are a part of a routine preventive maintenance program. This includes service contracts and contractual agreements covering the maintenance and operation of equipment and equipment systems. 1995-96 1995-96 1996-97 Budgeted Budget Expendilures Amounl 1,231 00 141493 1.500 00 Page 5 Resource Library: Expenditures for regular or incidental purchases of library books available for general use. 1995-96 1995-96 1996-97 Budgeted Budqet Expenditures Amount 1.00000 372.11 500.00 Salaries: Salaries are the amounts paid to employees who are considered to be in positions of a permanent or temporary nature. 1995-96 1995-96 1996-97 Budgeted Budqet Expenditures Amount 444 854 .00 425 .981 98 468,904 00 Most of the salary changes between 1995-96 and 1996-97 reflect a 3.29% increase, which is comparable to the annual step increase in the three Pulaski County school districts. Exceptions are noted below: Salaries: I Name of Emeloyee I 1995-96 Salary I 1996-97 Sala!}'. Ann Brown 1 104,1 64.00 Melissa Guldin 2 44.042.00 Gene Jones 3 33,031 .00 Norman Marshall 55,052.00 Marcie Powell 55,052.00 Horace Smith 55,052.00 Research Associate 4 26,000.00 Pollv Ramer 41,323.00 Linda Brvant 22,915.00 Jackie Banks 5 8,223.00 Total 444,854.00 1 Ann Brown declined to accept a salary increase for 1996-97. 2Melissa Guldin works 4/5 time. 104.1 64.00 45.490.00 47.815.00 56.863.00 56,863.00 56,863.00 26.000.00 42.683.00 23.669.00 8,494.00 468.904.00 I 3During 1995-96, Gene Jones increased his work time from 3/5 to 4/5 time. Therefore, his annual salary increased to $45,925.60, which included Gene's election to receive payment for annual insurance premiums in lieu of the insurance benefits. 4Position not filled. 5Jackie Banks works 25 hours per week. Page 6 Benefits: Benefits are the amounts paid in behalf of employees and not included in the gross salary, but arc over and above. Such payments are fringe benefit payments. 1995-96 1995-96 1996-97 Budgeted Budoet Expenditures Amount 49.613.00 44.770 84 120,1 09.00 Below is a breakdown by category of each employee's budgeted fringe benefits: Name Travel Social Hospital- Lile Dental Hospital Short Retire- Total Allowance Securitv ization Ins. lndemnitv Term ment Benefits Brown 1,800.00 5.423.88 1,968.00 44.1 6 188.64 60.96 62.88 12.715.68 22.264.20 Guldin 1.200.00 3,571 .79 1,968.00 44.1 6 188.64 60.96 62.88 5,602.80 12.699.23 Jones 960.00 3.731 .29 5,853.00 10.544.29 Marshall 1.200.00 4.441 .82 1,968.00 44.16 188.64 60.96 62.88 6,967.56 14,934.02 Powell 1,200.00 4 441 .82 1,968.00 44 16 188.64 60.96 62.88 6,967.56 14,934.02 Smith 1.200.00 4.441 .82 1,968.00 44.16 188.64 60.96 62.88 6.967.56 14,934.02 Research 600.00 2.034.90 1,968.00 44.16 188.64 60.96 62.88 3,192.00 8,1 51 .54 Ramer 3.265.25 1.968.00 44.16 188.64 60.96 62.88 5,121 .96 10.n1.85 Brvant 1.810.68 1,968.00 27.60 188.64 60.96 62.88 2.840.28 6.959.04 Banks 649.79 1,968.00 27.60 188.64 60.96 62.88 1.019.28 3.977 15 Total 8.1 60.00 33.813.04 17,712.00 364.32 1.697 76 548.64 565.92 57,247.68 120.109.36 The following changes have occurred since the 1995-96 budget year, and are reflected above in the 1996-97 budget figures: The State of Arkansas shifted the burden of the expense for health insurance from state funds to the employer, causing hospitalization to increase 227% per employee, from $50. l 0 per month in 1995-96 to $164.00 per month in 1996-97. Long-term disability (workman's comp) is no longer available as an employee benefit. Short-term disability increased 7%, from $4.90 per month in 1995-96 to $5.24 per month in 1996-97. The State of Arkansas shifted the total expense of teacher retirement from state funds to the employer. causing an additional 12% expenditure. Jackie Banks increased her working hours to 25 per week and, therefore, is now eligible to receive benefits. Gene Jones again elected to receive payment for annual insurance premiums in lieu of the insurance benefits. Page 7 Staff Development: Services performed by persons qualified to assist in enhancing the quality of the operation. 1995-96 1995-96 1996-97 Budgeted Budoet Exoenditures Amount 1 00000 1,00700 1 000.00 Supplies: Expenditures for all supplies for the operation, including freight and cartage. Amounts paid for material items of an expendable nature that are consumed, worn out. or deteriorated in use or items that lose their identity through fabrication or incorporation into different or more complex units or substances. 1995-96 1995-96 1996-97 Budgeted Budoet Exoenditures Amount 7,750.00 7,552.84 7,750.00 Travel: Expenditure for transportation, meals, hotel, and other expenses associated with traveling or business. Payments for per diem in lieu of reimbursements for subsistence (room and board) also are charged here. 1995-96 1995-96 1996-97 Budgeted Budoet Exoenditures Amount 15,850.00 18.244.12 19,000.00 The 1995-96 expenditures exceeded the budget as a result of the travel expenses for the three expert witnesses called by Judge Susan Webber Wright. The 1996-97 budget reflects the potential for additional expert witnesses to be called on behalf of the Joshua Intervenors. Page 8 ~ . J l . .:-: i~) us c,~rr;r ~T ~._11,.'.iT ~A~--: i r . ~7 ...._,~;,.J,''f1.S IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION LITTLE ROCK SCHOOL DISTRICT v. LR-C-82-866 PLAINTIFF PULASKI COUNTY SPECIAL SCHOOL DISTRICT NO. 1, ET AL MRS. LORENE JOSHUA, ET AL KATHERINE KNIGHT, ET AL NOV 1 8 1996 fL'-11) - Dffice of Dosegrega!Jon ;'w.in:il'Jiin~ DEFENDANTS INT ERVEN ORS INTERVENORS r. PRE-TRIAL BRIEF OF LITTLE ROCK SCHOOL DY~TRICT, PULASKI COUNTY SPECIAL SCHOOL DISTRICT AND NORTH LITTLE ROCK SCHOOL DISTRICT ON TEACHER RETIREMENT AND EMPLOYEE HEALTH INSURANCE ISSUES Introduction In its most recent decision concerning the responsibilities of State of Arkansas pursuant to the Settlement Agreement, this court said: "The state of Arkansas needs to focus on its obligation in the settlement to give the Pulaski County school districts special consideration to enable these districts to meet their numerous and burdensome obligations under the settlement. The court reminds the state of the Eighth Circuit's specific findings about the state's complicated and lengthy history of promotion of unconstitutional racial segregation which has led to this interminable litigation." Memorandum and Order, January 13, 1995, p. 16. Following a ~ulaski County chancery court determination that the Arkansas school finance system was unconstitutional, the state adopted the "Equitable School Finance System Act of 1995." Ark. Code Ann. 6-20- 301 rt seq. Under the new finance system, Arkansas school districts are required to fund certain programs which were previously funded by the state, including teacher retirement and health insurance. The state funds which were previously used to pay the full cost of each Arkansas school district's teacher retirement and employee health insurance obligations are now distributed through the new formula which pays districts according to their average daily membership. As a result, there exists a huge gap between the Pulaski County districts and the rest of the state with respect to the proportion of state funding for teacher retirement and employee heal th insurance. As with the recently decided workers' compensation issue, "[t]his disparity arose because the state's formula used enrollment rather than number of employees to determine how much money each district would receive." LRSD v. PCSSD, 83 F.3d. 1013, 1018 (8th Cir. 1996). The Pulaski County districts' claims for fair treatment with respect to state funding of teacher retirement and employee health insurance are no different than their recent successful claims for a proportional share of workers' compensation funding. The state must distribute funds "to the Pulaski County districts in the same percentage as it does statewide." Id. 2 II. Teacher Retirement contribution The state budgeted $134,500,000 to fund teacher retirement for the 1996-97 school year. This money was distributed through the new funding formula according to average daily membership, which bears no rational relationship to a particular district's costs for teacher retirement. As a result, the percentage of actual teacher retirement contributions funded statewide excluding Pulaski County is 102. 89 percent. See Exhibit 1. The average funding in the Pulaski County school districts is 74.66 percent. LRSD receives only 68.57 percent of the cost of its teacher retirement contributions. PCSSD and NLRSD receive only 78.89 percent and 82.94 percent respectively of their cost of teacher retirement contributions. In a recent case squarely on point concerning state distribution of funding for workers' compensation insurance, this court refused to allow the Pulas