The transcript for this item was created using Optical Character Recognition (OCR) and may contain some errors.  MAY 11 1999 - OFFICE OF DESEGREGATION MONlTORma IN THE UNITED ST A TES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION LITTLE ROCK SCHOOL DISTRICT, Plaintiff, vs. PULASKI COUNTY SPECIAL DISTRICT No. 1, et al., Defendants. MRS. LORENE JOSHUA, et al., Intervenors, KA THERINE KNIGHT, et al., Intervenors, No. LR-C-82-866 ORDER FILED U.S. DISTRICT COURT EASTERN DISTRICT ARKANSAS MAY t O 1999 JAMES1W. M\CORMACK, CLERK By: \_ ,~ U ['\ MO ,y' OEP CLERK Before the Court is the request of the Magnet Review Committee ("MRC") to increase the MRC office budget from $150,000 per year to $185,000 per year effective with the 1998-99 school year. The proposal now under consideration was communicated to the Court by the chair of the MRC in a letter dated January 6, 1999 (attached). After reviewing the matter, the Court is inclined to approve the request. The Eighth Circuit Court of Appeals established the MRC in 1987 to supervise the operations of the six magnet schools in the Little Rock School District ("LRSD"). The District - Court later allocated $150,000 per year to fund the operations of the MRC and its office. The 3261 Court determined that the State of Arkansas, through the Arkansas Department of Education - ("ADE"), should pay $75,000 of that allocation and each of the three Pulaski County school districts should pay $25,000. The MRC has never presented its office budget to the Court for annual approval; instead, the MRC staff has reconfigured line item allocations each year to total $150,000 and the MRC members have approved that budget each year. In the letter submission, the MRC chair explained that, over the years, normal inflation in the price of goods and services has strained the committee's $150,000 budget. Additionally, notes accompanying the budget explain that the restructuring of LRSD schools to accommodate the middle school initiative has required some substantial changes in the magnet schools. These changes necessitate an increase in advertising and recruitment costs, because brochures and other recruitment materials must be redesigned, printed, and distributed. The MRC further requests that the budget increase to $185,000 be shared by the ADE and the three districts in the same proportions as in the past, increasing the state's share (which is one-half) to $92,500 and each district's share (which is one-sixth) to $30,833 .33. The letter submission asserts that four MRC members voted for the increase, one abstained, and one was absent. In August of 1998, the MRC approved a budget for the 1998-99 school year for the usual total of $150,000 in an apparent failure to foresee the need for increases in the same year. The need for additional funds to flow quickly to the MRC leads the Court to believe the request for a budget increase to $185,000 for 1998-99 should be approved. Accordingly, the Court is inclined to approve MRC' s request for an increase in its 1998- 99 budget from $150,000 to $185,000. The Court will allow the parties until and including May 2 24, 1999, in which to object to MRC's request. Should no objections be filed within the time allowed, the Court will enter an Order providing that within one week, each of the parties is to pay the MRC the amount of money that represents the difference between what the parties have already paid for the 1998-99 MRC budget and the expanded 1998-99 MRC budget hereby approved. IT IS SO ORDERED this J'-day of 1.--- 1999. IA?.,"'~ '-BfIBFm(}"""-t UNITED STATES DISTRICT COURT fHIS DOCUMENT ENTERED ON DOCKET SHEET 1H XMPUA~ woi; ~if 58 ANDIOR ?9(1) fRCP )N b -I .. !Y .1C ~ 3 ?~{~j~~if~ .nna Grady Crear Executive Director ' C January 6, 1999 . 7 (501) 758-01156 ' , I", r  I. ;~;~;.~~j~~~~tt~:: ~.-  ii; I _.."S, , .,_~ ,./~--; ,.-- . :..- -:- -: .... :."'-~  .' *~ - ', -2- January 6, 1999 ~.. , I ~ :(.;'~ { - contribution $92,5001$7S,OOO, plus the additional $17,5001. The $35,000 additional funding request reflects a 231. lnaeose in the budgeted amount for the Magnet Review Committee. If you should need any additional information, I will be happy to provide it. Sincerely, ~~f Magnet ReYiew Committee .  . cc: ..;.,. ,. j J "\ .. , -~ : ;i  ? .; EXPENDITURES 1997-98 1997-98 1998-99 1998-99 ~ AQ1.!AL ~ ~ 8MQUNT FRINGE BENERTS 9,500 14,173.16 12,800 20,819.94 lndudes Social Security, Medicare, Teacher Retirement, Life Insurance, Health Insurance and Dental tn the approved budget, this figure was Input at a lower rate, due to the anticipated changes in teacher retirement, insurance, etc. The new figure most accurately reflects the costs for this line item. PRQFES~IQNAL ~ TECHNI~ Sc&Yl!:ES 11,800 16,925.68 12,000 1s.ooo Utilization of persons or organizations to provide specialized services. This category indudes costs of the lnterdistrict Magnet Schools Evaluation Annual Report, and the monthly travel allowance provided to the Executive Director of the Magnet Review Committee. - Because of additional professional services required as a resuh of providing updated recruiting tools /e.g., creative layout and design for brochures, radio/TV ads, etcJ and the Website master ad design which reflect changes in magnet schools, including new prindpals, updated curriculum, and the middle school transition, an increase in this line item is expected. MAJNTENA~E QF tQUleMcNT ~ VEHICLES 1,600 733.45 1.400 l,650 This covers the costs of service contracts for the office copier, the phone system and the IBM Personal Typing System in the MRC Office. Because of contrad cost increases since the equipment is over ten years old, an increase in expenses is expected. - - MRC EXPENDITURES !Continued) Poge2 1997-98 1997-98 1998-99 1998-99 ~ ACIIJAI. ~ ~ ~Q!.!MI RENTAL QE LANO ANO ~!.!!LOI~ 14,256 14.256 14,256 14.256 Monthly rent for the MRC Office is Sl.188.0011.296 square feet) and will remain that amount. TRAVEL QUT OF [)ISJRICT 6,000 7,984.05 3,500 6.000 This line item is used to send MRC members to the International Magnet Schools of America Conference and the NCSD Conference each year. The re~ amount is requested to bring travel funds back to the 1991-98 budgeted amount. POSTAGE 2.000 2,492.25 2,500 2,500 lndudes postage necessary to respond to parent inquiries. bulk mailings for recruitment purposes, and all other moilouts as necessary for the operation of the MRC office. No change in amount is requested. TELEPHONE 3,500 3,418.31 3,500 *4.225 lndudes monthly billings and long distance charges. Internet access monthly charges. and FAX expenses. The Internet access hos been added to the MRC's computer system. and the telephone/communication costs wil go up in this category. - MRC EXPENOOURES IContinuedl Poge3 1997-98 1997-98 1998-99 "1998-99 ~ ACil.!Al. aJ.!.C2QfI RfY!ill2 AMOUNI ADVERTISING 23,600 25,658 .35 23,595 36,900 The MRC is charged with the responsibility for recruiting students to magnet schools and M-to-M transfer. with new prindpals in place in several of the magnet schools. new curriculum information to be distributed, and the middle schools transition taking place. a reconfiguration of all advertising brochures, M-to-M flyers, videos and any other materials requiring modification is necessary. PRINTING ANO BINDING 2,800 2,560.25 1,200 3,200 This category ties in with - advertising expense. Even though the MRC Office copies whatever possible, voluminous jobs, such as application forms for magnet schools for enroll-ment. ore handled by outside agencies. Again, this amount has been increased to handle large proieefs related to advertising the changes in the schools' make-up, new prindpa/s, and curriculum changes. - MRC EXPENOOURES !Continued) Poge4 1997-98 1997-98 1998-99 1998-99 ~ ACil.!AI. .eJ.!.QQfI ~ AMQUNT QTHER PURCHASED SERVICES 3,000 5,025.68 2,000 4,000 lndudes any outside help necessary to finish a job for the MRC Office. This will also indude the cost for our fiscal agent. oue to increased meeting adiYities, Magnet Fair expenses. all other recruitment fundions, and contrad labor for incidental i<Jbs, this amount has been increased from the 1997-98 budget. SUPI\IES 1,800 1,872.36 1,500 1.405.06 Materials necessary for the operation of the Magnet Review Committee Office. PERIQDICALS 616 604.78 500 595 Used to purchase media of interest to the MRC and its activities le.g .. Education Week. Arkan~s Democrat-Gazette, Arkan~s Times, Magnet Schools of America materials!. Also includes MSA yearly membership fee to obtain a reduced rote for the MSA Conference in the spring. The amount requested hos been adiusted to keep in line 'Mfh the 1997-98 actual expenses. MRC EX?ENQIIURB IConttnuedl 1997-98 1997-98 1998-99 a.u..coo: ~ a.u..coo: CAPIT Al Olffi.AY 1,500 733.45 500 This category is used for any major expense for equipment for the MRC Office, such OS a copier, computer. or office furniture. with the approved 1998-99 budget in August, the MRC was planning not to make any major purchases for the office. The copy machine and the telephone system are over ten years old. Some expenses are anticipated for this category. TOT AL EXPENDITURES 81,972 96,437 .77 79,251 SALARIES ~ ZQ.7~9,00 7Q749 TOTALS 150,000 167. 186.77 150,000 NOTE: Salary increases will be determined later in the year. ofter final negotiations ore completed. and district salary increases ore established. At that time, it will be determined if. and how much. an increase can be incorporated into the budget. Page5 1998-99 ~ AMO!.!NI *3,700 114,251 70,749 185,000 ... IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION LITTLE ROCK SCHOOL DISTRICT V. LR-C-82-866 PULASKI COUNTY SPECIAL SCHOOL DISTRICT NO. 1, ET AL MRS. LORENE JOSHUA, ET AL KATHERINE KNIGHT, ET AL MOTION FOR AN ORDER DIRECTING THE STA TE RECEIVED MAY 1 2 1999 OfflCE OF DESEGREGATION MONITORING PLAINTIFF DEFENDANTS INTER VEN ORS INTERVENORS TO DISTRIBUTE THE DISTRICTS' TEACHER RETIREMENT AND HEALTH INSURANCE DAMAGES For their motion, the Little Rock School District (LRSD), North Little Rock School District (NLRSD) and the Pulaski County Special School District (PCSSD) (the "Districts") state: 1. On February 18, 1997, this Court found that the state changed its method of funding the teacher retirement program to the detriment of the districts and in violation of the settlement agreement. This Court made the same finding with respect to the health insurance matching program on April 22, 1997. On July 1, 1998 the Eighth Circuit Court of Appeals affirmed this Court's decisions with respect to teacher retirement and health insurance and directed this Court to decide what relief would be appropriate for the districts. 2. After a hearing, all of the other parties agreed to accept the state's proposed methodology for calculating damages. That methodology is set forth in Court's Exhibit 504. See - Exhibit A to "Motion for an Order Directing the State to Distribut the Districts' Undisputed Teacher Retirement and Health Insurance Damages," filed February 9, 1999. 3. On February 9, 1999 the districts asked the Court to order the state to pay the undisputed amount shown in Exhibit 504 for the 1996-97 and 1997-98 school years. On March 4, 1999, this Court entered the requested order. The districts' efforts to reach an agreement with the state for payment for the 1998-99 school year and future years have been unsuccessful. The districts must therefore seek an order from this Court requiring those payments. 4. Beginning with the 1999-2000 school year, the state should be ordered to reimburse the districts each year on the same monthly schedule as equalization funding using prior year average participation numbers and current state minimum required contribution numbers, with adjustments to be made in June of each year using current year actual participation numbers. - For the 1998-99 school year, the state should be ordered to immediately pay the districts the amount necessary to bring it into compliance with this paragraph. The districts have agreed that the total amount of damages calculated according to the methodology set forth in Court's Exhibit 504 should be distributed each year as follows: 60% to LRSD, 30% to PCSSD and 10% to NLRSD. 5. There remain issues to be resolved by this Court, including the issue of prejudgment interest and the issue of whether the state should be required to pay the districts 100% of each district's costs for teacher retirement and health insurance or the average percentage of actual costs received by the other school districts in the state. It is not necessary for the Court to resolve those issues at this time in order to provide the relief the districts seek in this motion. 2 I , WHEREFORE, the districts pray that the state be ordered to immediately pay the districts' damages for the 1998-99 school year calculated in accordance with Court's Exhibit 504 subject to an adjustment in June, 1999; and, using the methodology in Court's Exhibit 504, to reimburse the districts in future years on the same monthly schedule as equalization funding using prior year average participation numbers and current year state minimum required contribution numbers, with adjustments to be made each June based on current year actual participation numbers; and that the districts be awarded interest, costs, attorneys' fees and all other just and proper relief to which they may be entitled. PULASKI COUNTY SPECIAL SCHOOL DISTRICT WRIGHT, LINDSEY & JENNINGS 200 NationsBank 200 West Capitol Avenue Little Rock, AR 72201 501-371-0808 Respectfully submitted, LITTLE ROCK SCHOOL DISTRICT FRIDAY, ELDREDGE & CLARK 2000 Regions Bank Bldg. 400 West Capitol Avenue Little Rock, AR 72201 501/376-2011 3 NORTH LITTLE ROCK SCHOOL DISTRICT JACK, LYON & JONES 3400 TCBY Tower 425 Capitol Avenue Little Rock, AR 72201 501-375-1122 CERTIFICATE OF SERVICE I certify that a copy of the foregoing has been served on the following on this 11 th day of May, 1999: Mr. John W. Walker JOHN WALKER, P.A. 1723 Broadway Little Rock, AR 72206 Mr. Richard Roachell Roachell Law Firm 401 West Capitol, Suite 504 Little Rock, AR 72201 Ms. Ann Brown Desegregation Monitor Heritage West Bldg., Suite 510 201 East Markham Street Little Rock, AR 72201 Mr. Timothy G. Gauger Office of the Attorney General 323 Center Street 200 Tower Building Little Rock, AR 72201 4 1 Margie L. Powell Associate Monitor DISCIPLINARY SANCTIONS IN THE NORTH LITTLE ROCK SCHOOL DISTRICT M.i\Y l ::J 1999 May 19, 1999 Office of Desegregation Monitoring United States District Coun Little Rock, Arkansas Ann S. Brown Federal Monitor 'A ' ;:- ... I\' ., ... .J 1v,~~ ; ; ,. -~c0c., _. , ,....,, c -- .  - .. ~J7,:1 \\,,.1(\ . -." , By: I - -  1(\ Polly Ramer Office Manager IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION RECEIVED MAY 2 7 1999 OFFICE OF DESEGREGATION MONITORING LITTLE ROCK SCHOOL DISTRICT PLAINTIFF v. No. LR-C-82-866 PULASKI COUNTY SPECIAL SCHOOL DISTRICT NO. 1, et aL DEFENDANTS ADE'S RESPONSE TO THE DISTRICTS' "MOTION FOR AN ORDER DIRECTING THE STATE TO DISTRIBUTE THE DISTRICTS' TEACHER RETIREMENT AND HEALTH INSURANCE DAMAGES" In this motion the Districts ask for immediate payment of their teacher - retirement and health insurance damages for the 1998-99 school year. To date those payments have not been made, and no "immediate" payment should be ordered, for two reasons. First, no calculations for FY 1999 payments can be made, even under the meH1.0dology set fort.'h in Court's Exl-dbit 504, because the information necessary to calculate the retirement and health insurance "remedy'" for FY 1999 is not yet available and will not be available until at least the end of FY 1999. The methodology set forth in Exhibit 504 requires, among other things, each District's and the total statewide health insurance costs for all school districts for the entire fiscal year. For FY 1999, this information will not be available until some time after the fiscal year has concluded. Further, the methodology set forth in Exhibit 504 also requires that retirement and 1 health insurance costs attributable to ODM employees for the entire fiscal year be excluded from the calculation. To date LRSD has not provided that information to ADE for FY 1999, and that information will not be available until after the fiscal year has ended. Second, this Court has before it issues concerning the calculation of the appropriate "remedy'' that should be resolved before any further payments to the Districts are ordered. In addition to the Districts' baseless claims that they are entitled to prejudgment interest and to "damages" that would result in payments to them in excess of 100% of their retirement and health insurance costs, the Districts are apparently still not satisfied with the source data that forms the basis of the calculations set forth in Exhibit 504. See the Districts' "Motion for an Order Directing the State to Distribute the Districts' Undisputed Teacher Retirement and Health Insurance Damages," filed February 9, 1999, in which the Districts state that they believe Exhibit 504 "should be revised a second time to reflect better information obtained by the Districts concerning their actual teacher retirement and health insurance costs." In short, the Districts continue to dispute various issues concerning the appropriate "remedy'' and no further payments should be ordered until those issues have been resolved by this Court 2 Respectfully Submitted, MARK PRYOR Attorney General Assistant A y General 323 Center Street, Suite 200 Little Rock, Arkansas 72201 (501) 682-2007 Attorneys for Arkansas Department of Education CERTIFICATE OF SERVICE I, Timothy Gauger, certify that on May 25, 1999, I caused a copy of the foregoing document to be served by first class U.S. Mail on the following person(s) at the address(es) indicated: M.SamuelJones,m Wright, Lindsey & Jennings 2000 NationsBank Plaza 200 W. Capitol Little Rock, AR 72201 John W. Walker John Walker, P.A. 1723 Broadway Little Rock, AR 72201 Christopher Heller Friday, Eldredge & Oark 2000 First Commercial Bldg. 400 W. Capitol Little Rock, AR 72201 Stephen W. Jones Jack, Lyon & Jones 3400 TCBY Tower 425 W. Capitol Little Rock, AR 72201 3 Richard Roachell 401 W. Capitol, Suite 504 Little Rock, AR 72201 Ann Brown Office of Desegregation Monitoring 201 E. Markham, Ste. 510 Little Rock, AR 72201 4 IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION RECEIVED JUN l 1999 OFFICE OF DESEGREGATION MONITORJNG LITTLE ROCK SCHOOL DISTRICT PLAINTIFF v. No. LR-C-82-866 PULASKI COUNTY SPECIAL SCHOOL DISTRICT NO. 1, et al. DEFENDANTS NOTICE OF FILING In accordance with the Court's order of December 10, 1993, the Arkansas Department of Education hereby gives notice of the filing of ADE' s Project Management Tool for May, 1999. Respectfully Submitted, MARK PRYOR Attorney General Assistant Att e General 323 Center Street, Suite 200 Little Rock, Arkansas 72201 (501) 682-2007 Attorney for Arkansas Department of Education IN THE UNITED ST ATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION LITTLE ROCK SCHOOL DISTRICT, ET AL PLAINTIFFS V. NO. LR-C-82-866 PULASKI COUNTY SPECIAL SCHOOL DISTRICT, ET AL DEFENDANTS MRS. LORENE JOSHUA, ET AL INTERVENORS KATHERINE W. KNIGHT, ET AL INTERVENORS ADE'S PROJECT MANAGEMENT TOOL In compliance with the Court's Order of December 10, 1993, the Arl<ansas Department of Education (ADE) submits the following Project Management Tool to the parties and the Court. This document describes the progress the ADE has made since March 15, 1994, in complying with provisions of the Implementation Plan and itemizes the ADE's progress against timelines presented in the Plan. IMPLEMENTATION PHASE ACTIVITY I. FINANCIAL OBLIGATIONS A Use the previous year's three quarter average daily membership to calculate MFPA (State Equalization) for the current school year. 1. Projected Ending Date Last day of each month. August - June. 2. Actual as of May 31 , 1999 Based on the information available at April 30, 1999, the ADE calculated the Equalization Funding for FY 98/99, subject to periodic adjustments. 8. Include all Magnet students in the resident District's average daily membership for calculation. 1 . Projected Ending Date Last day of each month, August - June.  This project was supported in part by a Digitizing Hidden Special Collections and Archives project grant from The Andrew W. Mellon Foundation and Council on Library and Information Resources.