The transcript for this item was created using Optical Character Recognition (OCR) and may contain some errors. EDWARD L. WRIGHT (1903 - 1077) ROBERTS . LINDSEY (1013 - 1001) ISAAC A. SCOTT. JR. JOHN G. LILE WRIGHT, LINDSEY & JENNINGS LLP ATTORNEYS AT LAW JOHN 0 . DAVIS JUDY SIMMONS HENRY KIMBERLY WOOD TUCKER RAY F. COX , JR. GORDON S. RATHER, JR. TERRY L. MATHEWS DAVID M. POWELL ROGER A . GLASGOW C. DOUGLAS BUFORD . JR . PATRICK J . GOSS ALSTON JENNINGS, JR . JOHN R. TISDALE KATHLYN GRAVES M, SAMUEL JONES Ill JOHN WILLIAM SPIVEY Ill LEE J. MULDROW N.M. NORTON CHARLES C. PRICE CHARLES T . COLEMAN JAMES J . GLOVER EOWIN L. LOWTHER, JR . CHARLES L . SCHLUMBERGER WALTER E. MAY GREGORY T. JONES H. KEITH MORRISON BETTINA E. BROWNSTEIN WALTER McSPADDEN ROGER 0 . ROWE NANCY BELLHOUSE MAY Mr. John Walker John Walker, P.A. 1723 Broadway Little Rock, Arkansas 72206 Ms. Ann Brown ODM Heritage West Building, Suite 510 201 East Markham Little Rock, Arkansas 72201 Mr. Richard Roachell Roachell Law Firm 401 W. Capitol, Suite 504 Little Rock, Arkansas 72201 RE: PCSSD Dear Counsel and Ms. Brown: 200 WEST CAPITOL AVENUE SUITE 2200 LITTLE ROCK, ARKANSAS 72201 3699 (501) 371 -0808 FAX (501) 376-9442 WEBSITE: www .wlj .com OF COUNSEL ALSTON JENNINGS RONALD A. MAY M, TODD WOOD Writ er 's Direct Dial No . 501 -212 - 1273 mJonesCwlJ .com October 12, 1999 Mr. Christopher Heller Friday, Eldredge & Clark TROY A. PRICE PATRICIA A . SIEVERS JAMES M. MOODY, JR. KATHRYN A . PR YOR J . MARK DAVIS CLAIRE SHOWS HANCOCK KEVIN W. KENNEDY JERRY J . SALLINGS FRED M. PERKINS 111 WILLIAM STUART JACKSON MICHAEL 0 . BARNES STEPHEN R. LANCASTER JUDY ROBINSON WILBER BETSY MEACHAM KYLE R. WILSON C. TAO BOHANNON DONS. McKINNEY MICHELE SIMMONS ALLGOOD KRISTI M. MOODY J. CHARLES DOUGHERTY M. SEAN HATCH PHYLLIS M. McKENZIE ELISA MASTERSON WHITE JANE M. FAULKNER ROBERT W. GEORGE J. ANDREW VINES JUSTIN T. ALLEN R. MARGARET DOBSON 400 W. Capitol, Suite 2200 Little Rock, Arkansas 72201 Mr. Stephen W. Jones Jack, Lyon & Jones 3400 TCBY Tower 425 West Capitol Avenue Little Rock, Arkansas 72201 Mr. Timothy Gauger Assistant Attorney General 323 Center Street, Suite 200 Little Rock, Arkansas 72201 f1CT 1' -1 1cog. .., V , v v .CffiCECf DESffiRffiATlOH .~NrmruM; Enclosed is a copy of the Districts' reply to ADE's response to the Districts' motion for prejudgment interest which is being filed today. MSJ/ao Encl. 132537-v1 Cordially, WRIGHT, LINDSEY & JENNINGS LLP ~:~,Ill IN THE UNITED STATES DISTRICT COURT - _EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION LITTLE ROCK SCHOOL DISTRICT V. NO. LR-C-82-866 PULASKI COUNTY SPECIAL SCHOOL DISTRICT NO. 1, ET AL. MRS. LORENE JOSHUA, ET AL. KATHERINE KNIGHT, ET AL. THE DISTRICTS' REPLY TO ADE'S RESPONSE TO THE DISTRICTS' MOTION FOR PRE-JUDGMENT INTEREST PLAINTIFF DEFENDANTS INTERVENORS INTERVENORS The State opposes payment of pre-judgment interest on two grounds. It resists first because technically "no judgment" has been entered. The fact remains, however, that the Districts were compelled to resort to the Court seeking payment of the teacher retirement and health insurance benefits due for 1998-1999. That motion was filed on May 11, 1999, and the State responded on May 25, 1999, and in that response the State resisted making payment. Indeed, the State did not finally distribute the requested funds until September of 1999. That the State technically, and finally, made these payments before entry of an actual judgment is immaterial. The fact remains that resort to the Court was necessary to obtain the funds and, absent some consequence to the State, such as pre-judgment interest, the State has no incentive to make such payments on a timely basis but, rather, unfairly benefits by delaying payment so long as it can arguably do so. 132185-v1 The State further resists on the notion that Exhibit 504 requires "full-year data" before the State can make any calculation of any kind. This argument is plainly nonsense. As Exhibit 504 is structured, it is simply a mathematical equation into which any data obtained at any time can be inserted to arrive at an outcome. At bottom, the State's argument is really that they do not wish to activate Exhibit 504 until they have every last bit of data in hand so that they can delay payment for as long as possible. Further, while the Districts did agree to use Exh,bit 504 for their darnage calculations, they did not agree to wait until three months after the end of the fiscal year for the damages to in fact be calculated. That is precisely the thrust of the other aspect of the Districts' motion, still before the Court, wherein they seek payment "on the same monthly schedule as equalization funding using prior year average participation numbers and current state minimum required numbers, with adjustments to be made in June of each year using current year actual participation numbers." (ADE's Response dated August 19, 1999, at page 1.) To pay in this fashion would be no different from the current method pursuant to which M to M payments are made. Payments are made by the State on a monthly basis and then adjusted at the end of the year to account for any actual variances occasioned by the Lise of estimated participation. The bottom line remains that these three districts are required to make their own teacher retirement and health insurance payments on a monthly basis and the State should not be allowed to profit at the expense of the Districts by, in some instances, making payment more than a year after the initial payments are made by the Districts. 132185-v1 2 Accordingly, this Court should award pre-judgment interest to partially - compensate the three Pulaski Districts for the delay in making the 1998-1999 payments and should grant the Districts' motion dated May 11, 1999, to require future payments to be made on a monthly schedule. Respectfully submitted, WRIGHT, LINDSEY & JENNINGS LLP 200 West Capitol Avenue, Suite 2200 Little Rock, Arkansas 72201-3699 (501) 371-0808 FAX: (501) 376-9442 By--'~,,...::;.~=---~__:;:::;-~-----Special CERTIFICATE OF SERVICE On October I 2-, 1999, a copy of the foregoing was served by U.S. mail on each of the following: Mr. John W. Walker John W. Walker, P.A. 1723 Broadway Little Rock, Arkansas 72201 Mr. Christopher Heller Friday, Eldredge & Clari< - 2000 First Commercial Building Little Rock, Arkansas 72201 Ms. Ann Brown ODM Heritage West Building, Suite 510 201 East Markham Street - Little Rock, Arkansas 72201 132185-v1 3 Mr. Richard W. Roachell Roachell and Street _ First Federal Plaza 401 West 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 132185-v1 4 IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DMSION LITTLE ROCK SCHOOL DISTRICT, * Plaintiff, * vs. * No. LR-C-82-866 * PULASKI COUNTY SPECIAL SCHOOL * DISTRICT NO. 1, et al., * R Defendants, * * MRS. LORENE JOSHUA, et al., * Intervenors, * * FILED U.S. DISTRICT COURT EASTERN DISTRICT ARKANSAS OCT t. 5 f999 C .V~ OCT 18 1999 (rJfFICE OF KATHERINE KNIGHT, et al., * flJl!SHfflRiATION MONITORING Intervenors. * ORDER Before the Court is the request of the Magnet Review Committee ("MRC") for approval - of the interdistrict magnet schools' final budget for the 1998-1999 school year. The MRC communicated the final budget to the Court in a letter dated June 30, 1999 (attached). The letter also contains a proposed budget for the 1999-2000 school year; however, the Court will address the proposed budget in a separate Order. The Court will allow the parties to and including 10 days from entry of this Order to object to MRC's final budget for 1998-1999. Should no objections be filed within the time allowed, the Court will enter an Order approving the budget. ' _./k-- IT IS SO ORDERED THIS /.:; DAY OF OCTOBER, 1999 CHIEF JUDGE UNITED STATES DISTRICT COURT rHIS DOCUMENT ENTERED ON DOCKET SHEET IN COMPUAN~i:W?:~ 58 AND/OR 79(a) FRCP OH I I SJ , l!JV tt::::: ' Magnet Review Committee 1920 North Main Street, Suite 101 North Little Rock, Arkansas 72114 (501) 758-0156 {Phone} (501) 758-5366 {Fax} magnet@magnetschool.com {E-mail} June 30, 1999 The Honorable Susan Webber Wright Judge, U. S. District Court Eastern District of Arkansas 600 West Capitol Suite 302 Little Rock, AR 7220 l Dear Judge Wright: At its June 22, .1999 special-called meeting, the Magnet Review Committee, by formal motion and 4-0 vote (North Little Rock and Joshua lntervenors representatives were not present), approved the interdistrict magnet schools' actual budget for the six original magnet schools for the 1998-99 school year (Draft l ). FINAL 1998-99 STIPULATED ORIGINAL MAGNET SCHOOLS BUDGET: The total amount budgeted, $20,146,910, is based on a per pupil expenditure of $5,127.00, calculated from an average third-quarter enrollment of 3,929.86 students. This budget reflects an increase of $473.00 per student over the 1997-98 budget, with the third year of the five-year proposed program improvement plan included. This final 1998-99 budget reflects actual figures and takes into account the variables (teacher retirement and health insurance changes) that were uncertain when the proposed budget was submitted in June, 1998. As you know, in correspondence dated May 7, 1999, the Magnet Review Committee requested a change in the magnet school grade configurations beginning with the 1999- 2000 school year. As described in that May 7, 1999 letter, the changes result in an additional 132 magnet school seats. At its June 22, 1999 meeting, the Magnet Review Committee approved the proposed budget for the 1999-2000 school year for the six original magnet schools which reflected costs associated with the additional seats (Draft 1 ). PROPOSED 1999-2000 STIPULATED ORIGINAL MAGNET SCHOOLS BUDGET: The total proposed budget for the 1999-2000 school year is $22,941,363, which results in a per-pupil expenditure of $5,648 and an increase of $521.00 per student over the 1998-99 actual budget. Salary negotiations are in progress, and it should be noted that these negotiations may have an impact on the 1999-2000 proposed budget. It is the intention of the Magnet Review Committee, therefore, to submit this budget with the recognition that some flexibility may be necessary. The Magnet Review Committee respectfully requests the Court's review and approval of the 1998-99 finalized budget, as well as the proposed 1999-2000 budget, both attached herewith. "Pursue the Possibilities of Magnet School Enrollment" The Honorable Susan Webber Wright -2- June 30, 1999 The Magnet Review Committee is committed to maintaining the existing quality of the original magnet schools. We will continue to work with the host district as we exercise stringent oversight of the magnet schools' budget in an effort to achieve and ensure efficient management and cost containment to the greatest extent possible. Sincerely, ~ Sadie Mitchell, Chairperson Magnet Review Committee SM/DGC:sl Attachments - Actual 1998-99 Original Magnet Schools Budget (Draft l) Proposed 1999-2000 Original Magnet Schools Budget (Draft l) cc: Ann Brown, Federal Monitor - Office of Desegregation Monitoring , Ann S. Brown Federal Monitor ACHIEVEMENT DISPARITY BETWEEN THE RACES IN THE LITTLE ROCK SCHOOL DISTRICT October 26, 1999 Office of Desegregation Monitoring United States District Court Little Rock, Arkansas Norman W. Marshall Associate Monitor EAST~~~lb~s~ ~SAS OCT 2 6 1999 JAMES W. McCORMACK, CLERK By: ______ _,,.D..,..E.,.,.P-,,,C-r-,Lt:_,.Rm,K . Polly Ramer Office Manager DESEGREGATiON iliO:JITOfiiNG ATTORNEY GENERAL OF ARKANSAS October 28, 1999 M. Samuel Jones, III Wright, Lindsey & Jennings 2000 NationsBank Building 200 W. Capitol Little Rock, AR 72201 John W. Walker John Walker, P .A 1723 Broadway Little Rock, AR 72201 Richard Roachell 401 W. Capitol, Suite 504 Little Rock, AR 72201 Mark Pryor Christopher Heller Friday, Eldredge & Clark 2000 Regions Center 400 W. Capitol Little Rock, AR 72201-3 493 Stephen W. Jones Jack, Lyons & Jones 3400 TCBY Towers 425 W. Capitol Little Rock, AR 72201 Ann Brown 201 E. Markham, Ste. 510 Little Rock, AR 72201 Re: Little Rock School District v. Pulaski County Special School District No. l , et al. USDC No. LR-C-82-866 Dear Counselor: Enclosed for your records is a copy of the Notice of Filing in the above styled matter that is being filed this date with the Clerk of the Court. TGG/nc encl. 1 Sincerely, ---/=:- -= Timo y Assistant Attorney General 323 Center Street Sui te 200 Little Rock, Arkansas 72201 (50 1) 682-2007 FAX (50 1) 682-8084 Internet Website http ://www.ag.state.ar.us/ IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION LITnE 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 October, 1999. oc, 2 g 1999 OrrlCt Or otStG~~i\Otl i,,om10Rma Respectfully Submitted, MARK PRYOR Attorney General T 95019 Assistant A. _____ , General 323 Center Street, Suite 200 Little Rock, Arkansas 72201 (501) 682-2007 Attorney for Arkansas Department of Education 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.