Millage vote a blow to district's plans

HOT SPRINGS -- Hot Springs Superintendent Joyce Craft said the district must be "creative" with funding after a proposed 2-mill increase was voted down.

The district held its first special millage election in 15 years this month to ask voters to increase its millage from 37.7 to 39.7. The measure would have extended the life of 10.8 debt service mills through the 30 years of the two new mills.

Craft said school officials saw no reason that the measure would not pass.

"We didn't think we were asking for anything unreasonable and thought we had done well as far as keeping the district fiscally sound, being creative with what we have and improvements we have made," Craft said. "You can see visible differences in our district."

The increase was voted down by a slim margin. A total of 627 votes were cast against the increase, and 563 votes were cast in favor, according to unofficial results.

The district's School Board has explored a millage increase for the past several years, but the district had been hesitant in the current political climate.

"But when it comes to investing in your students, we felt that any community -- a thriving, promising, progressive community -- would want to have a thriving, progressive, innovative school district," Craft said. "We hear communities always talk about drawing businesses into the community, and the first thing businesses look at is the education of your community."

Craft said the district consulted with Ray Beardsley of First Security Beardsley Public Finance to determine whether Hot Springs could fund the construction of a new multipurpose building without an increase. They determined the district could not generate the necessary $8 million to $10 million needed for the project on its own.

She said she was disappointed because school officials, volunteers and supporters had dedicated significant effort to the campaign.

"It wasn't that we wanted a new multipurpose building, but there was a need for it," Craft said. "We just felt the community would support a multipurpose building and new technology.

"In addition, we hadn't asked for anything in 15 years. We are well aware and cognizant of taxes and the taxes that have been asked for."

Revenue from the millage would have funded the construction of the new building and upgrades in technology. The project would have included a new gymnasium and a set of classrooms to feature modern educational equipment.

Craft said Hot Springs must now analyze its budget and be creative in determining if and how to obtain new technology.

"We don't want to restrict or deny students of any technology," Craft said.

"We had a technology committee from each one of the schools. We charged them to think outside of the box. It's not just equipment. It's not about the technology. It's about what you are going to do with the technology."

Hot Springs Intermediate School was among 14 schools announced earlier this month as recipients of grant funding for Environmental and Spatial Technologies programs in the 2015-16 school year. Funding, primarily by grants through the Arkansas Department of Education, saves schools more than $100,000 in equipment, support and training costs, but districts must match some of the funding to begin the programs.

The district had planned for model technology classrooms at other schools, following the success of the example at the middle school. No plans are in place for another model tech room. However, the intermediate school received a $20,000 grant to use toward equipment for a potential classroom.

The district's existing 10.8 debt service mills are scheduled to be collected through the 2030-31 school year after a small increase was approved by voters 15 years ago.

Craft said Hot Springs will seek to extend the mills before they expire because the funds are needed to operate the district.

Hot Springs was one of at least four districts in the state to vote against proposed millage increases on May 13.

Voters in the Pulaski County Special School District rejected a 5.6-mill increase. A proposed 3.8-mill increase for the Sheridan School District was rejected, and a Buffalo Island School District request for 9 new mills failed.

State Desk on 05/24/2015

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