Accepting the excise board’s amendment to the budget could affect a large amount of state aid received by Kingfisher Public Schools.

That potential scenario led to the board of education voting Monday night to direct its legal counsel to pursue “legal options to address the Kingfisher County Excise Board’s amendment” to the budget the district proposed.

Carly Franks made the motion after board members met for more than 90 minutes in executive session with Eric Janzen of Rosenstein, Fist & Ringold, the Tulsa law firm that represents the school district.

The motion passed 4-1 with Dana Golbek, Charles Walker and Terry Payne joining Franks in voting for it.

Brad Wittrock voted against it. The school board last month approved a $16.2 million estimate of needs, which was then sent to the excise board for approval.

After initially tabling action on the estimate of needs, the excise board voted at a special meeting on Sept. 25 to amend the budget to $14.2 million.

The general fund millage of 20.59 approved was the minimum allowed by state law.

The move, according to John Storm of Storm & Hauser, the CPA firm that advises the excise board, would make way for the school district to cover the cost of this year’s portion of a $5 million civil lawsuit settlement the district made with Mason Mecklenburg last year.

According to the terms of the settlement, the district paid $1.25 million within 90 days of the agreement and then would pay $1.25 million per year, plus interest, for three years from the sinking fund.

That would raise ad valorem taxes for landowners and property owners in the district. Estimates provided to the KT&FP at the time were at about 12 percent.

Several citizens and local leaders attended Monday’s meeting. Four people spoke against the potential of the board not following the excise board’s amendment. ( Note: See related story on the comments of those citizens on Page 1.)

Andy Evans, the interim superintendent hired by the board just last week, said the district wants to work with the excise board.

“We understand where the excise board is coming from and we’re trying every way in the world to correct the lack of information they feel like they’re having… like they’ve had,” Evans told the KT&FP Monday night. “We’re working overtime on that. And we will continue to work overtime. This isn’t just a panic at the last second. We know by law we’ve got to put those things out there and they will be out there.”

However, stated Evans, being approved for 20.59 mills may not keep the district in line with state regulations.

“Where we’re at is we’ve got to make sure that the district upholds the votes that made those millages permanent in 2002,” Evans said, referencing a vote by many school districts, including Kingfisher, to make millages permanent as opposed to voting on them each year.

According to a “technical assistance document” on the Oklahoma State Department of Education’s website regarding school finance, there are four sources of ad valorem tax levies for school general fund purposes that total 35 mills.

“These four levies add up to a total of 35 mills (plus increased millage because of personal property tax adjustment) for the General Fund,” the document states. “The system has evolved to the point that these millage levies are not really optional. They are also interrelated with state aid to the point that no district, even one with considerable property wealth, can afford not to levy the maximum.”

Which is why, Evans said, the board met with its attorney Monday.

“Our attorney’s going to have to try to negotiate somewhat to see where we’re at and keep looking at this,” Evans said.

He added Janzen has “somewhat of a plan of action, but I can’t really comment on that.”

Evans said the district has been approved for $1.738 million in state aid and has received $600,000 of that.

The unease, he said, is the district being penalized for not meeting the minimum ad valorem tax.

“Now we’re on regular state aid payments and flexible benefits (for teachers),” Evans said. “The concern is if we’re under the ad valorem minimum that we lose the flex benefit for the teachers. Are we penalized on the flex benefit? Are we penalized for state aid?”

Evans said the board in asking its attorney to negotiate on its behalf wants to ensure it falls within all regulations.

“We’ve got to make sure we’re meeting the requirements of the state of Oklahoma for state aid or else we are outside the duties of the board, just like the excise board feels like they’re inside the duties they’re supposed to fulfill,” Evans said.

“So we’ve got two different groups that are trying to fulfill the obligations they feel that they have and that’s causing a difficult situation around here.”