Schools in Dale County fight back

The recent directive from the State Department of Education to include Enterprise City and Dothan City Schools in the distribution of the Dale countywide taxes has been challenged.

Enterprise attorneys Dale Marsh and James Tarbox have filed a lawsuit on behalf of the Dale County Board of Education, Ozark City Board of Education and the Daleville City Board of Education against Dale County Revenue Commissioner Eleanor Outlaw, the Alabama State Department of Education, the Enterprise City Board of Education, the Dothan City Board of Education and their respective superintendents.

The lawsuit, filed Nov. 17 in Dale County Circuit Court, asks the court for an “emergency temporary restraining order,” to halt distribution of the sales tax to Enterprise City and Dothan City Schools.

At issue are approximately 600 students attending Enterprise City Schools who live in Dale County and approximately 30 students attending Dothan City Schools who live in Dale County.

Citing Alabama law, Interim State Superintendent of Education Ed Richardson directed Dale County Revenue Commissioner Eleanor Outlaw in a letter dated Oct. 20 to include Enterprise City Schools and Dothan City Schools in the 2017-2018 distribution of county schools taxes. “The Code of Alabama… provides that receipts from countywide taxes collected for the purpose of participating in the Foundation Program shall be distributed to local boards of education within the county based on their total Foundation Program calculated costs,” Richardson said in his letter.

Richardson’s directive was the result of litigation in North Alabama between Limestone County, Athens City and Madison City Schools.

Marsh and Tarbox asked the court to halt the Nov. 20 tax distribution payment to the school systems outside of Dale County.

“The plaintiffs have made Outlaw aware that they disagree with and object to the tax distribution percentages provided by (the State Department of Education),” the lawsuit says. “Outlaw has indicated that despite the disagreement and objection, she intends to continue to distribute tax revenues in the manner dictated (by the State Department of Education).”

Citing “irreparable harm” if the taxes are distributed to ECS and DCS, the attorneys contend that the Dale County Board of Education would receive approximately $270,000 less in budgeted revenues, the Ozark City School Board would receive approximately $170,000 less in budgeted revenues and the Daleville City School Board would receive $88,000 less in budgeted revenues in Fiscal Year 2018.

The lawsuit also contends that the “Enterprise City Board voluntarily accepts certain non-resident, out-of-district students into the school system pursuant to an internal operating policy adopted by the board.

“If the Enterprise City Board and the Dothan City Board receive these tax revenue distributions, the money may be spent and ultimately lost to the plaintiffs,” the lawsuit says.

In their legal action, the attorneys ask the court to require Outlaw “to place the subject tax revenue distributions meant for the Enterprise City Board and the Dothan City Board in an escrow account until such time as there is an agreement between the parties as to the distribution of those funds or until there are further orders of this court.”

Thirty third Judicial Circuit Judge Kimberly Clark signed the restraining order Nov. 17.