Hot Springs school delays election on tax increase

8:35 AM, Jan 26, 2012   |    comments
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HOT SPRINGS, Ark. (AP) - The National Park Community College Board of Trustees is postponing a special election set for April after attorneys questioned whether the Hot Springs school could legally use a property-tax increase to fund construction projects on campus.

The board had scheduled an April 10 election to ask voters for a 2.2 mill increase that would generate up to $13 million to pay for capital projects. But the board voted Wednesday to postpone the election until legal issues are clarified.

School president Sally Carder tells the Hot Springs Sentinel-Record (http://is.gd/6Zf3NZ) that a 1973 law permits millage increases to pay for construction projects. But a 1977 statute says millage increases can be used for operating expenses - and it doesn't mention capital projects.

The school says it's seeking clarification from the Legislature.

(Copyright 2012 The Associated Press. All rights reserved.)