MuskogeePhoenix.com, Muskogee, OK

Local News

September 1, 2010

Uncertainty over Creek proposal crimps school budgets

— School districts that rely on federal impact aid to make up for properties removed from tax rolls have been held up.

At least three area school districts are waiting for their counties to ensure that Creek Nation properties are off their tax rolls before they seek federal impact aid for 2011.

Earlier this week, McIntosh County Commissioners tabled action on an agreement with the Muscogee Creek Nation for cooperation and payment in lieu of taxes on Creek housing. Muskogee County Commissioners struck a similar item from their agenda earlier this week because they had questions.

“I think the concern is that all the documents haven’t been filed that need to be filed,” said McIntosh County Commission Chairman Tim Pendley. “The only thing I want to do is have the district attorney say this is legal, then I can sign the agreement.”

School districts including Checotah, Oktaha and Eufaula rely on federal impact aid to make up for the properties removed from the tax rolls, area school superintendents said.

“The counties need to approve the proposal by the Creek Nation or we lose our impact aid,” said Oktaha School Superintendent Jerry Needham. He said the request could affect $80,000 in impact aid for Oktaha.

Officials with the Creek Nation could comment on Wednesday.

Checotah School Superintendent Mark Calavan said school districts apply for federal impact aid for any property, such as tribal or military housing, that is taken off county tax rolls. School districts base much of their budgets on the property taxes.

Calavan said the Creek Nation dissolved its housing authority through the state of Oklahoma several years ago.

“When that happened, the housing went back on the tax rolls,” he said.

The Creek Nation’s efforts to re-establish a housing authority met a state constitutional challenge, State Rep. Jerry McPeak said. Earlier this year, the Oklahoma Legislature passed a law, which McPeak helped draft, allowing any Indian tribe to assume management of their properties and providing for continuation of tax exemption upon payment in lieu of the taxes.

“It really doesn’t change anything from what it was earlier,” McPeak said.

He said schools would get considerably more aid than what the counties might lose in property taxes.

“The problem apparently is that the county commissioners are awaiting proclamation from the Creek Nation,” Calavan said.

He said Checotah would get about $54,000 in federal impact aid and would not be affected as much as Oktaha or Eufaula.

Eufaula School Superintendent Dan Edwards said the district gets about $400,000 in federal impact aid, partly because “half of our district is under the lake, and that’s federal property.”

Muskogee County Commission Chairman Dexter Payne said the Creek Nation is asking to make set payments to the county in lieu of the taxes.

“We want the district attorney to look at it to make sure everything’s legal,” he said.

Calavan said he expects the McIntosh County commissioners to make a decision at their meeting on Monday.

Reach Cathy Spaulding at 684-2928 or cspaulding@muskogeephoenix.com.

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