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Schools Shorted Tax Funds

Madison, AL: (Apr-09-08)The Madison Board of Education brought a lawsuit against Madison County, alleging that between 1989 and 2004 the county collected taxes that should have been distributed to Madison, Huntsville city and Madison County schools but were put into the county's general fund instead. The 15-year tax mistake cased the lawsuit which originally sought $5.4 million, plus interest.

Following court-ordered mediation, sources stated that the school and county officials reached an agreement, in which the county will pay a $3 million settlement, resolving the dispute. Under the terms of the deal, the county will distribute funds to the three systems over the next two years. Madison Superintendent Dr. Dee Fowler stated that as part of the agreement, Madison County Schools would get $600,000 in September and again in January 2009 and 2010, or a total of $1.8 million. The Madison and Huntsville systems will each get about $200,000 on the same schedule, he said, or $600,000 for each. [EVERYTHING ALABAMA: $3M DEAL AMICABLE, SAYS FOWLER]

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Published on Apr-11-08


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