Posted: Jan 2, 2013 5:08 PM by Katy Harris KXLF News
The Anaconda School District Superintendent says they face a lawsuit that several other school districts could also face.
Since 2009, the school district has placed Tax Increment Financing Industrial District monies into flexibility funds.
The Department of Revenue now thinks the district should deposit this source of money into the general fund.
Anaconda School District Superintendent Tom Darnell says several districts throughout the state use flexibility funds.
This could be an issue for the districts but they may no be aware.
If the Department of Revenue wins the lawsuit the school district could lose over a million dollars to support infrastructure.
"That will have a devastating effect on our district in use of this money and possibly other districts in the state that have similar types of arrangements," says Anaconda School District Superintendent Tom Darnell.
The school board of trustees passed a resolution to hold TIFID money until negotiations with DOR continue.
They hope to reach a settlement by March 1st.