A proposed financial settlement involving the separation of Timbo and Rural Special schools from the Mountain View School District is now headed to the Arkansas legislature for consideration.
The situation, described by local leaders as similar to a divorce, follows weeks of negotiations that stalled due to major differences in funding proposals. Timbo and Rural Special representatives initially proposed about $4,700 per student, while Mountain View offered significantly lower amounts of $662 per Rural Special student and $575 per Timbo student.
The Arkansas Department of Education stepped in to develop a compromise after the impasse, with assistance requested by Senator Missy Irvin. The department drafted language tied to an amendment to House Bill 1007 aimed at creating a more balanced financial outcome.
Under the proposal, funding would be based on 90 percent of the state’s foundation funding rate of $8,162 per student. Using March enrollment numbers, that would provide approximately $1,263,478 for Timbo and $1,498,543 for Rural Special, totaling about $2,762,021.
Mountain View School District would offset much of that cost through approximately $1,534,000 in declining enrollment funding due to the loss of 376 students. An additional estimated $300,000 in local tax revenue from Timbo and Rural Special residents in 2026 and 2027 would also contribute.
That would leave a net payout of roughly $928,000 from Mountain View School District—far less than what Timbo and Rural Special initially sought.
State education officials also noted the availability of a $5.9 million consolidation incentive fund, which could be used if any district faces financial hardship.
The proposal is expected to be voted on next week by Arkansas lawmakers.

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