FAYETTEVILLE -- A former Ecclesia board member has amended for the third time a Freedom of Information Act request seeking documents related to money the embattled private college received from state General Improvement Funds.
The lawsuit, filed by Jim Parsons, notes only documents related to how public money was used at the Christian college are being sought. Parsons is chairman of the Benton County chapter of Transparency in Government Group. He's also a former Ecclesia board and faculty member.
General Improvement Fund
A fund consisting of state tax money left unallocated at the end of each fiscal year and interest earned on state deposits. Each legislator was, in the past, given a share of the fund to be directed to a nonprofit group or government entity. The governor’s budget this year didn’t include surplus money for legislators to spend. The fund was found to be unconstitutional by the Arkansas Supreme Court in October.
Source: Staff report
Parsons is represented by attorneys Chip Sexton and Joey McCutchen.
Arkansas legislators gave more than $700,000 of taxpayers' money from the Improvement Fund to the Springdale school.
Originally filed Feb. 9, 2017, the lawsuit contends private organizations receiving public money, engaging in activities of public interest, carrying on work intertwined with a government body or receiving grants to promote economic development are subject to the requirements of the state Freedom of Information Act.
Ecclesia has contended the mere receipt of state money doesn't make the private school subject to provisions of the Freedom of Information Act. Ecclesia also argued it's a church and nonprofit corporation and, therefore, entitled to constitutional protection.
The amended complaint drops a claim the grant money given to Ecclesia constituted the giving of state money to a religious institution in violation of the state Constitution.
An attorney for Ecclesia College in June turned over some records related to how state money the college received from the General Improvement Fund was used. But, Sexton said Tuesday, those documents weren't what they asked for.
The amended complaint filed Monday says Ecclesia hasn't released the documents requested by Parsons in early 2017 although the time allowed by law to respond has long since expired.
"As of the present date, Ecclesia has failed and refused and continues to fail and refuse to produce such documents and has made clear in pleadings filed in this that it is not going to produce such documents without an order from this court," according to the amended complaint.
The complaint asks a hearing be set within seven days and the court order Ecclesia to release the requested documents.
Parsons and his lawyers are asking Ecclesia be ordered to pay back all the grant money it received, arguing the money wasn't used for the stated purpose.
"The funds were not used for the acquisition of land for student housing, nor were they used to build student housing," according to the complaint. "Instead, the funds were used to pay kickbacks to legislators, to purchase tracts of land which defendant promptly encumbered to acquire additional funds for the personal benefit of its officers, agents and employees."
The state Department of Finance and Administration also has asked state Attorney General Leslie Rutledge's office to sue Ecclesia College to reclaim at least $600,000 of kickback-tainted grants the college received from the General Improvement Fund.
Ecclesia's receipt of the money entered the spotlight after former state Rep. Micah Neal of Springdale pleaded guilty in federal court Jan. 4, 2017, to a single fraud charge related to taking kickbacks in return for steering grant money to Ecclesia and another nonprofit.
Former state Sen. Jon Woods of Springdale; Oren Paris III, then-president of Ecclesia College in Springdale; and consultant Randell G. Shelton Jr., formerly of Alma, were accused in a federal indictment in 2017 of participating in a kickback scheme.
Woods and Shelton were convicted May 3. Paris pleaded guilty April 4 and resigned as college president.
All four were sentenced earlier this month.
NW News on 09/19/2018