Rankin County School District is renegotiating its sixteenth section leases in accordance with directives by the Secretary of State and as guided by the MISSISSIPPI CONSTITUTION and state statutes.
As a result of these renegotiations, the district has increased annual rental least amounts by 1000%, from $22,449 (before renegotiations) to $246,990 (at March 30, 1992). Total rental values for these leases is now $7,975,141, in comparison with $601,834 before renegotiations. The accumulated costs (July 1, 1985, through March 30, 1992) associated with the renegotiations totals $595,222, equivalent to approximately two and three-quarters years of additional revenues collectible under the leases.
No provisions in the law allow school districts to recover related costs from lessees. The school districts must absorb the related costs and, if litigated, rely on the court system to award these costs back to them, which cannot be guaranteed.
The Rankin County School District has forty-six active lawsuits related to these mandated renegotiations. The first suit has recently been heard; outcome of this litigation could affect future cases and related costs.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.