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Crawford County poised to pass new budget after major financial blows | Northwest Arkansas Democrat-Gazette

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Crawford County poised to pass new budget after major financial blows | Northwest Arkansas Democrat-Gazette

VAN BUREN — The Crawford County 2025 operating budget is up for a vote Monday by the Quorum Court, and it comes in the wake of a couple of financially tumultuous years.

Justices of the Peace are set to vote on the annual operating budget in a meeting that starts at 7 p.m. Monday in the upstairs courtroom at the Crawford County Courthouse, 300 Main St., Van Buren.

Prior to that session, the Quorum Court’s personnel committee meets at 6:30 p.m. and the budget committee meets at 6:45 p.m.

The budget panel agenda includes a request from county Judge Chris Keith to add $6,000 to the county general fund “for retaining legal fees on 1st Amendment lawsuit.”

Multiple issues have had big impacts on the county’s financial situation in the last couple of years. They include:

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A financial payout to the District 6 Rural Fire Department due to a 2019 lawsuit decided in 2023.

Two lawsuits sparked by the county’s change (now reversed) in how its library system handles LGBTQ-related books.

A paperwork fumble that meant the county lost out on about $3 million in sales tax revenue last year.

Going into 2025, costs from the pair of library-related lawsuits are ongoing and likely will require more taxpayer dollars.

FIRE DISTRICT SUIT

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The county’s District 6 Rural Fire Department board voted in April 2019 for the squad to become a fire protection district.

According to changes in Arkansas law that year, after the board submitted the notice to the Quorum Court, the county then had 60 days to approve it.

That never happened.

In November 2019, District 6 filed a lawsuit in Crawford County Circuit Court alleging that Crawford County, its Quorum Court and then-county Judge Dennis Gilstrap failed to approve the request.

District No. 6, located at 1022 Pleasant Valley Road in Van Buren, initially asked for $160,000, according to court filings.

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Court documents in the case indicate that the fire squad was “entitled as a matter of law to conversion into a statutory fire protection district effective no later than June 23, 2019.”

The lawsuit alleged that the county “must grant the petition.”

Becoming a fire protection district allowed the rural squad to collect property taxes to support its operations.

In a summary judgment decision in September 2023, Judge Marc McCune ruled in favor of the fire district and ordered the county to pay $221,273 plus interest as provided for by law, according to court records.

Crawford County appealed the case but did not prevail. Court documents show the county paid the damages by June 25 this year.

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LIBRARY LAWSUITS

Before the end of 2024, Crawford County will have spent at least $400,000 fighting a pair of lawsuits over its late 2022 and early 2023 change in how the Crawford County Library System catalogues LGBTQ-related library books.

Litigation already has resulted in the county rescinding the new policies but its sparring in federal court is not over.

Pressure on the Quorum Court at the end of 2022 from residents who spoke out about displays of LGBTQ-themed books in the system libraries led to the creation of a “social section” of books in early 2023.

Those volumes that were related to gay issues were marked with green stickers and collected into a certain portion of shelves.

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As a result, two lawsuits related to the issue were filed in 2023 in U.S. District Court in the Western District of Arkansas.

The first is Virden v. Crawford County, with three local mothers as plaintiffs who alleged the county’s treatment of LGBTQ-related books violated their First Amendment rights.

After a summary judgment in their favor Sept. 30 this year by Judge P.K. Holmes III, the Virden plaintiffs filed in court to have Crawford County, as defendants, pay their legal costs.

In civil rights cases such as this one, plaintiffs who prevail can seek “a reasonable attorney’s fee as part of the costs,” according to 42 U.S. Code 1988.

Federal Judge Timothy L. Brooks must decide whether the county will pay the plaintiffs’ more than $121,500 legal bill.

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The county is fighting the amount of the plaintiffs’ legal fees and costs.

The second lawsuit regarding the library books involves the Fayetteville library, other libraries and book sellers in Arkansas. Defendants are Crawford County and county Judge Chris Keith and the prosecuting attorneys in Arkansas’ 28 judicial districts.

It centers on two sections of Act 372, the new Arkansas law on school and library materials.

The last action on that case was Brooks’s cancellation Oct. 29 of all future hearings on the matter. What action is next — and the kind of wild card that will mean for Crawford County’s budget — remains to be seen.

The county’s cost figures thus far between the two library-related cases include:

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$40,678.50: Severance for ousted library director.

$240,735.05: Legal defense fees, so far, in the Virden v. Crawford County case lost by the county.

$121,558.31: Plaintiffs’ fees so far in the Virden case (if Brooks orders the county to pay the costs).

$118,300: Legal defense fees, as of Nov. 15, in the Fayetteville Public Library et al v. Crawford County, Arkansas et al, Act 372 case.

That adds up to a potential of more than $525,000 that the library book controversy may cost county taxpayers.

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SALES TAX REVENUE

The upcoming new chapter on Crawford County’s financial health comes on the heels of the county’s loss of about $3 million after it was unable to collect sales tax for three months last year.

Local officials failed to file the necessary paperwork with the state, said Scott Hardin, spokesman for the Arkansas Department of Finance and Administration.

In May 2022, Crawford County residents voted to continue a 1% county sales tax from Sept. 30, 2023, through Sept. 30, 2031.

Last year, according to Hardin, officials in Crawford County needed to file paperwork notifying his department of a change in its sales tax rate by July 3, 90 days before it was to take effect.

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Because that was not done, Hardin said, the county could not collect any revenue from the sales tax from Oct. 1 through Dec. 31, 2023.

Keith said revenue from the tax is divided between the county and the nine municipalities in the county based on population.

The county received more than $4.3 million from its side of the tax in 2022, according to Keith.

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Finance

Paramount ally RedBird says using Middle East money to help buy Warner Bros. could be a good idea

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Paramount ally RedBird says using Middle East money to help buy Warner Bros. could be a good idea

  • Last year, Paramount said it would use $24 billion in funding from Saudi Arabia, Abu Dhabi, and Qatar to help buy WBD.
  • Now that Paramount has won that deal, it won’t say whether that’s still the plan.
  • A key Paramount backer suggests that Gulf money would be a good thing for this deal.

We still don’t know if Paramount intends to use billions of dollars from Gulf states like Saudi Arabia to help it buy Warner Bros. Discovery.

But if Paramount does end up doing that, it wouldn’t be a bad thing, says a key Paramount backer.

That update comes via Gerry Cardinale, who heads up RedBird Capital Partners, the private equity company that helped finance Larry and David Ellison’s acquisition of Paramount last year and is doing the same with their WBD deal now.

In a podcast with Puck’s Matt Belloni published Wednesday night, Cardinale wouldn’t comment directly on Paramount’s previously disclosed plans to use $24 billion from sovereign wealth funds controlled by Saudi Arabia, Abu Dhabi, and Qatar to help buy WBD.

Instead, he reiterated Paramount’s current messaging on the deal’s financing: The $47 billion in equity Paramount will use to buy WBD will be “backstopped” by the Ellison family and RedBird — meaning they are ultimately on the hook to pay up. The rest of the $81 billion deal will be financed with debt.

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Cardinale also acknowledged what Paramount has disclosed in its current disclosure documents: It intends to sell portions of that $47 billion commitment to other investors: “We haven’t syndicated anything at this time,” he said. “We do expect to syndicate with strategic, domestic, and foreign investors. But at the end of the day, that alchemy shouldn’t matter because it’ll be done in the right way.”

And when asked about concerns about Middle Eastern countries owning part of a media conglomerate that includes assets like CNN, Cardinale suggested that could be a plus.

“I think we want to be a global company,” he said. “You look at what’s going on right now geopolitically. What’s going on right now geopolitically out of the Middle East wouldn’t be, the positives of that would not be happening without some of those sovereigns that you’re referring to.”

He continued:

“The world is changing. We can stick our head in the sand and pretend it’s not, or we can embrace globalization and the derivative benefits both geopolitically and otherwise that come from that. Content generation coming out of Hollywood is one of America’s greatest exports.
I firmly embrace the global nature and orientation that we bring to this from a capital standpoint, from a footprint standpoint, etc. At the end of the day, I do understand some of the concerns that you’ve raised, but that will work itself out between signing and closing because at the end of the day, worst-case scenario, Ellison and RedBird are 100% of this thing.”

All of which suggests to me that Paramount still intends to use money from Gulf-based sovereign wealth funds to buy WBD.

What I don’t understand is why the company won’t say that out loud. Does that mean it’s still negotiating with potential investors? Or that it’s reticent to disclose outside investors, for whatever reason, until it has to? A Paramount rep declined to comment.

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Crypto bill hits new impasse, raising doubts over its future

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Crypto bill hits new impasse, raising doubts over its future
Talks on landmark crypto legislation have hit a new impasse after banks said they could not back a compromise pushed by the White House, a development that cast doubt on whether the bill will pass this year and sparked criticism from President Donald Trump ​who accused lenders of trying to undermine it.
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Finance

Stamford Finance Students Wow Judges, Take Home Trophy in Regional CFA Competition – UConn Today

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Stamford Finance Students Wow Judges, Take Home Trophy in Regional CFA Competition – UConn Today

A tenacious team of finance majors, who sacrificed most of their winter break to prepare for the CFA Institute Research Challenge, took first place in that regional competition last week.

Students Hunter Baillargeon, Dylan Fischetto, Richard Opper, Philip Ochocinski and Rushit Chauhan were tasked with researching and analyzing a major utility company, and then producing a 10-page report about whether to buy, hold, or sell its stock. They chose to sell.

One of the CFA judges said both the team’s report and presentation were among the best he had seen in many years.

“As a team, we were thrilled our hard work paid off and our many hours of work allowed us to achieve what we did,’’ Baillargeon said. “What we accomplished couldn’t have been done without working with such a cohesive and collective unit.’’

“From a technical perspective, I realize how valuable true analysis is and the importance of looking where others don’t for a differentiated approach,’’ Baillargeon said.

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The first round of competition featured 24 college teams from the Stamford-Hartford-Providence region. The Stamford team, composed of seniors all of whom all participate in UConn’s Student Managed Fund program, received its first-place award Feb. 26 in a ceremony in Hartford. The team will advance to the East Coast competition later this month.

Stamford Finance Program is Robust

“The Stamford team’s advancement in this competition reflects not only the students’ exceptional talent and work ethic, but also the rigor and applied focus of the UConn finance curriculum,’’ said professor Yiming Qian, head of the Finance Department.

“Our Stamford campus hosts approximately 200 financial management majors. The Stamford program is a vital part of the School and continues to demonstrate outstanding strength,” she said.

Professors Steve Wilson and Jeff Bianchi, who combined have 75 years of experience in the investment industry, were the team’s advisers and were supported by academic director Katherine Pancak.

Wilson said the task of analyzing a utility is particularly complex because of the company’s structure and the regulatory environment in which it operates.

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“I believe the Stamford team stood out because of the depth of their research, and willingness to take a bold stand, including the decision to ‘go out on a limb’ and recommend selling the stock,’’ he said. “They didn’t ‘play it safe.’’’

“This clean-sweep was a true team effort. They were tireless throughout, and sleepless too often, but they never wavered from their desire to always dig deeper and uncover any information that would strengthen our investment case,’’ he said. “What a phenomenal job they did!’’

Competition in Hong Kong Is Ultimate Goal

The Stamford team will compete against Loyola, Canisius, Sacred Heart; Seton Hall, Villanova, St. Michaels, Western New England, University of Maine, Fordham and Penn State next. In total, some 8,000 students are expected to participate in various competitions worldwide, culminating in a championship round in Hong Kong in May.

Wilson said the financial industry is always welcoming of new talent. And when one of the judges told him that the Stamford team produced some of the best work that he’d seen in years, Wilson felt tremendous pride for the students.

“Finance is an open playing field. In investments, the best idea wins,’’ he said.

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Baillargeon said he will always appreciate the whole team’s dedication.

“What I’ll remember most is the help of our advisers and our cohesive, close-knit team where everyone pulled their weight,’’ Baillargeon said. “We put in long hours, did a tremendous amount of research, and collaborated well together. I hope when I enter the workforce I get to work with a team as committed as this one is.’’

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