BILL WOULD LET SCHOOLS KEEP UTILITY TAX MONEY

A bill proposed in the Missouri Senate could preserve a source of substantial income currently threatned for about 80 school districts in the state, including Cape Girardeau Public Schools.

The measure, filed Dec. 1, would keep revenues from a state tax on railroads and utilities going directly to local school districts. A provision of a Senate Bill 380, a sweeping overhaul of Missouri schools passed in 1993, will funnel those revenues into the state's foundation formula for education beginning next school year.

But the Cape Girardeau district is amont those that will receive no new state money under the formula. If railroad and utility tax funds are distributed through the formula, those districts will no longer see any of that money.

The Cape Girardeau district stands to lose about $700,000 annually if the change goes through.

"I think this has strong support in the Senate," said Sen. Peter Kinder, R-Cape Girardeau. Kinder is one of several lawmakers co-sponsoring the bill. "I think about every senator has at least one district that is situated as a loser" under the change.

Under SB 380, districts who stand to lose under the foundation formula are known as held harmless. They won't lose current per-student state funding, but they also won't get any new state funding.

"This bill is extremely improtant for the Cape Girardeau Public Schools," Kinder said. "Senate Bill 380 hurt Cape schools, first by reducing the amount spent per pupil, and again by the loss of the revenues generated by this tax."

Steve DelVecchio, business manager for the Cape Girardeau school district, is delighted the legislature is picking up this issue.

"It is a good piece of legislation for hold harmless districts," he said. "This is a very serious matter for us."

In early October, Cape Girardeau joined dozens of other districts throughout the state as plaintiffs in a lawsuit challenging the change in the tax's distribution. The Kirkwood School District in St. Louis County initiated the case.

The case is proceeding, but DelVecchio said favorable legislation would make litigation unnecessary.