Blunt signs education budget bill

ST. LOUIS (AP) -- Saying that education funding will continue to be Missouri's highest priority, Gov. Matt Blunt signed an education budget Thursday that includes a $173 million increase in education spending.

Blunt started a four-city tour at the St. Louis-based National Parents as Teachers Center with a ceremonial signing of a $5 billion budget for elementary and secondary education for the fiscal year that begins July 1.

"We're keeping (our) pledge of ensuring that our highest budget priority remains providing resources to classrooms all across the state," Blunt said. The Republican was to make later stops in Wardsville, Springfield and Lee's Summit to highlight the budget that represents a 3.6 percent increase from overall fiscal 2006 state education funding of $4.84 billion.

However, about 250 districts are suing the state and remain unhappy with the previous education budgets and the new school funding formula. The districts say the state is providing too little for education and not distributing the money fairly.

The new "foundation formula" was developed to address those concerns and is aimed at students' needs more than a district's property tax base. The coming school year will be the first of a seven-year phase-in of the new formula, which is eventually expected to add about $800 million annually to the nearly $2.5 billion the state already was spending on basic aid for schools. This year's formula increase is about $128 million.

"If you are a district suing the state, all you want is a massive tax increase," Blunt said. "We now realize that it costs more to educate students in some places than others."

The budget includes $1 million to support Missouri's Parents as Teachers programs and $15 for small schools.

The new budget also gives increased funding for so-called "hold harmless" districts for the first time in 12 years, Blunt said.

Those districts were funded under a formula that was in place before the state last rewrote the funding formula in 1993. Lawmakers agreed to let those districts be "held harmless" from cuts they would otherwise face under the revised formula.

"It's not just a decision by politicians, in fact it's a constitutional obligation," said Sen. Gary Nodler, R-Joplin. "Long ago the people of Missouri made education the first priority of the state constitution."

Nodler sponsored legislation that passed this year in hopes of fending off some of the districts involved in the lawsuit.

The legislation requires districts charging less than a $3.43 property tax levy to certify to the state whether they are providing an adequate education to students. If not, the legislation presumes that the district is failing because it doesn't charge enough local taxes.

Some school administrators have called the provision a Catch-22, and lawyers say it could force districts to raise local taxes, a constitutional violation.

Blunt reasserted his stance Thursday that districts that are coming up short should consider if their local taxes are significant enough.

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Associated Press Writer Kelly Wiese contributed to this story.