CAPE DISTRICT JOINS LAWSUIT TO CONTEST SCHOOL FUNDING LAW

The Cape Girardeau public schools have joined about 30 Missouri school districts in a lawsuit fighting the state's school funding law.

A suit filed July 28 in Cole County challenges an Outstanding Schools Act (SB 380) provision that changes the way railroad and utility tax money is collected.

This year, the money goes directly to the local school districts, but starting next school year the tax money will go to the state education department to be doled out to schools using a formula devised in SB 380.

Because of the change, the Cape Girardeau district stands to lose about $700,000 a year.

The Kirkwood School District in St. Louis started the litigation. Since its filing, about 30 other districts have joined. Most are districts classified as "hold harmless."

"Hold harmless" is a term for districts that would lose money under the new state funding formula. Built into the law is a guaranteed minimum level of money for these districts so they won't be "harmed" by the change in the law. However, these schools don't benefit from new money added to the state education coffers.

Essentially, railroad and utility taxes that previously went directly into the Cape Girardeau budget will be funneled through the state funding formula and won't return to Cape Girardeau.

"Once that goes into the formula, we don't get any benefit," said Steve DelVecchio, the district's business manager.

The lawsuit maintains that the procedure is unfair to certain districts, primarily those which are not gaining enrollment, and seeks to undo the provision.

So far, the district hasn't committed any money to the legal action.

"There is probably going to be some cost to the district," DelVecchio said. "When we find out what that cost is, we will talk with the school board."

He said legislators have been reluctant to change SB 380, and the lawsuit is a way to pressure the legislature for changes.

Passed by the legislature in 1993, SB 380 included a wholesale re-writing of Missouri's method of distributing money to public schools and an assortment of educational reforms for schools. The law was prompted by a 1993 ruling by a Cole County judge that the previous formula for distributing state money to schools was unconstitutional and inequitable.

No court date has been scheduled in the lawsuit.