Challenge to school tax levies heard in high court

JEFFERSON CITY, Mo. -- As various school systems prepare lawsuits over cuts in state education funding, the Missouri Supreme Court on Thursday heard a case that could invalidate tax levy increases imposed by more than 100 school districts.

The case claims that a constitutional change Missouri voters approved five years ago conflicts with the state constitution's revenue-limiting Hancock Amendment.

The 1998 change, known as Amendment 2, gave local school boards the authority to set property taxes as high as $2.75 per $100 assessed valuation without voter approval. The provision was ratified with 58.8 percent support.

However, a group of Morgan County taxpayers says Amendment 2 didn't repeal the Hancock Amendment's cap on how much additional revenue taxing entities, including school districts, can raise without voters' permission.

The Supreme Court, which will issue an opinion at a later date, is being asked to reconcile the alleged conflicts between the sections. A lower court had dismissed the case, ruling the Morgan County Board of Education had acted within its power by unilaterally setting a $2.75 levy. A similar case is pending in Newton County.

At least 111 school districts, including 22 in Southeast Missouri, have taken advantage of Amendment 2 to raise a combined $27.7 million in taxes. Area districts to do so include Meadow Heights, Zalma, Woodland and Kelly.

Craig Johnson, the Jefferson City attorney representing the taxpayers, said the paramount issue is whether Amendment 2 supersedes the Hancock Amendment, which was ratified 18 years earlier.

"We are saying it doesn't trump it," Johnson said. "They are separate limitations."

Judge Michael A. Wolff questioned whether voter ratification of Amendment 2 itself satisfied the Hancock requirement.

"Isn't that a way to make it fit with Hancock?" Wolf asked.

Johnson said Hancock envisioned approval of specific tax matters by voters of the affected political subdivision, not a blanket statewide approach.

Alex Bartlett, the Jefferson City attorney representing the school district, said Amendment 2 must override Hancock's revenue cap for it to have any meaning.

"Because there was statewide voter approval, that trumps Hancock," Bartlett said.

Two major business groups, the Missouri Chamber of Commerce and Associated Industries of Missouri, filed a written argument with the high court backing the taxpayers. The Missouri Council of School Administrators and the Missouri School Boards Association weighed in on behalf of the school district.

The state's budget problems have prompted two other cases related to education funding. Some suburban Kansas City school districts last month filed a suit challenging the governor's authority to withhold funds approved by the legislature for education. Another case brought by 147 mostly rural districts claims state funding for education is inadequate and unfairly distributed. It is expected to be filed by year's end.

The levy case is Thomas Thompson, et al, v. Clark Hunter and Morgan County School District.

mpowers@semissourian.com

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