Classroom trust bill tied to loss limit repeal

JEFFERSON CITY, Mo. -- In order to change how gambling proceeds are distributed to fund education, supporters might have to agree to repeal the legal limit on how much gamblers can lose in Missouri casinos.

Since taking a chamber majority in January, House Republicans have pushed for the creation of the Classroom Trust Fund, under which gambling revenue would be distributed equally to local school districts on a per pupil basis. Currently, that revenue, about $205 million a year, is allocated through the complex formula that is intended to ease the funding disparity between rich and poor districts.

Gov. Bob Holden has said he would veto the bill. However, Holden wants to remove the loss limit of $500 per two-hour gaming session to help avoid cuts to education.

The version of the trust fund bill the Senate could take up as early as today also would repeal the loss limit, an idea House Republicans oppose.

State Sen. Charlie Shields, R-St. Joseph, is handling the bill in the upper chamber, which is less supportive of the trust fund than the House and more amenable to ending the loss limit. He said the changes he proposed give all sides some of what they want, but acknowledged that may not be enough for passage.

"It may collapse from its own weight," Shields said. "I don't know where this is going to fall in terms of votes."

The bill's House sponsor, Speaker Pro Tem Rod Jetton, R-Marble Hill, said he was surprised by Shields' changes and didn't believe the lower chamber would accept the loss limit repeal, which would generate another $70 million a year, in exchange for the trust fund.

"Removing the loss limit is not going to fly," Jetton said. "That is a killer change."

Whether Holden would be willing to accept the deal is unknown. During a Monday news conference on the devastating storms that struck Missouri on Sunday, Holden declined to comment on other topics.

Under the version already approved by the House, the Classroom Trust Fund would be implemented no sooner than the 2004-2005 school year and then only if the regular formula received full funding. Given the state's financial situation, opponents of the bill said that rendered it virtually meaningless as it could be many years before the formula is funded 100 percent.

Under Shields' version, the trust fund would be established for the upcoming school year. The first $205 million or so in gambling proceeds would continue to go into the formula each year. However, any money over that amount would be evenly divided among Missouri schools.

State Auditor Claire McCaskill issued a report last month that concluded the school funding formula is no longer serving its purpose of equitably distributing state aid. Passage of the Classroom Trust Fund would make matters worse, McCaskill said.

The bill is SB 288.

mpowers@semissourian.com

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