Holden's education cuts backed by court

JEFFERSON CITY, Mo. -- In a win for executive authority but a loss for cash-strapped school districts, the Missouri Supreme Court on Tuesday unanimously affirmed the governor's constitutional power to reduce spending for public schools below levels set by the legislature.

Claiming an imbalance in the overall state budget, Gov. Bob Holden withheld nearly $200 million from the $4.55 billion appropriation for the Department of Elementary and Secondary Education when the fiscal year began July 1.

Fourteen public school systems sued to have the action overturned. They argued the Missouri Constitution shielded education from midyear spending cuts and that the governor was required to target other state departments for savings.

In a brief, unsigned opinion, the court said Holden's action was specifically authorized under Article IV, Section 27 of the constitution, which says a governor can "reduce the expenditures of the state or any of its agencies below their appropriations" when a revenue shortfall exists.

"It is clear from its provisions that, beyond the state's narrowly restricted capacity to borrow money, the constitution does not permit the state to spend money it does not have," the court said in its 6-0 opinion.

The court, in upholding a circuit judge's decision, said other constitutional provisions cited by the districts imposed no limitation on the governor's withholding power. The districts based their position on constitutional provisions that preclude the governor from exercising his line-item veto on public school appropriations and require education funds to be distributed annually.

Due to an unexpected influx of federal money, Holden released $75 million of the withheld funds on Dec. 1, the day before the court heard arguments in the case. Education officials around the state had anxiously awaited a ruling in hopes the court would order the remaining money distributed to local schools.

Oak Ridge superintendent Dr. Gerald Landewee said the ruling means his district will continue to make do with what it has.

"Despite the budget restrictions placed on the Oak Ridge School District, we have adapted and continue to provide a quality education to our students," Landewee said.

However, Landewee said he is concerned about the impact future cuts could have on the district.

Sikeston superintendent Stephen Borgsmiller said he is just satisfied the court finally settled the long-standing debate over the scope of the governor's budget-balancing authority.

The Sikeston district was the lead plaintiff in a similar legal challenge a decade ago. However, that case was muddied by side issues related to the desegregation of urban schools, and the Supreme Court sidestepped ruling on the governor's withholding power.

The Liberty School District in suburban Kansas City led the current case. Although it lost, superintendent Dr. Scott Taveau said the litigation helped raise awareness among lawmakers and the public of financial pressures facing local schools.

Holden, a Democrat, said the Republican-led legislature should bolster education spending so the state doesn't have to defend against lawsuits.

"This is only the beginning of the litigation war that will ensue if the legislature does not accept its responsibility to provide adequate funding for our schools," Holden said.

More than 200 school districts, including at least three dozen from Southeast Missouri, are preparing a lawsuit that claims the state is violating the constitution by providing inadequate education funding that is unfairly distributed.

Tuesday's decision was in State ex rel Liberty School District, et al., v. Gov. Bob Holden and Commissioner of Administration Jacquelyn White.

mpowers@semissourian.com

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