Lawmakers trade funding plans

JEFFERSON CITY, Mo. -- Democrats and Republicans disagreed Thursday about how best to apply the state's share of gambling revenues to education.

Lawmakers from both parties offered plans they said would fund public schools most effectively. But each party said the other's plan would actually put less money into schools.

Leaders of the House and Senate and Gov. Bob Holden have all said they are committed this year to full funding of the aid formula for school districts -- a commitment that will require $220 million in fresh money.

Holden has proposed to cover much of that cost through higher casino taxes and a new state lottery game.

On Thursday, Democrats led by Lt. Gov. Joe Maxwell spoke out in favor of Holden's plan, saying the state has too little revenue to fund the school aid formula without the gambling receipts.

Republicans, led by House Minority Leader Catherine Hanaway, countered that gambling revenues were always intended to supplement the funding formula, not to be counted toward it.

Funding formula

The funding formula considers such factors as enrollment, local property tax levies and the number of low-income students to determine how much state money each district receives. The greater a district's wealth, the less state funding it receives.

If lawmakers don't follow the governor's plan, they would have to find the money from elsewhere in the state budget, Democrats said.

Hanaway and Rep. Charlie Shields, R-St. Joseph, said they wanted to work with Democrats to find the money in the state revenues. Shields said the state ought to be able to reduce its budget as much as 20 percent and redirect the funds to education.

But the Republicans didn't say where those cuts should occur. First, the Republicans said, they need copies of reports issued by state departments that show how budget cuts will affect operations. The governor's office has not provided the information.

"We are reviewing their request and when we have a response we will let them know," said Holden spokeswoman Chris Kelly.

As for the gambling revenue, the Republicans proposed using part of it to create a fund from which a flat amount per pupil would be distributed to school districts.

"It will provide additional education funding to all Missouri schools equally and give schools complete flexibility to spend their money on their priorities, be they teacher salary increases, school construction or computers and equipment," Shields said in a prepared statement.

Republicans said their plan would result in more money for schools.

Democrats said schools would get less.

"It is clear to us that the Republican Classroom Trust Fund proposal destroys the single most important feature of the foundation formula -- equitable distribution of state education dollars to local school districts," Maxwell said.