Legislative panel considers ideas for new school formula

JEFFERSON CITY, Mo. -- A plan that calls for basing school funding on what it actually costs to educate Missouri's students rather than on property values and taxes was reviewed Tuesday night by a legislative panel.

The Joint Committee on Education is working to rewrite the state's method of paying for public schools this year, with a lawsuit pending that claims the current formula is unfair and inadequate.

The state's current method relies on a variety of factors, but it is largely driven by an area's property tax base. Property values and tax rates vary widely across Missouri.

A new method proposed by committee chairman Sen. Charlie Shields, R-St. Joseph, would determine which schools in Missouri are successful by looking at state reports that cover factors from student performance on standardized tests to college placement and dropout rates. A basic student funding level would be established based on what those schools spend.

Schools could receive additional state money for extra costs, such as those associated with children who are poor, have disabilities or whose first language is not English.

Shields estimated the new formula would cost the state $400 million to $600 million more per year, though it would be phased in over time.

Under the proposal, districts in which taxes are increased to raise money for schools would not see a drop in state assistance.

"If they choose to help themselves, they should maintain the benefits of that action," Shields said.

But districts whose funding increases merely because new businesses move in or property values rise could lose some state funding.

The committee is eventually expected to consider other ideas, including Gov. Matt Blunt's, for changing portions of school funding.

Blunt proposed allowing districts to give up their state funding in exchange for freedom from most state regulations. He also called for giving school districts the option of raising a local sales or income tax. Currently, property taxes are the only way schools can raise local money. Blunt also said gambling money should be distributed on a per-pupil basis, rather than through the formula as it is now.

Critics have said the spending disparity among Missouri schools could widen with Blunt's proposed changes.

The state last overhauled its school funding formula in 1993, although several tweakings have occurred since.