PLANS STUMBLE OVER LACK OF MONEY

JEFFERSON CITY - Members of the Missouri General Assembly have begun a spring break, with many issues left to resolve before it can adopt a new school foundation formula for distributing over $1 billion in state funds to districts around the state.

Education committees in both the House and Senate worked long hours all week trying to get bills near a final form before taking the break. When lawmakers return to work on March 22, completing a new formula will a top priority.

Even though it has been a priority the last several years, legislators have failed to come up with a new plan. One of the big reasons for the lack of a plan is the amount of money it will take to properly fund a new formula and keep districts from receiving a loss in revenue.

One incentive lawmakers have now is a January ruling by Cole County Circuit Judge Byron Kinder that the present formula is not equitable or adequate to meet the needs of elementary and secondary education. Kinder delayed implementation of his ruling until late August to give legislators time to react.

"There really is no consensus yet and we have a lot of work ahead of us," said Rep. Marilyn Williams, D-Dudley, who is a member of the House Education Committee. "There are some other ideas out there and an opportunity for a great deal of compromise."

Williams also served as a member of a joint House-Senate task force that worked earlier this year to develop a formula that would comply with Judge Kinder's ruling.

The House committee on education has not yet passed out a bill, but the Senate committee passed one Thursday afternoon before adjourning. Both education committees are considering versions similar to the task force plan.

Under that plan, which also includes a set of education reforms, there would be a minimum expenditure of $3,450 per pupil; a minimum local property tax of $3; a guaranteed tax base at the 97th percentile, assuring all districts $115,000 in property wealth per pupil; and taking $73 million in Proposition C funds and using it in the formula, because it would not be needed for rate rollbacks due to the new minimum property tax rate.

Full funding of the program would require $558.4 million in new state funds, and $184.7 million in new local funds. With the locally funded hold harmless provision, the plan gives only seven school districts less state and local revenues than in the current system.

Rep. Larry Thomason, D-Kennett, who is co-sponsoring an alternative bill to the task force plan, argues there is no way voters will approve the large tax increase necessary to implement that plan.

"After our failure on Proposition B, I can't imagine we are going to be able to get the public to agree," said Thomason. "Regardless of the committee's output and whether it will meet Kinder's test or not, I think there will be a lot of problems getting the public to accept a nearly $600 million tax increase for education."

Williams also has reservations about being able to pass a large tax increase. "I support the concept of equal funding and equal access, but I still have some reservations as far as the funding mechanisms," said Williams.

The accompanying reform proposals, known as the New Vision Act, are also causing Williams some reservations.

The proposals of the act include: ambitious student outcome goals, including raising all students to high levels of achievement on thinking and problem solving tasks; high quality curriculum standards reflective of the best practice across the country; a new, performance-based student assessment program that would measure progress toward the new student outcome goals; a heavy investment in the staff development needed to provide teacher expertise to offer this new curriculum; and rewards for showing progress and sanctions for consistently not producing improvements in student learning.

Thomason said the plan he is supporting would decrease the size of the tax increase that would be needed, but still comply with the guidelines of the judge's decision.

Known as the "Leven Formula," named for a St. Louis University professor, it would provide 72 percent of the state's 540 school districts with a net gain in money. Eighty-one percent of the 788,000 students would have a net gain in funds to their school districts.

"In his ruling, Judge Kinder points out there is a gross funding inequity," said Thomason. "He mentions specifically in his finding that he thought a simplified formula like the Leven formula would be acceptable.

"We don't know if the task force formula would work, but we do know he would accept the Leven formula as equitable."

Under the Leven plan, there would be a $300 million increase in the foundation formula appropriation but putting some Proposition C money into the formula and by shifting some cigarette tax revenue and foreign insurance tax to the formula.

The plan also calls for a corporate income tax increase and a cap on the amount of federal income tax that can be deducted on state income tax returns.

Thomason and Williams both agree that a new formula is essential, because there is no way to comply with the court decision without a new formula or a huge influx of money.

"To fully fund the present formula it would take so much state funding that it would ruin other programs," said Thomason.

Williams said she is unsure which approach is the best one to take, but plans to review the proposals during the break. She also plans to meet Thursday with all superintendents in her district.

"After next week, I should have a pretty good idea where I feel we need to go on this."