School districts claim rural tax collectors are costing them money

JEFFERSON CITY, Mo. -- Suburban school districts claim they're being shortchanged by inaccurate property tax collection in rural areas, part of their overall push to rebuild Missouri's school funding system.

Attorneys representing the school districts told Cole County Judge Richard Callahan Friday that they believe rural counties undervalue property and don't collect enough local taxes to support their schools. That forces the state to give them more money while penalizing districts that more accurately assess their property.

"Every county has to get equalized assessed valuation or else we are in violation of the constitution," said Jim Owen, an attorney representing the Committee to Fund Excellent Schools, a group of mostly suburban districts.

Owen's claims came during closing arguments in a seven-week-long trial by districts suing the state to provide more education funding.

The districts said they have lost money to the inadequate tax assessments. The Rockwood district, for example, estimated it would lose between $1.5 million and $10 million in funding over the next seven years if there wasn't a change.

Attorneys representing taxpayers who are defending the state system criticized the districts for not showing widespread problems with the property assessments and ridiculed what they thought was a "bootstrap argument" to get the state to provide more funding.

"This is nitpicking by the Clayton and Ladues of the world," said attorney Joshua Schindler.

The current school funding system was created two years ago, using 2003 and 2004 property tax data to determine how to mix state and local money for school districts.

Expert witnesses during the trial backed up Owen's contention the formula was based on incorrect numbers. Owen said he wants Callahan to demand that lawmakers convene a special session to rebuild the system.

Callahan responded that while the evidence of inaccurate assessment was "somewhat persuasive," he noted that legislators are not barred from relying on imperfect information in crafting laws.

Karen Winn, a state assistant attorney general, said the data was certified by the state tax commission and represented the latest and most accurate tax information available.

"What else did they have to work with?" Winn asked.

About half of the state's 524 school districts are involved in the lawsuit, among the largest ever filed in Missouri. Callahan will spend the next several weeks deliberating and pouring over scores of exhibits and legal briefs filed in the case.