SCHOOL OFFICIALS LEERY OF FUNDING PLAN

A year after Senate Bill 380 changed the way Missouri public schools are funded, area school administrators say they can live with the legislation. It's what looms ahead that scares them.

New legislation, which started as a "cleanup" measure for SB-380, could have greater impact than the original legislation, Southeast Missouri school administrators say.

The Missouri House passed the measure and the Senate is scheduled to debate it this week.

Southeast area superintendents last week voted unanimously to attempt to kill the bill.

Cape Girardeau Superintendent Neyland Clark said if provisions in the draft legislation he has seen hold true, the Cape Girardeau School District could lose $800,000 or more.

In June Cape Girardeau voters will be asked to waive the Proposition C rollback, resulting in a 37-cent tax increase. Under SB-380, the increase would have meant additional state money to the district, but the pending legislation stops that.

"The basic formula is not supporting the local effort any more," Clark said. "All of a sudden they have built an inequitable system."

Jackson schools business manager Howard Alexander said he is watching another section of the proposal that could change how districts account for lease-purchase agreements in the past and future.

In 1989, the district funded the Orchard Drive Elementary and multipurpose high school buildings through lease-purchase.

"From everything we hear right now, we will be in a workable situation. It's not going to be financially devastating. We won't have to give the buildings back," Alexander said.

Jackson is among winners under SB-380. The law rewards school districts with growing enrollment. Already they have reaped an estimated $400,000 in new state money, with more possible next year.

Alexander said the additional state money means next year they will be able to hire additional teachers and give teachers a raise.

Next year, in addition to more state money, Jackson schools will have more local tax money to spend. Jackson's tax rate has been raised to $2.75, the state minimum.

While it brings more money for some districts, SB-380 also brings more rules on how money can be spent for all districts.

A specific amount, $121,732 in Cape Girardeau, must be spent on programs for at-risk students. Another 1 percent of state funds, $29,629 in Cape Girardeau, must be spent for continuing education for the staff.

Delta Superintendent Larry Beshears said his district could lose $17,000 thanks to another provision in the proposed legislation that equalizes assessment. The same provision could mean an added $5.4 million to St. Louis schools, he said.

"We hope we can survive without sinking," said Beshears. "The legislature adds on amendments at the last minute. The right hand doesn't know what the left hand is doing. There is a lack of clear lines of communication between the legislature, educators and even the Department of Education."

Nell Holcomb is among a handful of districts in Missouri that would have received less money as a result of the new formula. However, the formula contains a provision called "hold harmless," which means they will be funded at least at 1992-93 levels. The state funds were down just over $7,000 this year, but that was due to a decline in enrollment.

When the M&W plant was built in the Nell Holcomb School District it increased the district's local tax wealth. As a result, the school district receives less money from the state.

However, Nell Holcomb Superintendent David Fuemmeler said, "The cleanup bill has taken on a much broader prospective than it was originally intended to do. I think that it's probably one of the scariest issues for local school districts.

"From what we've seen, it definitely restricts what you can do with local money," Fuemmeler said. "It takes away local decision-making by local school boards on how to use local tax dollars."

For example, the bill restricts how much money could be spent for capital improvements like replacing a roof.

"Every interest group has tried to get their part implemented or clarified in this legislation," Fuemmeler said. "It seems the cleanup may affect education in the state even more dramatically than 380."

Oak Ridge is among school districts slated to be winners under the new formula.

With the added $43,909, Tatum said the school district has been able to replace some reserve the district had dipped into before.

A guidance counselor and at-risk program coordinator are scheduled to be hired and teachers should get a raise.

But Tatum has put the plans on hold until the legislative session ends Friday.

"Right now we're sweating because of the things in correction bill. There are still some uncertainties," Tatum said.

The funding equity promised with SB-380 is in jeopardy because the legislature this year has not funded education at the promised level.

This year the phase-in called for 75 percent of state money to be calculated under the old formula and 25 percent calculated with the new formula. Schools did receive 75 percent under the old formula, but only 22.4 percent through the new formula.

Next year called for a 50-50 split, but education department estimates show 50 percent old formula and 42 percent new formula.

In Oak Ridge, funding at 42 percent instead of 50 percent costs the district about $50,000. "That's at least two teacher salaries," Tatum said.

Scott City Superintendent Douglas Berry said SB-380 hasn't been beneficial to his district.

"We are a hold-harmless school district this year, which means we are not receiving any increase in state aid," he said. "We will also be a hold-harmless school district next year, and again we will not receive any additional state aid. Our costs continue to go up, but our state aid remains the same."

Sikeston schools did not receive an increase in state funding this year as a penalty for a low local tax rate. Sikeston's levy is $2. But next year the local tax rate will increase to $2.75. Sikeston schools will receive about $900,000 in new local tax money and an anticipated $600,000 in new state money.

While SB-380 might be good for Sikeston, Superintendent Bob Buchanan isn't happy with the situation statewide.

The cleanup bill was originally designed to correct one provision in SB-380.

Buchanan said, "This is no longer a cleanup bill." As of Thursday it was 60 pages long.

It included items ranging from lease purchases to salary ratios and transportation.

"It's more of a damaging piece of legislation than Senate Bill 380," Buchanan said. "We are trying to get the language changed so it will not devastate schools."