Suing school districts claim new funding plan makes things worse

~ The Committee for Educational Equality includes the Scott City and Jackson school districts.

JEFFERSON CITY, Mo. -- A group of more than 200 school districts claims a new a state funding plan worsens -- rather than solves -- alleged disparities among schools and still does not provide them enough money.

The Committee for Educational Equality filed an updated lawsuit Tuesday in Cole County Circuit Court, applying the same basic arguments it had raised in January 2004 to a new school funding formula passed by the legislature in May.

The bill only "exacerbated the constitutional infirmities of the Missouri school finance system," the school districts argue in their revised lawsuit.

The new law phases out the current method of basing state school funding largely on local property tax rates and wealth and instead sets a minimum amount of spending per student -- a target based on current spending levels by school districts deemed successful.

The new formula is to be phased in over seven years, starting with the 2006-2007 school year, and eventually would add about $800 million annually to the nearly $2.5 billion the state already spends on basic school aid. The law does not state how the state will pay for the plan.

Revised lawsuit

The revised lawsuit contends the lengthy phasing in is "constitutionally flawed." And it contends the state's new method of determining school funding also is inadequate an inequitable, giving only "the illusion of addressing student needs."

"The new formula is somewhat akin to reorganizing the deck chairs on the Titanic," said Alex Bartlett, a Jefferson City attorney for schools.

Since July 1, shortly after Gov. Matt Blunt signed the new funding plan into law, 22 school districts dropped out of the suing coalition -- some citing an increase in funding under the new formula. The Cape Girardeau School District is one of the 22 schools that dropped out of the suing coalition. Cape and some of the schools cited a possible increase in funding under the new formula for their reasoning for dropping out. The Committee for Educational Equality still includes 237 of the state's 524 school districts including Scott City school district and Jackson school district.

"I am glad to see they are continuing with the process," said Diann Bradshaw, Scott City superintendent. Students in Scott City deserve the same opportunities as students throughout the state.

Senate Majority Floor Leader Charlie Shields, the lead sponsor of the new funding plan, said it's frustrating that so many school districts still back the lawsuit.

"We believe the formula can be defended," said Shields, R-St. Joseph. "Apparently they're looking at the state budget in a vacuum. To come back and say $832 million is not enough money is not realistic, particularly considering the struggles we're facing right now with Medicaid and that higher education hasn't received any increase."

Blunt spokesman Spence Jackson also defended the new school funding plan as "constitutionally sound." By still pressing the lawsuit, schools districts essentially are pushing for "a massive tax increase on working families," Jackson said.

The suing school districts contend the state is shortchanging them by defining adequate funding in the new formula but delaying its full implementation. The money currently provided to schools in the state budget is $600 million short of what the funding formula calls for when fully implemented, the lawsuit contends.

Minimum spending

The new law sets a minimum spending amount per student -- estimated at $6,117 in combined state and local funds -- based on the current spending by districts that do well on a state performance report. But the lawsuit contends the methodology is flawed, because it excludes some districts whose students are meeting state achievement levels and includes others who are not.

The law also includes a cost-of-living adjustment for school funding, based on average wages in a region. But the lawsuit contends it functions "irrationally and inequitably."

Another factor in the new funding plan assumes all school districts have a property tax levy of $3.43 per $100 of assessed valuation. It would provide state aid for what districts don't raise at that level compared to what the formula says they deserve. That means districts with lower levies won't have the full difference made up, while those with higher levies won't have state aid reduced beyond that amount.

The lawsuit contends the levy assumption "will result in ever increasing disparities" in school funding, with students from poorer areas not getting the same educational opportunities as those from areas with higher property values.

Staff reporter Aurora Meyer contributed to this report.