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OpinionDecember 19, 1995

With bipartisan support, a bill has been introduced in the Missouri Senate that would reverse a key funding provision of Senate Bill 380 (the Outstanding Schools Act). Under that measure, railroad and utilities revenue that previously went directly to local districts such as Cape Girardeau schools was siphoned off into the foundation formula by which the state distributes hundreds of millions of dollars to local districts. ...

With bipartisan support, a bill has been introduced in the Missouri Senate that would reverse a key funding provision of Senate Bill 380 (the Outstanding Schools Act). Under that measure, railroad and utilities revenue that previously went directly to local districts such as Cape Girardeau schools was siphoned off into the foundation formula by which the state distributes hundreds of millions of dollars to local districts. For Cape Girardeau schools, this provision of SB 380 means a loss of $700,000 in annual funding.

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The bill's co-sponsors, who include Sen. Peter Kinder, R-Cape Girardeau, contend that this funding should never have been diverted into the state formula. Cape Girardeau school officials agree. In fact, earlier this fall the local district joined approximately 30 districts across the state in a court challenge to this method of siphoning off the railroad and utility money. The Kirkwood school district in St. Louis County took the lead in bringing this legal challenge. The suit is pending in circuit court.

Under SB 380, districts such as Cape Girardeau's were designated "hold harmless" districts, by which it was meant they wouldn't lose funding under the new formula. The removal of this money at the very least leaves Cape Girardeau fully $700,000 below where it used to be. Some "hold harmless." Lawmakers should pass this measure to restore this funding to the local districts from where it was taken.

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