SCHOOL FUNDING HINGES ON LOCAL TAXATION

The state formula that funds public education in Missouri is complicated. Few people outside of school administrators, bureaucrats who work with it directly and some legislators can fully explain it.

It's no wonder that a public hearing on the formula recently drew a sparse audience. Dr. John A. Jones, research and salary director for the Missouri State Teachers Association, provided some insight on the mechanics of this complex issue.

On the positive side, Jones said the Cape Girardeau district could benefit financially from a settlement in the St. Louis desegregation case -- as much as $306,000. The additional funds would come from accounting changes in the formula.

Conversely, Jones said Cape Girardeau can't really expect any additional funding unless local voters approve it. It's an issue that deserves serious community consideration in 1999.

The school-funding formula was completely revamped with passage of the 1993 Outstanding Schools Act. It aimed at equalizing disparities in per-pupil spending throughout the state. A number of smaller school districts had sued the state in an effort to standardize the amount per pupil that districts received.

In exchange for urban taxpayers' sending more money to outstate Missouri, outstate districts were required to increase minimum property tax levies from $2 per $100 of assessed valuation to $2.75.

This equalization process actually hurt some of the districts like Cape Girardeau. The state designated these districts that would actually lose money under the new formula as "hold harmless." That means they wouldn't receive less state funding, but they wouldn't receive the any growth.

Ironically, a boon in local assessed valuation has hurt the district. Over the past six years, the county's assessed valuation has grown by nearly $100 million. Unbelievably, that growth has hurt the district in terms of the formula.

Cape Girardeau voters passed up an opportunity to generate more state funding in 1993. The narrow defeat of a 51-cent levy increase leaves a lasting sting. Some $900,000 in additional state revenue would have come from the state to the district each year. Today, the district would have to raise its local levy by more than $1 per $100 of assessed valuation to receive additional foundation formula dollars.

One of the few ways for the district to generate more local revenue at this point is to raise its local operating levy. And it's certainly a possibility.

Granted, voters approved a tax increase earlier this year, but that money is geared to brick-and-mortar improvements. It is very difficult for the district to operate year after year at the same state funding levels.

As the community and district look forward to 1999, the matter of improving district finances should receive careful consideration.