September 06, 2008
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Missouri state judge deals blow to a massive school funding lawsuit


A Missouri state judge has dealt yet another blow to a massive school funding lawsuit, saying he believes Missouri is exceeding a state constitutional obligation to spend 25% of its budget on education. While not an official ruling, the statement by Cole County Circuit Judge Richard Callahan appears to resolve the last remaining question in a lawsuit brought by about half the state's school districts. Earlier this month, Judge Callahan rejected the school districts' claim that schools are not adequately or equitably funded and are in need of upwards of $1 billion more annually. His partial ruling essentially declared the state school funding system constitutional, provided that 25% of the budget is spent on schools. But the judge did not initially rule on whether that's occurring, inviting lawyers back to court to provide more testimony on the issue. After hearing arguments, the judge said he now believes the constitutional standard is being met. He made that declaration after state experts sliced and diced the budget, attempting to demonstrate to the court that the state spends as much as 37% of funds on schools. He said even a conservative interpretation leads him to believe the state is meeting the constitutional benchmark.

The seemingly simple question is complicated by disagreements over how to measure the size of the state's budget. For example, both sides in the case agree that while the state brought in $20.9 billion in 2006, about a third of those funds should be not considered part of Missouri's budget, since they came from the federal government. Marty Drewel, the state's deputy director of budget and planning, argued that the state should also whittle away funds dedicated to repaying bonds or obligations to taxpayers in the form of refunds. He and University of Missouri at Columbia economist Joseph Haslag outlined alternative ways to look at the budget, but in each case said the state is exceeding the 25% requirement. Alex Bartlett, a lawyer representing school districts, questioned both experts at length on the exact calculations used to define the size of the state budget. But he did not provide the court with his own numbers showing how the state is falling short of the spending requirement. He says he will supply that information to the court but is not optimistic he will change the judge’s mind. The school funding case is almost certain to be appealed to the Missouri Supreme Court.

St. Louis Post-Dispatch By Matthew Franck

[Editor’s Note: The Legal Clips summary of the court’s earlier ruling is below.]

NSBA School Law pages on Comm. for Educ. Quality v. Mo.