South Dakota Attorney General calls for audit of districts challenging state finance system
South Dakota Attorney General Larry Long is calling for a state audit of about 70 school districts and the South Dakota Coalition of Schools (SDCS) to determine whether they are illegally funding a lawsuit that challenges the state's school financing system. Mr. Long has asked the state auditor general to conduct audits of the coalition and the districts. In prior cases, the South Dakota Supreme Court has ruled that a school district has no legal standing to challenge the constitutionality of a law, Mr. Long says, and also has ruled that school districts cannot pay the legal fees of some other organization or person. He believes it is improper for taxpayers in school districts to fund a lawsuit against the state, which must use taxpayers' money to defend against the lawsuit. But Scott Abdallah, a lawyer representing parents who are pursuing the lawsuit on behalf of their children, says the state is seeking to derail the lawsuit by blocking funding because state officials are afraid to have the court system determine whether schools are being funded adequately.
The lawsuit is based on a study done for school districts that found annual funding for K-12 education is falling short of needs by $134 million to $406 million. After a hearing last month, state circuit court Judge Lori Wilbur ruled that she would consider whether the funding system violates the constitution, but she said courts have no authority to order the legislature to spend more money. A trial is tentatively set for next year. The state argued that the SDCS should be dismissed as a plaintiff because it represents school districts that have no authority to sue the state, challenge the constitutionality of state law, or make a claim against the state treasury. At the hearing, the coalition agreed to be removed as a named plaintiff, leaving only the parents as plaintiffs. Mr. Abdallah says state law clearly allows school districts to pay money to belong to a coalition. Once the money is contributed to the SDCS, the districts have no control over how the money is spent or how the lawsuit is conducted, he says. He contends the funding arrangement is legal because no school district is suing the state or controlling the lawsuit. He is asking the auditor general to deny the attorney general’s request for audits. Mr. Long says he had to seek the audits because the SDCS avoided the lawsuit-funding issue during the court hearing. If the audits find that school districts have improperly spent money, each district's lawyer would have 60 days to make sure the money is paid back to the district. Mr. Abdallah says Mr. Long has a conflict of interest in raising the allegation of illegal funding of the lawsuit because he is representing the state in the case.
Sioux City Journal
By Associated Press
[Full story]
[Editor’s Note: Background on the lawsuit is below.]
[NSBA School Law pages on South Dakota finance suit]