JEFFERSON CITY, Mo. -- A bill passed by the Senate could allow lawmakers to provide a smaller funding increase for public schools and still claim to have given them the full amount called for under a state formula.

The Senate voted 29-2 Monday for the legislation that would reduce next year's increase in the school funding formula to $125 million.

That's below both the $220 million increase initially sought by Gov. Bob Holden and the $175 million increase that the House approved through its own recalculation of the formula.

Public elementary and secondary schools are receiving about $2 billion this school year.

Most of Missouri's 524 public school districts get state money based on a formula that, among other things, calculates the assessed property values across the state.

Because property values and local tax rates rise annually, the amount the state pays school districts also rises annually.

Top priority

Holden has said that fully funding the school formula is a top priority, but he has declined to name a dollar amount that he views as satisfactory.

The House rejected the Senate's version, and legislative negotiators are to try to work out a compromise.

Regardless of the amount authorized, schools would only get what is appropriated through the fiscal 2003 budget, which starts July 1. House and Senate members are just beginning to negotiate a final version of the budget.

House Speaker Jim Kreider, D-Nixa, has refused to appoint negotiators for most budget bills until the school funding issue is resolved.

The $220 million increase requested by Holden assumes the formula is calculated as usual.

Seeking to save money, the House passed a bill changing the formula by averaging previous years of assessed property values.

The change would flatten funding spikes that occur every other year under the present formula. For next year, schools would get a $175 million increase.

The Senate version strikes the House change and lowers the required amount to $125 million through an amendment by Sen. Harold Caskey, D-Butler. Caskey was the primary author of the Outstanding Schools Act, passed in 1993, that increased taxes and revamped the way school funding is calculated.

Caskey's amendment Monday makes an adjustment to the guaranteed tax base calculation used in the formula. The guaranteed tax base is the measurement of the school districts' average statewide assessment value on a per student basis.

A second portion of the formula includes school districts' local tax revenues.

The difference between the two factors is what the state pays to most local school districts.

Caskey's amendment would close the gap between what schools' guaranteed base and their local revenues, reducing the amount the state would owe.

"It does not impact future years," Caskey said of his amendment. "It's not a permanent fix. It addresses our budget crisis for this year."

Caskey said lawmakers would have to revisit the issue next year to readjust the formula to provide proper funding for the fiscal year beginning July 1, 2003.

"(Next year) will be another crisis year," Caskey said.

Voting against the bill were Republicans Marvin Singleton of Seneca and Sarah Steelman of Rolla.

Several amendments were attached to the legislation, including provisions authorizing school literacy programs and allowing students to take time off if they are involved in programs such as FFA.