$1 billion bill for education reform passes

JEFFERSON CITY, Mo. -- The Missouri Legislature granted final passage to a nearly $1 billion public school funding plan on Thursday amid complaints about the lack of a revenue source to pay for it.

The House of Representatives on a 94-65 vote sent the bill to Republican Gov. Matt Blunt to be signed into law. The Senate had earlier endorsed the compromise version of the measure 24-9. Both votes generally fell along party lines with most Democrats opposed and all but a few House Republicans in support.

Blunt said the bill, which he intends to sign, creates a much-needed change in how Missouri distributes state money to local school districts by moving away from a funding formula driven by local property tax rates.

"This is the right approach," Blunt said. "We need a formula focused on the needs of a Missouri school child, not a formula based on the taxing capacity of the school district."

Republican House leaders cut off debate and forced the vote after less than 40 minutes. Democrats complained the bill was being rushed through with many important issues left unresolved.

"It saddens me that the most important issue we'll face not just in this session but in our term has been shut off," said assistant House minority floor leader Paul LeVota, D-Independence.

Before LeVota could finish registering his objections, House Speaker Pro Tem Carl Bearden, R-St. Charles, had his microphone turned off.

The new formula will be phased in over seven years, starting with the 2006-2007 school year and ending with the 2012-2013 term. Including the 2013-2014 school year, the cost of the formula and a supplementary fund for small districts over the phase-in period is estimated at $952 million. For the fiscal year beginning July 1, Missouri is slated to allocate $2.9 billion to local schools.

State Rep. Terry Swinger, who served on the House committee that helped craft the bill, said the lack of a dedicated revenue source to pay for the new formula is troubling. He said supporters are counting on a major upswing in the state economy to provide sufficient funds through natural revenue growth.

"I hope they're right, but we don't know whether that is going to happen," said Swinger, D-Caruthersville.

The amount of additional money needed to fully fund the system is estimated at $109 million in the first year and $165 million the year it is entirely implemented. In the second year of full implementation, the estimated increase would drop substantially to $39.8 million.

State Rep. Brian Baker, the bill's sponsor, said the long implementation period provides reasonable yearly funding goals.

"We will have the revenue to phase this in and fund the formula," said Baker, R-Belton.

Instead of basing state funding on the size of a district's local levy, the new formula assumes all district have a levy of $3.43 per $100 assessed valuation. Unlike the current system, districts are neither rewarded for having a higher levy nor punished for having a lower one.

The formula ensures that per pupil funding for each district will be at least $6,117 during the first two years. That minimum will be adjusted biennially. With local revenue, many districts will continue to spend more than the minimum.

Districts with disproportionate numbers of students who are poor, disabled or aren't proficient in English will receive extra money. For the first time, districts in regions with high overall wages will receive cost of living adjustments.

In addition to the formula, districts with fewer than 350 students will share in a special $15-million-a-year fund for Missouri's smallest schools. All districts of that size will share in the first $10 million, while those with tax rates of at least $3.43 will split the remaining $5 million.

The bill is SB 287.

mpowers@semissourian.com

(573) 635-4608

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Estimated increases in state money select Southeast Missouri school districts would receive over 2005-2006 levels during the 2006-2007 school year, when a new education funding formula is 14 percent implemented, and total increases as of the 2013-2104 term:

District County 2006-2007 Total growth through

increase 2013-2014

Meadow Heights Bollinger $89,129 821,697

Leopold Bollinger 91,551* 767,369*

Zalma Bollinger 113,975* 956,528*

Woodland Bollinger 176,801 1,559,721

Jackson Cape Girardeau 721,007 6,510,101

Delta Cape Girardeau 126,446* 1,093,753*

Oak Ridge Cape Girardeau 78,139 678,892

Cape Girardeau Cape Girardeau 348,376 3,760,437

Nell Holcomb Cape Girardeau 63,546 590,653

Perry County Perry 210,597 2,199,452

Altenburg Perry 31,526* 288,367*

Scott City Scott 179,625 1,592,33

Chaffee Scott 78,432 732,974

Kelly R-IV Scott 203,965 1,771,549

Scott Co. Central Scott 68,725 627,517

Sikeston Scott 553,526 5,182,872

Kelso Scott 49,883* 446,424*

Oran Scott 142,245* 1,214,005*

*Includes additional money that is separate from the formula for districts with fewer than 350 students.

SOURCE: Senate Appropriations