STATE SENATE: SCHOOL FORMULA WINS FIRST ROUND APPROVAL

JEFFERSON CITY - The Missouri Senate gave first round approval to a new school foundation formula early Thursday morning.

The formula increases the minimum tax levy for local school districts but does not address the issue of raising taxes to fund increased costs of the new formula.

The formula generally follows the approach recommended by a joint House-Senate task force that met earlier this year. It was approved 21-11 at 1:12 a.m.

Area senators were divided in their votes for the bill. Sen. Peter Kinder, R-Cape Girardeau, was one of five Republicans in favor of the bill. Sen. Jerry Howard, D-Dexter, favored the measure, but Sen. Danny Staples, D-Eminence, was the only Democrat voting against the bill.

The three agreed the bill is a long way from receiving final approval and that there is still a possibility of a special session being called to resolve the issue.

Thirty amendments to the bill were considered, including 25 on Wednesday night. The legislation is a priority of Gov. Mel Carnahan, who listened to Senate proceedings on a speaker in the office of Sen. Mike Lybyer, D-Huggins, across the hall from the chamber. After the vote, Carnahan moved to the door of the chamber and shook hands with senators.

"Certainly I'm pleased with the progress. We've got a very credible bill attacking a very real problem," said Carnahan.

Kinder, whom the governor visited Thursday morning as thanks for his support, said he was not committed to final passage of the bill next week and wanted to study it in detail.

"This chamber has not passed a foundation formula in 15 years, and I thought it was important to get us a formula to move the bill along," said Kinder. "We got far less safeguards in the bill than I wanted, but there are still bites left at the apple. But I still think we are headed to a special session."

Kinder argued that voters sent legislators to Jefferson City to draft a new school formula, and he was committed to doing that.

"There was definitely an air of tension and excitement in the chamber, and it was a very, very long evening," said Kinder. "We went back to work at eight last night amid talk we would see the sunrise."

Staples said he voted against the bill because he felt the minimum levy for local school districts was too high, but noted he would likely vote yes on final passage next week.

Staples joined with other senators in attempting to have the minimum local levy lowered from $3 to $2.50. After that amendment failed, he sought a $2.75 levy, and that too was defeated. Later, an amendment was approved that sets the minimum levy at $3, however, with the Proposition C rollback provisions, the actual levy would be $2.75.

Kinder said he also supported a lower local levy.

"I voted against the bill," Staples explained, "not because I am against education or the concept, but I voted against it as more of a protest vote on raising the taxes in rural Missouri."

Staples pointed out that of 26 school districts in his senatorial district, all but two have current levies of $2 or less.

Howard and Staples said they would have preferred having the funding package attached to the bill, but it will be considered in a separate bill.

"Any businessman doesn't buy a business until he knows what it will cost, what the interest rate will be, and what his payments will be," said Staples. "We passed a mechanism without doing that ... I think we had the cart before the horse."

Howard pointed out that the bill has a modified hold-harmless provision, which is tied to the local levy and guaranteed tax base.

"It is not anywhere near done, but I think we've got as good of a compromise as we're going to get," said Howard. "Once this formula gets to the House I don't know what it will look like. There is no telling."

Kinder said the Senate Republican Caucus was assured by Senate President James Mathewson earlier Wednesday evening that he would start work right away on a tax plan to fund the formula if a bill were passed.

Staples said he does not believe members of the House will support the high minimum levy for local school districts and believes the bill will hit a snag there.

"Several members of the House I have talked to have said they are concerned about the local levy and want to first see what the revenue structure is before they vote on it," said Staples.

"Everyone will be studying the bill this weekend," he added. "I'm sure the votes are there to pass it on third reading. If there is a bill, for the most part it will be drafted in a conference committee."