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The Classroom Trust Fund

A campaign promise that will ‘blow a hole in the foundation formula’

As I contemplate what “New Year” message I want to share with you, my mind is still on the results of the November elections and how those results will affect education in the months to come. Since the Missouri General Assembly convenes in January, I will focus on a campaign promise made by most members of the new majority in the Missouri House of Representatives.

The new Speaker of the House is Catherine Hanaway. Rep. Hanaway, and most other Republicans, campaigned on an issue called the Classroom Trust Fund. You need a primer on this topic because of the effect it and related legislation may have on you, your students and your school.

The Classroom Trust Fund is a fairly simple idea. Take all of the gambling revenue out of the state’s general fund, and distribute it on a per-pupil basis to schools throughout the state. When this idea was presented in the 2002 legislature, the gambling revenue generated about $213 per pupil. Every school district would receive this money regardless of local wealth or student needs. This idea may have some appeal, especially if you are in a hold-harmless school district.

If you think this sounds too good to be true, you are correct. When the gambling money is taken out of the state’s general revenue, a huge hole remains. The question everyone should be asking is this: “How will Missouri replace the gambling money in the general revenue?” I know that Rep. Hanaway and many others campaigned on providing the Classroom Trust Fund and full funding of the school foundation formula.

Well, it doesn’t look as if the economy will suddenly turn around and provide huge amounts of revenue. I didn’t hear these same politicians campaign to raise taxes to provide state services. Unless Rep. Hanaway decimates many other state services to provide money for the formula, the Classroom Trust Fund will blow a hole in the foundation formula.

The foundation formula was crafted to distribute money to school districts in an equitable fashion, factoring in poverty, student needs, school district challenges and the local tax effort. It’s not perfect, but it’s the best system we have for equitably distributing state dollars to schools. To fund the Classroom Trust Fund without fully funding the foundation formula would turn equity on its ear.

Missouri was one of the few states that substantially increased funding for schools
in 2002-2003. Even though Governor Bob Holden and the legislature were able to increase state funding of the foundation formula for the current year, the poor economy blocked full funding. It does not make sense that less than a year later we would be able to fund the foundation formula fully and provide extra funding for the Classroom Trust Fund.

Missouri NEA will reach out to Rep. Hanaway and the new majority in the House of Representatives to find real solutions for providing adequate and equitable funding for Missouri’s schools. Our solutions must meet the needs of all school districts, including hold-harmless districts, and maintain equity. I will be calling on you to help us in this effort.

By Greg Jung
Missouri NEA President

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