New school funding plan falls short of promise

Apparently, being held accountable to the expectations of the public and the fundamental rights of Missouri’s school children is becoming uncomfortable for some of our elected officials. Sens. Shields, Nodler and Bartle are trying to resurrect a far-fetched proposal to prevent school districts from taking legal action to hold the state accountable for school funding adequacy and equity. Recently, Rep. Brian Baker strongly criticized the Committee for Educational Equality (CEE) and the Coalition to Fund Excellent Schools (CFES) for deciding to continue their legal claims that the state is not adequately and equitably funding our public schools. Baker claims the newly enacted formula for state school aid is “fair,” “adequate” and “defensible.” If he is correct, there is no need to hide from the accountability provided under the constitution. However, major concerns remain about the adequacy and equity of the new school funding plan.

Baker argues that the new formula is “based on student need and success.” Indeed, the new formula has the appearance of such a formula and all the bells and whistles to implement such a formula. This is a very positive step. But the devil, as they say, is in the details. By rejecting the conclusions of the Augenblick study—the only comprehensive study of educational adequacy conducted so far in Missouri—and lowering the key cost factors in the formula below those research-based levels, the new formula will shortchange Missouri’s public schools by hundreds of millions of dollars each year, even once it is fully in place in eight years.

It is no surprise that the school districts chose to proceed with their legal efforts to improve school funding. For the next few years, the new formula does little to affect the adequacy or equity of school funding in Missouri. The formula will not even begin to go into effect until 2006-07, and it won’t be fully implemented until 2012-13. School districts have state and federal mandates to meet, and they can’t wait eight more years for adequate funding. If the court doesn’t intervene before then, today’s fifth graders will graduate before the formula reaches its definition of adequacy.

The one thing the new formula bill does do quickly—redistribution of the one-cent sales tax revenues for schools, known as Proposition C revenues—is something that was scarcely noticed by legislators, including the bill’s proponents, until after the bill was passed. School districts are now realizing that the redistribution of this funding based upon the new weighted pupil count will benefit some districts while hurting others. Only recently have districts been informed of the magnitude of this change.

For some districts, future Prop C revenues will be reduced by nearly one million dollars per year compared to the distribution the districts would receive under the current formula. Other districts will receive an increase of at least four million dollars per year in Prop C funds. The bill’s proponents have tried to downplay the impact of this change by assuming very high growth rates for sales tax revenues in the coming years, growth that partially masks the real change in Prop C distribution. Ironically, those same assumptions imply overall state revenue growth that could fully fund the new formula within three years or less, if we were willing to devote those extra revenues to the formula.

Adequate funding for public schools is a vital taxpayer investment. This investment pays dividends by ensuring our children grow up to be healthy, educated and productive citizens. The new formula has the appearance of adequacy and equity, but it currently lacks substance. The base funding level is inadequate; dedicated funding for the extra needs of poor and disabled students is inadequate; and school districts, and their students, must wait a total of eight years just to reach this inadequate level.

Missouri has much work left to do to improve and fund the new formula during the next session and in future years to ensure adequate and equitable funding for our public schools.

By Otto Fajen, legislative director for the Missouri National Education Association