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School Funding Cuts to Be Spread Evenly

April 14, 2010

Gov. Jay Nixon on Tuesday directed state education officials to spread $43 million in mid-year funding cuts evenly to all public school districts in the state.

Nixon’s order ignores directions from the legislature that about 150 of the state’s 523 school districts be shielded from the cuts.

The Democratic governor said the legislature’s language instructing targeted cuts in House Bill 2014 amounts to changing a 2005 law in an appropriations bill, which has been found unconstitutional in Missouri.

Under Nixon’s directive, all schools will lose 2 percent of their total appropriations for the fiscal year, which ends June 30.

For Springfield Public Schools, Nixon’s directive means a less severe mid-year cut of about $874,000, instead of the $1.12 million cut the legislature approved.

"It’s less pain," said Springfield Superintendent Norm Ridder. "It’s m ore along the lines of bringing equity into the picture. We stand to gain a little from it."

The 24,000-student district has been trimming expenses for weeks in anticipation of the cut.

"Everybody is spending less," Ridder said.

Nixon’s directive follows the original recommendation from the Department of Elementary and Secondary Education to cut every district 2 percent. By exempting about 150 so-called "hold harmless" schools, several school districts in southwest Missouri were bracing for a cut two to three times larger than DESE first proposed.

The Ozark school district, for example, was set to lose about $800,000. Under Nixon’s directive, the district will get about $379,000 less for the current school year.

"It’s good news. We were very concerned," said Ozark Superintendent Gordon Pace, noting the budget year ends in 2 1/2 months. "We anticipated a cut but we’re relieved it will be shared across the state."

Nixon’s decision to ignore the language in House Bill 2014 got mixed reviews in the Capitol.

"I’m really grateful that it turned out that way because it certainly is the fair thing to do," said Rep. Sara Lampe, a Springfield Democrat who opposed shielding the hold harmless districts from cuts.
Some Republican lawmakers, however, scolded Nixon for predicting how a court might rule on the issue.

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"The governor does not get to say what is and what’s not constitutional," said Sen. Jason Crowell, R-Cape Girardeau.
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Lloyd Smith, executive director of the Missouri Republican Party, chided Nixon for assuming "near-dictatorial control of state government" by "using his executive powers to enforce his version of the law."

Smith suggested the governor should have vetoed the legislation and forced the General Assembly to rewrite the bill.

But Nixon’s move provides political cover to several Republican legislators who unknowingly voted their local school districts larger funding cuts than DESE proposed, said Sen. Dan Clemens, R-Marshfield.

"I think there were a lot of people hoping for that," Clemens said of Nixon’s action.

GOP House Budget Chairman Allen Icet has said the bill needed to be passed and signed by Nixon to authorize $86 million in funding for schools in June.

Amid some political hand wringing, the House last week sent to Nixon’s desk the bill that instructed DESE to only cut funding for schools that received funding increases this year under the 2005 foundation formula.

Most of the other 150 or so schools were classified "hold harmless" in 2005 because they traditionally had higher funding from local and state sources than the other schools. The 2005 law was meant to make state funding for most districts in southwest Missouri more proportionate with schools in the St. Louis and Kansas City regions.

Some lawmakers from areas with hold harmless districts wanted to shield the schools from cuts this fiscal year because they haven’t received increases in base funding as about 372 formula-dependent schools have. But the 2005 formula has provided additional funding to hold harmless schools in suburban and urban areas where there is a higher cost of living.

"There’s this notion that the hold harmless districts don’t ever get any more money," said Sen. Matt Bartle, R-Lee’s Summit. "There are hold harmless districts that are getting more money every year."

The Senate got bogged down in a lengthy debate Tuesday on how to spread out budget cuts for all school districts next year without greatly altering the 2005 foundation formula.

"There is no way to do this and keep everybody happy," said Senate President Pro Tem Charlie Shields, R-St. Joseph.