School Finance Lawsuit At A Glance History

In 1999, a lawsuit was filed on behalf of students, parents and administrators in the Dodge City and Salina school districts alleging that the state’s school finance system was constitutionally flawed. The plaintiffs alleged that the state was not putting enough money into the system and that the money that was going into the system was not distributed fairly. Specifically, the plaintiffs argued that the districts that had the highest number of hard-to-educate students – those with disabilities, limited English proficiency or living in poverty – were not receiving enough funds to adequately address the challenges presented by those students.

In December 2003, Shawnee County District Court Judge Terry Bullock issued a preliminary order in support of the plaintiffs. Judge Bullock ruled that the current school funding formula violates the Kansas Constitution by failing to provide adequate funding for a suitable education and failing to distribute the money equitably or provide a rational basis for disparities in the distribution of funds. The judge gave the Kansas Legislature until July 1 to correct the formula, after which time he would issue his final order in the case.

At the start of the 2004 legislative session, Gov. Kathleen Sebelius presented a plan to increase funding to education by $300 million over three years by increasing sales and income taxes. The Governor’s proposal was defeated in both the House and Senate. The House approved a plan to increase funding for education by $155 million, also through increased sales and income taxes. The Senate rejected the House plan and considered several of its own, although none rose to the same level of funding the House had proposed and all relied on existing revenues. The Senate approved a plan for $82 million that was funded through existing revenues, but the plan was rejected by the House. At the end of the session, the legislature was unable to reach agreement on a school funding plan and adjourned without having approved any new money for schools or having changed the existing school finance formula. The legislature did, however, enact legislation allowing the state to seek an immediate appeal of Judge Bullock’s preliminary order. Normally, an appeal cannot be filed until a final order has been issued. Upon enactment of the new legislation, an appeal of Judge Bullock’s preliminary order was filed with the Kansas Supreme Court.
On May 11, 2004, Judge Bullock issued his remedies order in the case. This order ceased the expenditure of funds under all education funding statutes for the purpose of operating schools effective June 30, 2004. The order would, in effect, shut down Kansas public schools. In the order, the judge also outlined the elements of a constitutional funding scheme, as well as those elements that could not be included in a constitutional funding scheme. On May 12, the State Attorney General filed a motion with the Supreme Court seeking a stay of Judge Bullock’s order until the Supreme Court could rule on the appeal.

On May 18, the parties in the lawsuit filed a joint order seeking clarification of Judge Bullock’s remedies order. Specifically, the parties asked that the judge clarify whether the order ceasing the expenditure of funds for education would apply to the expenditure of funds related to financial obligations for the acquisition of capital assets. That same day, Judge Bullock issued a decision indicating that the order of restraint required in his remedies order did not prohibit school districts from paying general obligation bonds, temporary notes, no-fund leases and warrants, lease-purchase agreements or other financial obligations related to the acquisition of capital assets. The decision went on to say that the State Treasurer and other state officials were not prohibited from making payments to school districts from the school district capital improvements fund.

On May 19, the Kansas Supreme Court granted the stay requested by the state. The Court also indicated that the appeal would be placed on the "fast track" for resolution.

What Happens Now?
According to the Office of Judicial Administration, all briefs to be filed in the appeal will be completed by Aug. 10, 2004. Oral arguments before the court are scheduled for the week of Aug. 30.

A decision on the appeal could come as early as mid-October, although given the complexity of the case it is expected to take longer. Attorneys in the case expect a decision before the end of the calendar year. Should the Court find the school funding formula to be unconstitutional, it is expected that the legislature would be given a period of time to work on a revised formula. 

A full copy of the remedies order issued May 11, and preceding court decisions are available on the Shawnee County District Court web site at
http://www.shawneecourt.org./decisions/decisions.htm .  They are also listed below for your convenience.
 
May 11, 2004 99C 1738 Decision and Order Remedy for 99C 1738
May 19, 2004 99C 1738 Joint Motion to Clarify for 99C 1738
December 2, 2003 99C 1738 Eric and Ryan Montoy et al. vs. State of Kansas  Motion to Certify for 99C 1738
September 8, 2003 99C 1738 Eric and Ryan Montoy et al. vs. State of Kansas
  Letter Decision for 99C 1738

McPherson Unified School District 418
514 N. Main
McPherson, KS 67460
620-241-9400
It is the policy of McPherson USD 418 not to discriminate on the basis of sex, disability, race,
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