Lake View School Dist. No. 25 v. Huckabee
| Decision Date | 15 December 2005 |
| Docket Number | No. 01-836.,01-836. |
| Citation | 220 S.W.3d 645 |
| Parties | LAKE VIEW SCHOOL DISTRICT NO. 25 OF PHILLIPS COUNTY, Arkansas, et al., Appellants, v. Governor Mike HUCKABEE, et al., Appellees. |
| Court | Arkansas Supreme Court |
Sharpe, Beavers, Cline & Wright, by: Brad Beavers, Forrest City, for appellant, Barton-Lexa School District, successor in interest to Lake View School District; and amicus curiae, Forrest City School District.
Friday, Eldredge & Clark, by: Christopher J. Heller, Little Rock, for appellant, Little Rock School District.
Matthews, Campbell, Rhoads, McClure, Thompson & Fryauf, P.A., by: David R. Matthews, Rogers, for appellant, Rogers School District.
Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C., by: M. Samuel Jones, III, Little Rock, for appellant Pulaski County Special School District.
Mike Beebe, Att'y Gen., by: Tim Gauger, Sr. Ass't Att'y Gen., and Mark Hagemeire, Ass't Att'y Gen., Little Rock, for appellee, Governor Mike Huckabee.
Wilson Law Firm, P.A., by: E. Dion Wilson, Helena, for amici curiae, Earle School District and Helena-West Helena School District.
Sharon Street, for amici curiae, DeQueen School District, et al.
Barrett & Deacon, by: D.P. Marshall, Jonesboro, for amici curiae, Arkansas State Chamber of Commerce and Associated Industries of Arkansas, Inc.
Before this court is the motion by Intervenors Rogers School District No. 30, Barton-Lexa School District, Little Rock School District, and Pulaski County Special School District, filed October 24, 2005, for action upon the Special Masters' Report. Previously, Rogers School District and others moved this court to recall its mandate, reappoint masters, and order the State Defendants to show cause why they should not be held in civil contempt for failure to comply with this Court's previous orders, which we granted on June 9, 2005.1 A total of forty-nine school districts so moved or joined in at least part of that original motion as intervenors or amici curiae (hereinafter collectively referred to as Rogers School District).
By our decision on June 9, 2005, we granted part of Rogers School District's original motion by recalling the mandate in this case and by reappointing Bradley D. Jesson, former Chief Justice of the Arkansas Supreme Court, and David Newbern, a former justice of the Arkansas Supreme Court, to file a report and make findings of fact regarding the following issues, in addition to any other issue they deemed relevant to the State's constitutional compliance:
(1) this court's jurisdiction to hear the instant motions;
(2) whether the General Assembly at its 2005 regular session retreated from its prior actions to comply with this court's directives in Lake View Sch. Dist. No. 25 v. Huckabee, 351 Ark. 31, 91 S.W.3d 472 (2002), particularly with respect to the General Assembly's actions or inactions in relation to Act 57 and Act 108 of the Second Extraordinary Session of 2003;
(3) whether the foundation-funding levels for the next biennium assure a continual level of adequate funding for Arkansas students; and
(4) whether the General Assembly's commitment to facilities funding meets the adequacy criterion.
On October 3, 2005, the Masters filed an 83-page report with this court which addressed the issues requested, as well as other issues they deemed relevant, and made findings of fact. On October 24, 2005, Rogers School District filed the instant motion requesting this court to adopt the Special Masters' findings of fact and recommendations, to call upon the Governor to convene a special session of the General Assembly for curative legislation, and to rule certain acts of the 2005 legislative session unconstitutional as violative of the equal-protection sections of the Arkansas Constitution. Rogers School District further asked this court to retain jurisdiction of the case to assure compliance.
We express our sincerest appreciation to former Chief Justice Bradley Jesson and former Justice David Newbern for the exceedingly thorough analysis they performed in response to this court's charge set out in our per curiam order dated June 9, 2005. The dedication and commitment they have shown to the task at hand are truly exemplary. The court is profoundly grateful for the work they performed.
We begin with a summary of the salient findings of fact and conclusions of law made by the Masters in their report and follow with our opinion in this matter.
The Masters found that basic foundation funding for school districts for the 2005-2006 school year was calculated by using $5,400 for each student multiplied by the average daily membership of the school district for the previous school year.2 This was the same foundation funding for the 2004-2005 school year.
Act 59 of the Second Extraordinary Session of 2003 set forth the funding formula for the 2004-2005 school year. Act 2283 of 2005 did not increase the $5,400 foundation-funding amount for the 2005-2006 school year. Act 2283 did increase the figure for the 2006-2007 school year by $97 for a total of $5,497.
Act 1426 of 2005 requires that each school district dedicate nine percent of its total foundation funding, or $486 of the $5,400 amount, for utilities, custodial costs, maintenance and repair, renovation, and related personnel costs. The act effectively limits the use of the funds so that they cannot be used for other expenses such as increased transportation costs.
Amendment 74 established the uniform rate of taxation of twenty-five mills for each school district to be levied on the assessed value of property and to be used solely for the maintenance and operation of the schools. The revenues collected are sent to the State, and the State later distributes the total funds back to the school district.
The twenty-five mills uniform rate of taxation and the net revenues it generates are elements of the formula used to determine the amount of state foundation aid. The report says: "That amount [foundation aid] is computed as `the difference between the foundation funding amount [which is set at $5,400 per student multiplied by the average daily membership of the school district for the previous school year] . . . and the sum of ninety-eight percent (98%) of the uniform rate of tax multiplied by the property assessment of the school district plus seventy-five percent (75%) of miscellaneous funds of the school district.'" See Ark.Code Ann. § 6-20-2305(a)(1) (Supp.2005).
The 2% difference between 98% and 100% in § 6-20-2305(a)(1) is said to be the cost of collecting the local tax, although, according to testimony before the Masters, that cost can exceed the two percent figure. In addition, the actual collection of local revenues can be lower than 98% of the uniform rate of tax multiplied by the property assessment for the school district.
The uniform rate of taxation is estimated to reflect an increase of $39 million in the 2005-2006 school year from that of the 2004-2005 school year. This potential increase in local revenues results in a corresponding reduction in state foundation aid needed to make up the $5,400 per student.
Categorical funds are available in addition to the foundation funding for programs like the Alternative Learning Environment for "at risk" students, where the State provides funding of $3,250 multiplied by the number of identified ALE students. There was no increase in funding in this category for the 2005-2006 and 2006-2007 school years.
Act 2283 of 2005 provides that for the school years of 2005-2006 and 2006-2007, funding for the English language learners is $195 for each eligible student. This represents no increase from the 2004-2005 school year. The Masters found that children from non-English speaking homes have greater educational needs than those from English-speaking homes. The legislative committees made no inquiry to school superintendents about the funding needs for the English language learners prior to or during the 2005 session.
Insufficient funding for this program requires National School Lunch Act revenues to be used to support this program.
Additional funding under Act 59 of the Second Extraordinary Session of 2003 for students eligible under the National School Lunch Act was based on the number of students eligible. In 2005, the General Assembly amended Act 59 by Act 2283 and, in doing so, changed the method of counting students who qualified for additional funds. This caused a decrease of $9,542,400 in the money spent on behalf of school-lunch students in the 2005-2006 school year. The funding for NSLA students does not account for any increase or decrease in the average daily number of the students for the current year.
Professional development funding supports a coordinated set of planned learning activities for teachers and administrators. This funding was reduced from $50 multiplied by the previous year's average daily membership (ADM) for school year 2004-2005 to a projected $41.11 multiplied by the previous year's ADM for school year 2005-2006. The difference in funding may be due to funding provided to the Arkansas Educational Television Network to develop an online professional-development program for teachers.
No cost-of-living adjustment (COLA) was added to the foundation-funding amount of $5,400 per student for the 2005-2006 school year. A COLA had been recommended by personnel at the Department of Education and at the Department of Finance and Administration of 1.875%, which would have raised the $5,400 figure by $101 at a cost of $45 million. Though foundation funding did not receive a cost-of-living adjustment, all state employees did receive such an increase,...
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