CHARLES ARAUJO, CASSANDRA OVERTON - WELCHLIN, ARTHUR BROWN, EVELYN GARNER ARAUJO AND LUTAYA STEWART v. GOVERNOR PHIL BRYANT, JPS, MS DEPARTMENT OF EDUCATION, GLADYS OVERTON, ANDREW OVERTON, SR., ELLA MAE JAMES, TIFFANY MINOR, THE MISSISSIPPI CHARTER SCHOOLS ASSOCIATION, MIDTOWN PARTNERS, INC. AND MIDTOWN PUBLIC CHARTER SCHOOL
NO. 2018-CA-00235-SCT
IN THE SUPREME COURT OF MISSISSIPPI
09/05/2019
DATE OF JUDGMENT: 02/13/2018; TRIAL JUDGE: HON. J. DEWAYNE THOMAS; TRIAL COURT ATTORNEYS: WILLIAM B. BARDWELL, LYDIA WRIGHT, JODY E. OWENS, II, KRISSY C. NOBILE, KASHONDA DAY, JOANNE N. SHEPHERD, CYDNEY ARCHIE, MICHAEL J. BENTLEY, MOLLY M. WALKER, R. GREGG MAYER, JAMES W. SHELSON, D. MICHAEL HURST, JR.; COURT FROM WHICH APPEALED: HINDS COUNTY CHANCERY COURT; ATTORNEYS FOR APPELLANTS: WILLIAM B. BARDWELL, JODY E. OWENS, II, CHRISTINE BISCHOFF; ATTORNEYS FOR APPELLEES: OFFICE OF THE ATTORNEY GENERAL BY: KRISSY C. NOBILE, JAMES W. SHELSON, MICHAEL J. BENTLEY, MOLLY M. WALKER, MICHAEL B. WALLACE, AARON R. RICE, JOANNE N. SHEPHERD; NATURE OF THE CASE: CIVIL - STATE BOARDS AND AGENCIES; DISPOSITION: AFFIRMED - 09/05/2019
EN BANC.
CHAMBERLIN, JUSTICE, FOR THE COURT:
¶1. Under the Mississippi Charter Schools Act of 2013 (the Act), a charter school receives funds from two sources: (1)
¶2. After review, we affirm the judgment of the chancery court. We agree that the Plaintiffs do have standing to sue. We also agree with the chancery court that the Plaintiffs did not meet their burden to demonstrate that
FACTS AND PROCEDURAL HISTORY
¶3. On July 11, 2016, Charles Araujo, Evelyn S. Garner Araujo, Casandra Overton Welchin, John Sewell, Kimberly Sewell, Lutaya Stewart and Arthur Brown (collectively, the Plaintiffs), on their own behalf as taxpayers and as next friends of their minor children, sued Governor Phil Bryant, the Mississippi Department of Education (MDE) and JPS in the Chancery Court of Hinds County. The Plaintiffs were ad valorem taxpayers in Jackson with minor children who attend school in JPS. The ad valorem taxes at issue that were paid by the Plaintiffs were designated as “Separate School District” taxes.
¶4. In their first amended complaint, the Plaintiffs maintained that the Act‘s funding scheme for charter schools was unconstitutional. Specifically, they challenged
a charter school located in the school district in which the student resides, the school district in which a charter school is located shall pay directly to the charter school an amount for each student enrolled in the charter school equal to the ad valorem tax receipts and in-lieu payments received per pupil for the support of the local school district in which the student resides.
There shall be a state common-school fund, to be taken from the General Fund in the State Treasury, which shall be used for the maintenance and support of the common schools. Any county or separate school district may levy an additional tax, as prescribed by general law, to maintain its schools. The state common-school
fund shall be distributed among the several counties and separate school districts in proportion to the number of educable children in each, to be determined by data collected through the office of the State Superintendent of Education in the manner to be prescribed by law.
¶5. As the case progressed in chancery court, Gladys Overton, Andrew Overton, Sr., Ella Mae James and Tiffany Minor—parents of children enrolled in charter schools—intervened as Defendants. The Mississippi Charter Schools Association, Midtown Partners, Inc., and Midtown Public Charter School intervened as Defendants as well. Also, JPS filed a motion to dismiss arguing that it was not a necessary party to the suit. The chancery court denied JPS‘s motion.
¶6. Throughout the litigation, all parties filed motions for summary judgment. The Plaintiffs filed a superseding motion for summary judgment. Governor Bryant and MDE filed a combined motion. Also, all the Intervenor-Defendants filed motions for summary judgment. In their summary-judgment motion, Midtown Partners, Inc., and Midtown Public Charter School (collectively, Midtown) raised the issue of the Plaintiffs’ standing to challenge the constitutionality of the statute. In the alternative, Midtown argued that
¶7. On February 13, 2018, the chancery court entered an order denying the Plaintiffs’ superseding motion for summary judgment. The order also granted Governor Bryant and MDE‘s combined motion for summary judgment and the Intervenor-defendants’ motions for summary judgment. That same day, the Plaintiffs filed their notice of appeal in this Court.
STANDARD OF REVIEW
Standing
¶8. The standard of review for issues of standing is de novo. Davis v. City of Jackson, 240 So. 3d 381, 383 (Miss. 2018). “The existence of subject-matter jurisdiction . . . turns on the well pleaded allegations of the complaint which are taken as true.” SASS Muni-V, LLC v. DeSoto Cty., 170 So. 3d 441, 445 (Miss. 2015) (internal quotation marks omitted) (quoting Am. Fid. Fire Ins. Co. v. Athens Stove Works, Inc., 481 So. 2d 292, 296 (Miss. 1985)).
Constitutional Challenge
¶9. “[U]nder Mississippi law a party challenging the constitutionality of a statute must prove unconstitutionality beyond a reasonable doubt.” Cities of Oxford, Carthage, Louisville, Starkville & Tupelo v. Ne. Miss. Elec. Power Ass‘n, 704 So. 2d 59, 65 (Miss. 1997) (citing Sec‘y of State v. Wiesenberg, 633 So. 2d 983, 989 (Miss. 1994)). Thus,
one who assails a legislative enactment must overcome the strong presumption of validity and such assailant must prove his conclusions affirmatively, and clearly establish it beyond a reasonable doubt. All doubts must be resolved in favor of validity of a statute. If possible, a court should construe statutes so as to render them constitutional rather than unconstitutional if the statute under attack does not clearly and apparently conflict with organic law after first resolving all doubts in favor of validity.
State v. Bd. of Levee Comm‘rs for Yazoo-Miss. Delta, 932 So. 2d 12, 19–20 (Miss. 2006) (quoting Ne. Miss. Elec. Power Ass‘n, 704 So. 2d at 65).
ANALYSIS
I. Standing
¶10. In their initial brief, the Plaintiffs urge us to find that the issue of
¶12. Further, it is well established that standing is a jurisdictional issue that may be raised by the parties or the Court at any time. City of Madison v. Bryan, 763 So. 2d 162, 166 (Miss. 2000); Davis, 240 So. 3d at 383. Thus, Midtown did not waive its standing challenge.
¶13. Turning to the merits of Midtown‘s claim that standing has been waived, we recently reviewed Mississippi‘s law on standing:
It is well settled that Mississippi‘s standing requirements are quite liberal. This Court has explained that while federal courts adhere to a stringent definition of standing, limited by
Art. 3, § 2 of the United States Constitution to a review of actual cases and controversies, the Mississippi Constitution contains no such restrictive language. Therefore, this Court has been more permissive in granting standing to parties who seek review of governmental actions. In Mississippi, parties have standing to sue when they assert a colorable interest in the subject matter of the litigation or experience an adverse effect from the conduct of the defendant, or as otherwise provided by law.
Davis, 240 So. 3d at 384 (quoting Burgess v. City of Gulfport, 814 So. 2d 149, 152–53 (Miss. 2002)).
¶14. “An interest is deemed colorable if it ‘appear[s] to be true, valid, or right.‘” SASS Muni-V, 170 So. 3d at 446 (alteration in original) (quoting Schmidt v. Catholic Diocese of Biloxi, 18 So. 3d 814, 827 n.13 (Miss. 2009)). “[A]n individual‘s legal interest or entitlement to assert a claim against a defendant must be grounded in some legal right recognized by law, whether by statute or by common law.” Id. (alteration in original) (internal quotation marks omitted) (quoting City of Picayune v. S. Reg‘l Corp., 916 So. 2d 510, 525 (Miss. 2005)). “[F]or a plaintiff to establish standing on grounds of experiencing an adverse effect from the conduct of the defendant/appellee, the adverse effect experienced must be different from the adverse effect experienced by the general public.” Id. (alteration in original) (internal quotation marks omitted) (quoting Hall v. City of Ridgeland, 37 So. 3d 25, 33–34 (Miss. 2010)).
¶15. After our review, we agree with the chancery court that the Plaintiffs have standing to sue. The Plaintiffs challenge the alleged unconstitutional spending of their ad valorem property taxes by governmental entities. “[T]his Court has been ‘more permissive in granting standing to parties who seek review of governmental actions‘” than federal courts. State v. Quitman Cty., 807 So. 2d 401, 405 (Miss. 2001) (quoting Van Slyke v. Bd. of Trs. of State Insts. of Higher Learning, 613 So. 2d 872, 875 (Miss. 1993) (Van Slyke II)). The Plaintiffs own property in the school district, pay property taxes (a portion of which are designated to support JPS) and have children who attend JPS. The Plaintiffs have also brought suit on behalf of their children as next friends of their children. Thus, the Plaintiffs are not simply general taxpayers challenging general governmental spending as unconstitutional. Instead, the Plaintiffs are ad valorem taxpayers alleging that governmental entities are spending ad valorem tax revenue in direct violation of
¶16. Further, “[c]onstitutional litigation by private citizens may be maintained in cases where there is no probability of the statute being challenged by one of the class discriminated against.” Van Slyke II, 613 So. 2d at 875 (quoting Bd. of Trs. of State Insts. of Higher Learning v. Van Slyke, 510 So. 2d 490, 497 (Miss. 1987) (Van Slyke I) (Prather, J., dissenting)). Here, JPS, a party that would unquestionably have standing to challenge
¶17. The Plaintiffs claim to have suffered an adverse effect from
II. Constitutional Challenge
¶18. Turning now to the constitutional challenge, the Plaintiffs maintain that the funding provisions of
¶19. We “may strike down an act of the legislature ‘only where it appears beyond all reasonable doubt’ that the statute violates the clear language of the constitution.” PHE, Inc. v. State, 877 So. 2d 1244, 1247 (Miss. 2004) (quoting James v. State, 731 So. 2d 1135, 1136
(Miss. 1999)); Clark v. Bryant, 253 So. 3d 297, 301 (Miss. 2018). “In other words, ‘to state that there is doubt regarding the constitutionality of an act is to essentially declare
¶20.
(2) For students attending a charter school located in the school district in which the student resides, the school district in which a charter school is located shall pay directly to the charter school an amount for each student enrolled in the charter school equal to the ad valorem tax receipts and in-lieu payments received per pupil for the support of the local school district in which the student resides. . . . The amount must be paid by the school district to the charter school before January 16 of the current fiscal year. If the local school district does not pay the required amount to the charter school before January 16, the State Department of Education shall reduce the local school district‘s January transfer of Mississippi Adequate Education Program funds by the amount owed to the charter school and shall redirect that amount to the charter school.
¶21. At the outset of our analysis, we note our disagreement with the dissent‘s narrow interpretation of the phrase “its schools” in
¶22. Within the context of the broad grant of authority given to the Legislature under
¶23. Turning to the constitutional challenge to
¶24. The Act provides that all charter schools in the state “are public schools and are part of the state‘s public education system.”
¶25. The Act establishes a state agency: the Mississippi Charter School Authorizer Board.
¶26. Charter schools are required to be open to “[a]ny student residing in the geographical boundaries of the school district in which the charter school is located” and to any student who resides in a school district that was rated “C,” “D” or “F” at the time the charter school was authorized or at the time the student enrolls in the charter school.
¶27. Last, the Act details that a charter school “must function as a local educational agency.”
[t]he rules, regulations, policies and procedures established by the school board for the noncharter public schools that are in the school district in which the charter school is geographically located do not apply to the charter school unless otherwise required under the charter contract or any contract entered into between the charter school governing board and the local school board.
¶28. In light of the Act‘s provisions, it is evident that the Plaintiffs did not prove that
¶29. The Act indicates that a charter school is not a separate school district. The Authorizer Board authorizes charter schools within preexisting school districts.
¶30. The Plaintiffs argue that a school district‘s lack of supervisory control over a charter school under the Act is an indication of the Legislature‘s intent to establish charter schools as separate school districts. While it is true that a charter school is exempted from the oversight of a school district, this does not mean that a charter school is a separate, geographic school district. See
¶31. The Plaintiffs’ position that the Act establishes a charter school as a separate district is difficult to accept, since the Act does not define the new the geographic boundaries of the “district.” The Act did not define any new boundaries for a charter school‘s new “district.” It did not even state that the boundaries of the preexisting school district were the boundaries of a charter school‘s new “district.” This analysis becomes more complicated when considering multiple charter schools governed by one charter or conversion charter schools (noncharter public schools that convert to charter schools). See
¶32. Another indication that the Legislature did not intend for a charter school to be its own school district is that the Act did not authorize the charter school to communicate with the levying authority or otherwise to levy its own taxes for its support. Cf.
¶33. The Plaintiffs rely on Pascagoula School District v. Tucker, 91 So. 3d 598 (Miss. 2012), but Tucker is distinguishable. In Tucker, the Legislature mandated that the revenue that the Pascagoula School District (PSD) collected from ad valorem taxes levied on liquified natural-gas terminals and crude-oil refineries be distributed to all of the school districts in Jackson County in which the terminals and refineries were located. Tucker, 91 So. 3d at 600. Jackson County had four school districts. Id. Thus, the PSD received its tax money from the City of Pascagoula but was required by the Legislature to disburse a portion of it to the other three school districts in Jackson County. Id. In its analysis, the Tucker Court held,
The plain language of [Article 8,] Section 206[, of the Mississippi Constitution] grants the PSD the authority to levy an ad valorem tax and mandates that the revenue collected be used to maintain only its schools. Conversely, no such authority is given for the PSD to levy an ad valorem tax to maintain schools outside its district.
¶34. This appeal, though, is distinguishable from Tucker. Once JPS received its ad valorem taxes, the taxes did not leave the district but instead were used to maintain “its schools.” Here, JPS set its budget and requested an amount of tax money from the levying authority.
¶35. In other words, the ad valorem assessment went to JPS, remained in the school district and maintained the district‘s schools. Further, the charter schools are public schools supported by their school district. As discussed above, they are public schools within the school district (not constituting a separate school district) and are intrinsically connected to the district.
¶36. We agree with the dissent that this case does not involve a policy debate concerning charter schools in Mississippi, but, with respect, the sole issue before the Court is whether the Plaintiffs demonstrated “‘beyond all reasonable doubt‘” that
III. Denial of the Motion to Dismiss
¶37. JPS argues that the chancery court erred by denying its motion to dismiss. The Plaintiffs argue that JPS waived this issue when it failed to file a notice of cross-appeal. We agree.
¶38. JPS waived its right to a direct appeal by not filing a notice of cross-appeal.
CONCLUSION
¶39. While the Plaintiffs have standing to challenge
¶40. AFFIRMED.
COLEMAN, JUSTICE, CONCURRING IN PART AND IN RESULT:
¶41. An amendment to
¶42.
There shall be a common school fund, which shall consist of poll tax (to be retained in the counties where the same is collected) and an additional sum from the general fund in the state treasury which together shall be sufficient to maintain the common schools for the term of four months in each scholastic year. But any county or separate school district may levy an additional tax to maintain its schools for a longer time than the term of four months. The common school fund shall be distributed among the several counties and separate school districts in proportion to the number of educable children in each, to be determined from data collected through the office of the state superintendent of education, in the manner to be prescribed by law.
Jackson v. Hinds Cty., 104 Miss. 199, 203-04, 61 So. 175, 175 (1913) (quoting
follows:
There shall be county common school fund, which shall consist of the poll tax, to be retained in the counties where the same is collected, and a state common school fund, to be taken from the general fund in the state treasury, which together shall be sufficient to maintain the common schools for the term of four months in each scholastic year. But any county or separate school district may levy an additional tax to maintain its schools for a longer time than the term of four months. The state common school fund shall be distributed among the several counties and separate school districts in proportion to the number of educable children in each, to be determined from data collected through the office of the state superintendent of education in the manner to be prescribed by law.
Jackson, 61 So. at 175 (quoting
¶43. In 1922, the Court revisited Article 8, Section 206, in Miller v. State, 130 Miss. 564, 94 So. 706 (1922). In Miller, the court referenced a 1919 amendment of Article 8, Section 206, which provided, “But the Legislature shall have power to make an additional appropriation to be disbursed by the State Board of Education in such manner as to equalize public school terms throughout the state.” Miller, 94 So. at 707 (quoting
¶44. A year after Miller, the Court again addressed Article 8, Section 206, in St. Louis & San Francisco Railway Co. v. Benton County, 132 Miss. 325, 96 So. 689 (1923). There, the plaintiff sought a refund of school tax assessed against it by the Benton County Board of Supervisors. Id. At issue was the constitutionality of a statute that allowed boards of supervisors to levy taxes for public schools on property in the county, to levy additional poll taxes, and to take other measures to fund schools. Id. While the text of Article 8, Section 206, has been amended to such an extent that the Benton County Court’s exposition of it does not help in applying today’s version of the section to today’s case, the Benton County Court did rely on a principle of state law that remains in force today. The Mississippi Legislature has “all power not taken from it by the Constitution in express terms or by necessary implication.” Id. at 690 (citing Miller v. State, 130 Miss. 564, 94 So. 706 (1923)).
¶45. Following the cases discussed above, there was no significant alteration to the language in Article 8, Section 206, until 1989. Then, the amendment to Article 8, Section 206, was proposed by Mississippi House Concurrent Resolution 9 (1989 Miss. Laws ch. 589) and, upon ratification by the electorate on June 20, 1989, was inserted as part of the Constitution by proclamation of the Secretary of State on August 1, 1989. In doing so, the single fund was reinstated, and the references to poll taxes were eliminated. Article 8, Section 206, in its current form reads as follows:
There shall be a state common-school fund, to be taken from the General Fund in the State Treasury, which shall be used for the maintenance and support of the common schools. Any county or separate school district may levy an additional tax, as prescribed by general law, to maintain its schools. The state common-school fund shall be distributed among the several counties and separate school districts in proportion to the number of educable children in each, to be determined from data collected through the office of the State Superintendent of Education in the manner to be prescribed by law.
¶46. New to Article 8, Section 206, as a result of the latest amendment is the requirement that any county or separate school district that levies an additional tax must do so “as prescribed by general law.”
¶47. Just as the Court found no constitutional prohibition against the Legislature’s enactment of a statute in Benton County, 96 So. at 690, I can discern no constitutional limit on the Legislature’s passing
¶48. “A state Legislature’s power to make laws is absolute unless restricted by constitutional limitations.” Martin v. First Nat’l Bank, 176 Miss. 338, 164 So. 896, 901 (1936). It is the broad authority of the State Legislature to make laws absent constitutional limitation that gives rise to the Legislature’s authority to pass
¶49. Because I fully concur in the majority’s treatment of the standing issue and the motion to dismiss, I, with respect, concur in part and in result.
KING, PRESIDING JUSTICE, DISSENTING:
¶50. Because the majority’s interpretation of Mississippi Constitution Article 8, Section 206, belies its plain language, clear grammar rules, and common sense, and because the funding mechanism for charter schools mandated by
1. Plain Language of Article 8, Section 206
¶52. “Any county or separate school district may levy an additional tax, as prescribed by general law, to maintain its schools.”6
“[t]he case of nouns that indicates ownership or possession[.]” Strunk & White, supra, at 93. “Possess” means “[t]o have in one’s actual control; to have possession of.” Possess, Black’s Law Dictionary (11th ed. 2019). It is also defined as “to have as property; own.” Possess, American Heritage College Dictionary (3rd ed. 1997). Thus, basic grammatical rules lead to the necessary conclusion that “its schools” in Article 8, Section 206, refers to schools that the county or school district possesses, controls, and/or owns.7
¶54. A school district clearly does not possess, control, or own charter schools. Charter schools are unaccountable to the district in which they are geographically located, and the Charter School Act directly contradicts any notion that a charter school is included in a district’s schools. The Charter School Act defines a “school district” as “a governmental entity that establishes and supervises one or more public schools within its geographical limits pursuant to state statutes.”
Although a charter school is geographically located within the boundaries of a particular school district and enrolls students who reside within the school district, the charter school may not be considered a school within that district under the purview of the school district’s
school board. The rules, regulations, policies and procedures established by the school board for the noncharter public schools that are in the school district in which the charter school is geographically located do not apply to the charter school unless otherwise required under the charter contract or any contract entered into between the charter school governing board and the local school board.
¶55. The phrase “its schools” in Article 8, Section 206, clearly mandates that ad valorem tax revenue be used only for schools that the school district controls. It is abundantly clear that the school district has no control whatsoever over charter schools; as such, charter schools cannot fall within the purview of “its schools.” The Legislature’s command in
2. Other Concerns
¶56. While the plain language of Article 8, Section 206, is abundantly clear, it is also noteworthy that statutory language used throughout Title 37 of the Mississippi Code indicates an understanding that “its schools” refers to schools that the district controls. For example, “[t]he school boards of all school districts shall have the following powers, authority and duties . . . : (a) To organize and operate the schools of the district . . .”
¶57. Moreover, defying the plain language of Article 8, Section 206, and tying the phrase “its schools” to simple geography creates a problematic slippery slope leading to local districts being forced to support other special schools that service students within its district. For example, the Columbus School District could be ordered to pay its ad valorem tax receipts to the Mississippi School for Math and Science for every student who attends MSMS and also resides within the Columbus School District. Tying a possessive pronoun to simple geography, rather than actual possession, simply makes no sense, grammatically or legally.
KITCHENS, P.J., JOINS THIS OPINION.
