Jim DuPREE et al v. ALMA SCHOOL DISTRICT NO. 30 of Crawford County et al
82-175
Supreme Court of Arkansas
May 31, 1983
651 S.W.2d 90
Seay & Bristow, by: Bill W. Bristow, for appellants Clover Bend School District et al.
Dailey, West, Core, Coffman & Canfield, by: Ben Core; Stephen L. Spitz; and Long & Silverstein, by: David Long, for appellees.
Pryor, Robinson & Barry, by: H. Clay Robinson, for amicus curiae, the Fort Smith School District.
Cearley, Mitchell & Roachell, for amicus curiae, the Arkansas Education Association.
STEELE HAYS, Justice. The issue presented on appeal is the constitutionality of the current statutory method of financing public schools in Arkansas under
The funding for Arkansas schools comes from three sources: state revenues provide 51.6%, local revenues 38.1%, and federal revenues 10.3%. The majority of state aid is distributed under the Minimum Foundation Program (MFP). In 1978-79 MFP constituted 77.1% of all state aid.
The funds remaining after allocation for base aid are distributed under “equalization aid“. Under this section of the act, half of the remaining funds are distributed under a flat grant on a per pupil basis. Districts receive the same amount of aid under this provision irrespective of local property wealth and revenue raised. The remaining funds under the equalization provision are then distributed under a formula directed at equalizing the disparity between the poor and wealthy districts. Of the total allocated under this program in 1979-80, this accounted for only 6.8% of MFP aid.
The other area of contention is the distribution of funds for vocational education. In order for a school district to institute a program of vocational education approved for
Against this backdrop of funding is the undisputed evidence that there are sharp disparities among school districts in the expenditures per pupil and the education opportunities available as reflected by staff, class size, curriculum, remedial services, facilities, materials and equipment. In dollar terms the highest and lowest revenues per pupil in 1978-79 respectively were $2,378 and $873. Disregarding the extremes, the difference at the 95th and 5th percentiles was $1,576 and $937. It is also undisputed that there is a substantial variation in property wealth among districts. The distribution of property wealth, measured as equalized assessed valuation per pupil in average daily attendance (ADA) in 1978-79, ranged from $73,773 to $1,853. These wealth disparities are prevalent among both large and small districts. As the system is currently operating, the major determinative of local revenues is district property wealth and the amount a school district can raise is directly related to its property wealth.
The range in revenues among school districts in Arkansas is not limited to the extremes. There are a substantial number of children affected by the revenue disparities. In 1978-79, only 7% of the pupils resided in school districts with over $1,500 per pupil in state-local revenues, while over 21% resided in districts with less than $1000 in state-local revenues, and 55% of the districts were below the state mean. This great disparity among the districts’ property wealth and the current state funding system as it is now applied does not equalize the educational revenues available to the school districts, but only widens the gap.
The appellants devote little attention to the constitutional provisions in question, but contend that there is no requirement of uniformity of educational opportunities
Most cases finding similar state financing systems unconstitutional have found their state‘s equal protection clause to be applicable and to require equal educational opportunities. See Washakie County School District No. One v. Herschler, 606 P.2d 310 (Wyo. 1980); Pauley v. Kelly, 255 S.E.2d 859 (W. Va. 1979); Serrano v. Priest, 557 P.2d 929 (Cal. 1976); Horton v. Meskill, 376 A.2d 359 (Conn. 1976). In at least one jurisdiction, the court found its constitution demanded an equal education opportunity based solely on an education clause similar to ours. Robinson v. Cahill, 303 A.2d 273 (N.J. 1973).
There is no sound basis for holding the equal protection clause inapplicable to the facts in this case. The constitutional mandate for a general, suitable and efficient education in no way precludes us from applying the equal protection clause to the present financing system, in fact under the interpretations of such cases as Robinson, supra, that clause only reinforces the decision that the equal protection clause applies.
We can find no legitimate state purpose to support the system. It bears no rational relationship to the educational needs of the individual districts, rather it is determined primarily by the tax base of each district. The trial court found the educational opportunity of the children in this state should not be controlled by the forfuitous circumstance of residence, and we concur in that view. Such a system only promotes greater opportunities for the advantaged while diminishing the opportunities for the disadvantaged.
Those jurisdictions finding no equal protection viola-
We come to this conclusion in part because we believe the right to equal educational opportunity is basic to our society. “It is the very essence and foundation of a civilized culture; it is the cohesive element that binds the fabric of our society together.” Horton at 377, Bogdanski, J. conc. Education becomes the essential prerequisite that allows our citizens to be able to appreciate, claim and effectively realize their established rights. The opening phrase to our constitutional mandate for a public school system underscores the truth of the principle.
Intelligence and virtue being the safeguards of liberty and bulwark of a free and good government, the State shall ever maintain a general, suitable and efficient system of free public schools . . . (
Art. 14 § 1 )
The appellants’ arguments are wide of the mark in this case. They concede the disparities that exist among the school districts, but they offer no legitimate state purpose to support it. Rather, their attack comes from an oblique standpoint. They assert that the constitution only requires a suitable, effective education and that the appellees have failed to prove that is not true in their districts. The evidence offered may have shown that the appellee districts offered the bare rudiments of educational opportunities, but we are
Appellants also submit that the reason appellees are lacking in funds is not that they are property poor but that they under assessed. The individual school districts, however, have only limited control over the assessment procedure. The assessment is done on a county wide basis and all school boards in the county are represented on the county equalization boards as a minority. Appellants’ argument is additionally weakened by the evidence presented that all counties are presently under assessed and that there are instances where appellee and appellant districts are in the same county and consequently are subject to the same assessment practices.
Appellants contend that once the appellee districts are properly assessed at the mandated level (per Public Service Commission v. Pulaski County Equalization Board, 266 Ark. 64, 582 S.W.2d 942 [1979]) they will have sufficient revenues to provide a suitable education. However, the trial court found otherwise and the evidence does not convince us to the contrary. Too, it misses the main issue. When all counties are assessed at the proper level, the gap will still exist between the poor and wealthy districts and the mandate of the constitution will remain unfulfilled. The appellants’ amicus brief presents a similar point, arguing that the trial court‘s ruling was premature and a decision should be deferred until reassessment is completed. This argument ignores the trial court‘s findings, which we find convincing, that reassessment will not improve the plight of the property poor districts. The argument also ignores the fact that
Appellants point out that the appellee districts are not voting the same level of millage as the appellant districts. The record shows otherwise, however, and the average millage of the appellee districts is equal to and in some cases higher than that of the appellant districts. Appellants contend that the income level of appellee districts is higher and they would need to raise their millage level considerably to put them at the same “pain threshold” as that of the appellant districts. Appellants also point to Amendment 405 of the constitution which they claim requires all districts to levy taxes for needed funds before the district can request additional aid from the state. The appellees, they claim, have not first met this burden.
Appellants’ claim that the complaining districts are all of higher income levels is unsustained except for general allegations and unsupported by any statistical proof. We
We have discussed the two major problems faced in financing our state‘s educational system. The first is the obvious disparity in property wealth among districts. That wealth is what primarily dictates the amount of revenue each district receives and the quality of education in that district. The second problem is the manner in which the state determines how the state funds are distributed, and as we have said, the current system is not a rational one. The end result is a violation of the mandates of our constitution. Ultimately, the responsibility for maintaining a general, suitable and efficient school system falls upon the state. “Whether the state acts directly or imposes the role upon the local government, the end product must be what the constitution commands. [When a district falls short of the constitutional requirements], whatever the reasons for the violation, the obligation is the state‘s to rectify it. If local government fails, the state government must compel it to act, and if the local government cannot carry the burden, the state must itself meet its continuing obligation.” Robinson, supra, at 295 and cited with approval in Pauley, supra at 873. Serrano in addressing the same problem notes also the limits of judicial interpretation on this issue. The comments are worth repeating:
The dispositive answer to the above arguments is simply that this court is not now engaged in — nor is it about to undertake — the “search for tax equity” which defendants prefigure. As defendants themselves recognize, it is the Legislature which by virtue of institutional competency as well as constitutional function is assigned that difficult and perilous quest. Our task is much more narrowly defined: it is to determine whether
the trial court committed prejudicial legal error in determining whether the state school financing system at issue before it was violative of our state constitutional provisions guaranteeing equal protection of the laws insofar as it denies equal educational opportunity to the public school students of this state. If we determine that no such error occurred, we must affirm the trial court‘s judgment, leaving the matter of achieving a constitutional system to the body equipped and designed to perform that function. Serrano at 946.
The trial judge was assigned specially to this case. He heard thirty-nine witnesses and reviewed 287 exhibits resulting in over 7400 pages of transcript. His conclusions of fact and law were extensive and detailed, and obvious time and study went into the final decision. We will not overturn the decision below unless we find it clearly erroneous. (
Appellees’ motion to tax costs against appellants pursuant to Rule 9 (e) is denied. We concede the abstract is abbreviated, to say the least, but this is an exceptional case, involving issues and concepts of the broadest possible scope, and we are satisfied appellants have made a good faith effort to give an adequate, if concise, abridgement of the record.
ADKISSON, C.J., dissents.
HICKMAN and PURTLE, JJ., concur.
DUDLEY, J., concurs to the extent that the majority opinion finds a violation of
DARRELL HICKMAN, Justice, concurring. I wholeheartedly agree with the majority. I concur only to add some thoughts that ought to be expressed. This is a case which we could have easily decided the other way with good legal justification. But there are equally good legal reasons for our
A disparity exists in the dispensation of state funds to local school districts that cannot be justified by any solid constitutional principle. Equality is always the rule in constitutiona law, not the exception, and it is a principle repeatedly contained in our Constitution, specifically in the equal protection clause,
Equality is, of course, mostly an ideal or goal, and hardly ever a reality in government. Reasons are always given for not requiring equality but they are usually no more than excuses, and I do not hesitate to point out that if the Arkansas legislature approaches its new task with anything less than the goal of equality in dispensing state funds, it risks repeating the same mistakes that brought about this situation. To be specific, I cannot justify, on this record, any formula of distribution except on a per pupil basis. If there are not enough funds, using such a formula, to insure each student a decent educational opportunity, then the answer lies elsewhere and not in the unequal distribution of funds.
The large and small districts alike argue that it takes more money to provide an education because of their size. I am very doubtful that is the case for larger districts, and the small districts may find the answer to their problem lies in consolidation or merger. Small districts may have to concede
There is no doubt in my judgment that the formula must take into consideration the value of local property available for taxes. I think the majority has said this, but it needs to be made plain, that the disparity that exists, exists partly because of the difference in local taxes that are available. To be specific, a school district that is fortunate enough to have a nuclear energy plant in its district has more tax dollars available than a rural school district that has no taxable local industry. But the children of each district should have the same educational opportunity. That means the wealthier district cannot receive the same state aid the poor district does. A proper formula will consider this disparity. While the state-wide assessment we ordered in Arkansas Public Service Commission v. Pulaski County Board of Equalization, 266 Ark. 64, 582 S.W.2d 942 (1979), will not cure all the inequities that exist, it will certainly provide a basis for addressing the problem. Furthermore, those counties that refuse in the future to properly and lawfully assess their taxable property should be legally accountable to the school districts located in counties that do conscientiously assess property, because it is common knowledge some counties simply refuse or neglect to properly assess property.
We have only the question of the state money before us, but the problem has many facets and the peripheral and collateral questions are staggering. They cannot be ignored by us or the legislature in addressing the question. Local school districts cannot assume their borders will or should remain static forever. Consolidation or merger, or even reducing the size of a district should not be unthinkable.
It is my respectful judgment that this court had no intention of intervening in a legislative or executive matter. Nor do we intend to supervise their work and if the General Assembly takes this opportunity to correct years of habit and starts afresh providing a truly equal formula for dispensing state aid, then there will be no need for this court to speak on this matter again. We are not a wealthy state but we have the means to provide to every student, both at the secondary and higher level, a decent opportunity for an education. But our assets cannot be squandered by political decisions or unnecessary compromise.
JOHN I. PURTLE, Justice, concurring. I concur with the majority with the exception that I insist that the right to a free public education is fundamental.
It further seems to me we ought to suggest some type of alternate plan to the one which has been struck down. One simple solution would be to require each district to levy and collect a certain millage on all property assessed at 20% of market value. The state would then distribute its money on a per capita basis, taking into consideration certain weighted allowances for special situations such as a handicapped program, to be applied to all districts alike.
RICHARD B. ADKISSON, Chief Justice, dissenting. The majority point to the fact that there is a great disparity in property wealth among the districts as being part of the problem with our school financing, but it is undisputed that
Moreover, it is worth noting that of the thirteen courts that have reviewed state school financing systems similar to ours, only four have found such systems to be unconstitutional. Washakie Co. School Dist. No. One v. Herschler, 606 P.2d 310 (Wyo. 1980); Serrano v. Priest, 135 Cal. Rptr. 345, 557 P.2d 929 (1977); Horton v. Meskill, 172 Conn. 615, 376 A.2d 359 (1977); Milliken v. Green, 389 Mich. 1, 203 N.W.2d 457 (1972). The weight of authority clearly points toward upholding our system. San Antonio Independent Sch. Dist. v. Rodriguez, 411 U.S. 1 (1973), reh‘g denied, 411 U.S. 959 (1973); Lujan v. Colorado State Bd. of Educ., 649 P.2d 1005 (Colo. 1982); Bd. of Educ. of City Sch. Dist., etc. v. Walter, 58 Ohio St.2d 368, 390 N.E.2d 813 (1979); McDaniel v. Thomas, 248 Ga. 632, 285 S.E.2d 156 (1981); Olsen v. State, 276 Or. 9, 554 P.2d 139 (1976); Thompson v. Engelking, 96 Idaho 793, 537 P.2d 635 (1975); Northshore Sch. Dist. No. 417 v. Kinnear, 84 Wash.2d 685, 530 P.2d 178 (1974); Shofstall v. Hollins, 110 Ariz. 88, 515 P.2d 590 (1973).
Notes
§ 2. Freedom and independence. — All men are created equally free and independent, and have certain inherent and inalienable rights, amongst which are those of enjoying and defending life and liberty; of acquiring, possessing and protecting property and reputation, and of pursuing their own happiness. To secure these rights the governments are instituted among men, deriving their just powers from the consent of the governed.
§ 18. Privileges and immunities — Equality. — The General Assembly shall not grant to any citizen or class of citizens privileges or immunities which upon the same terms shall not equally belong to all citizens.
The Board of Directors of each school district shall prepare, approve and make public not less than sixty (60) days in advance of the annual school election a proposed budget of expenditures deemed necessary to provide for the foregoing purposes, together with a rate of tax levy sufficient to provide the funds therefor, including the rate under any continuing levy for the retirement of indebtedness. If a majority of the qualified voters in said school district voting in the annual school election shall approve the rate of tax so proposed by the Board of Directors, then the tax at the rate so approved shall be collected as provided by law. In the event a majority of said qualified electors voting in said annual school election shall disapprove the proposed rate of tax, then the tax shall be collected at the rate approved in the last preceding annual school election.
Provided, that no such tax shall be appropriated for any other purpose nor to any other district than that for which it is levied.