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Litigation Update: Kansas, Arkansas, Nebraska, New York, North Carolina, South Carolina and Maryland

Kansas Supreme Court Schedules Briefing and Oral Argument

Facing an April 12 court-ordered deadline in the Montoy v. State school funding adequacy case, the Kansas legislature revised the state education finance statutes in early April, and now awaits the Kansas Supreme Court’s judgment on the changes. The day after the legislature adjourned, plaintiffs, who consider the changes to be “totally inadequate” according to a report in the Lawrence Journal-World, filed a motion in the Kansas Supreme Court.

The court quickly issued an order that set tight briefing deadlines, scheduled oral argument for May 11 and, also, pointed out that “the burden of proof has shifted to the defendants to show that the Legislature’s action has resulted in a suitable provision for the financing of education.” “Suitable provision” is a key phrase in the Kansas Constitution. After hearing oral argument, the supreme court could decide to: (1) hold hearings or appoint special masters to determine if the changes bring the finance system into constitutional compliance; or (2) rule on that question without further proceedings.

Plaintiffs Win as Nebraska Supreme Court Denies Intervention

In Nebraska’s Douglas County v. Johanns school funding case, the state supreme court affirmed the trial court’s ruling that denied a Motion to Intervene filed by the Lincoln Public Schools (LPS). The supreme court described LPS’s motion and complaint as “chameleon-like” because it “alleges that it has a direct legal interest in defending the constitutionality of the school funding statutes and that if the funding statutes are unconstitutional, it seeks the same relief that OPS [Omaha Public Schools] might receive.”

Plaintiffs had opposed the motion, and their attorneys have indicated that intervention would have led to, inter alia, significant additional costs to all parties and lengthier proceedings. Ultimately, even LPS will likely benefit from the court’s decision.

New York

Immediately after the State of New York filed an appeal of the latest trial court order in the Campaign for Fiscal Equity (CFE) v. State case, plaintiffs were in court to file a Motion to Vacate the Stay. The motion, if granted, will lift the automatic stay that the state receives in such appeals. The trial court order includes a 90-day deadline for the state to remedy its unconstitutional school funding system. Thus, the stay appears to contribute to the state’s ongoing tactic of delay in this case. In the alternative, plaintiffs seek an expedited appeal.

These proceedings follow from the state’s failure to meet the July 2004 deadline set by the state’s highest court, the Court of Appeals, for enacting a remedy in the CFE case. In August 2004, the case returned to the trial court, where Justice Leland DeGrasse appointed a panel of special masters (referees), which held two-months of hearings and issued recommendations that the court adopted in an order finalized in March 2005.

North Carolina

Wake County Superior Court Judge Howard Manning continues to hold hearings in that state’s adequacy suit, Leandro v. State (also known as Hoke County v. State). Judge Manning has asked the parties to address urban schools issues and present arguments about remedies. Meanwhile, the governor and state legislature are proposing funding changes and an “education lottery,” but have not yet finalized any of these proposals or reached agreement on next year’s budget. Judge Manning has not issued any rulings since the North Carolina Supreme Court held unanimously for plaintiffs in July 2004. In that opinion, the supreme court concluded that students in poor, rural counties were failing at alarming rates and that it was necessary to "hold the State accountable" for the many programs and services not provided to these students. The court stated that, "The children of North Carolina are our state's most valuable renewable resource," and emphasized the duty of the state's courts to act to prevent further harm to students.

Arkansas

Feeling that the legislative and executive branches have reneged on their commitment to education, made last year in response to the Lake View v. Huckabee school funding suit, the Lake View intervenor Rogers School District has filed a motion in the Arkansas Supreme Court. The motion asks the court to recall its mandate and issue an Order to Show Cause, accusing the State of civil contempt for failure to comply with the court’s orders in Lake View case. Rogers asserts that the legislature failed to perform the annual assessment of foundation funding and that its budget for the 2005-06 school year under funds education significantly.

Arguably the most contentious education issue in Arkansas currently is the state’s threat to consolidate many rural school districts, which it did last year to the original plaintiff Lake View district.

Opinions Pending in Maryland and South Carolina; Discovery Proceeding Elsewhere

The parties to South Carolina’s school funding adequacy case, Abbeville v. State, anticipate a decision from the trial court in June or July, after concluding the trial in December 2004. Attorneys in Maryland’s adequacy case, Bradford v. Maryland State Board of Education, expect a decision soon from the Maryland Court of Appeals (the state’s highest court) on the appeal of the trial court’s ruling that ordered a small amount of additional funding for the Baltimore City School District to avoid program cuts and teacher layoffs.

Discovery is proceeding in North Dakota, Missouri, Nebraska, Kentucky, and other states with active school funding litigations. Trials are scheduled to begin later this year, in North Dakota’s Williston Public School District v. State, and next year in some cases. In Nebraska, two separate school funding litigations are proceeding. In July, the trial court will hear oral argument on a motion to dismiss in the case filed by rural school districts, Nebraska Coalition for Educational Equity and Adequacy (NCEEA) v. Johanns.

Prepared by Molly A. Hunter, April 20, 2005