Plaintiff Victory in Montana; Funding System Must Be Based on Educationally Relevant Factors

On April 15, 2004, a Montana District Court declared the state's school funding system unconstitutional because it violates three provisions of the Montana Constitution. The court held that:

the current funding system fails to provide adequate funding for Montana's public schools;
the State has shown "no commitment in its educational goals to preservation of American Indian cultural identity;" and
the State does not pay its "share of the cost of the basic elementary and secondary school system."

The Remedy

Judge Jeffrey M. Sherlock ordered the State to determine "the needs and costs of the public school system" and to design a finance system "based upon educationally-relevant factors," including the cost of meeting Montana's accreditation standards and other costs such as transportation and facilities.

The court did not prescribe a specific finance system, but suggested that the system provide for periodic review and for inflation, as plaintiffs had requested. The effect of this decision has been stayed until October 1, 2005, in order to give the Legislature "ample time to address the very complicated and difficult issues involved in this case" and pending an expected appeal to the Montana Supreme Court. The court retained jurisdiction over the case, "to avoid unnecessary, costly delays and complications…"

Reactions

Jack Copps, executive director of the Montana Quality Education Coalition, which organized the Columbia Falls v. State lawsuit, was quoted in Helena's Independent Record as saying, "This is a great day for Montana. The courts have said the state must keep its promise to children." State Solicitor Brian Morris said he is disappointed by Sherlock's ruling. ''We didn't feel the plaintiff submitted sufficient proof at trial to prove a violation of the state constitution."

The State is expected to appeal, and Jim Molloy, plaintiffs' lead attorney, hopes the Montana Supreme Court will "render a decision before the 2005 legislative session convenes in January."

State Defenses

The district court rejected the State's defense that its spending was adequate due to limited fiscal capacity. The court held that "statewide fiscal difficulties cannot justify an unconstitutional funding system." The court also rejected the State's contention that the funding system is constitutional because Montana's students perform well on national standardized tests, noting that standardized tests are an incomplete measure of an adequate funding system.

Regarding plaintiffs' claim that the State has not implemented the section of the constitution that requires preservation of American Indian culture, the court ruled that the State was "defenseless." The Montana Indian Education Association had filed an amicus brief with the court on this issue.

Helena Elementary v. State

In 1989, the Montana Supreme Court invalidated the state's then-current school funding system in Helena Elementary School District v. State. In response, the State adopted the funding system now in dispute in 1993, with no provision for inflation.

Prepared April 21, 2004