Gov. Haslam says Tennessee education funding lawsuit squashes further talks

Gov. Bill Haslam says a lawsuit filed by seven Southeast Tennessee school districts on Tuesday effectively shuts the door on future talks over the state's funding of education.

The Hamilton County Board of Education -- along with school systems in Bradley, McMinn, Marion, Grundy, Coffee and Polk counties -- filed suit Tuesday in Davidson County, claiming the state is not meeting its constitutional obligation to fund public schools. Rather than providing state-funded free public education as required by law, the lawsuit alleges, Tennessee has shifted the financial burden of operating schools to local boards of education, teachers and students, "resulting in substantially unequal education opportunities across the state."

Such lawsuits have become common across the nation, as school districts in 45 states have taken on their state governments in hopes of increasing education funding. And, generally speaking, the suits are successful in forcing states' hands to increase education spending.

The lawsuit, filed by Hamilton County school board attorney Scott Bennett, came a day after the leaders of the state's four largest school systems met with Haslam to talk about their funding issues.

Hamilton County Schools Superintendent Rick Smith said on Monday, he was "pleased" with the governor's interest in fixing the school finance problem. But on Tuesday, he changed his tune. He said he has patiently waited for the state to address the funding deficit.

Still, Smith said the governor's power ultimately is limited. He can't compel the Legislature to increase education funding. The courts can.

Haslam had previously warned that a lawsuit would hamper the possibility of ongoing conversations. And state officials were displeased with the school boards' action Tuesday.

"The governor is very disappointed after he and [Education Commissioner Candice McQueen] made the commitment yesterday to a collaborative process to work closely with districts on these issues, and litigation will obviously decrease potential for collaboration," said the governor's spokesman, David Smith.

McQueen, a defendant in the case, echoed the sentiment.

"Disappointed," she said. "But I can't comment on pending litigation. But disappointed."

State Rep. Mike Carter, R-Ooltewah, said he also was upset by the lawsuit and sees it as an example of school systems mismanaging the money they have.

"If they'd rather spend money on attorneys than spend it on the children, then that gives me a good indication of where I need to go," he said.

But local school officials say they've waited long enough for increased funding.

"Frankly, we're just tired of it," Hamilton County school board member Donna Horn said.

Horn said school systems desperately need money to retain and recruit qualified teachers and to offer programs and technology so Tennessee schools can train children to compete in a 21st century economy.

School officials say Tennessee schools are shortchanged some half a billion dollars under the current Better Education Program funding formula, which hasn't been fully funded since it was adopted in 2007. In Hamilton County, officials estimate they are losing out on $13 million to $15 million annually.

Hamilton County's lawsuit alleges the state is not meeting the state constitution's mandate of providing free public education, saying the General Assembly has been "deliberately indifferent to its constitutional duty." Plus, statewide education reform measures in recent years have dramatically raised the bar for school systems with new curriculum, new tests and tougher standards for teachers. But state funding hasn't kept up with the times.

"The state has imposed new requirements and standards on local boards of education," the lawsuit states, "but has not allocated any funds to defray these costs."

The Hamilton County school board voted 8-1 on March 13 to sue the state over the Basic Education Program, or BEP, the complex formula that allocates dollars to the state's school systems.

"I think it's come to a head, basically ..." Horn said. "We're not playing this game anymore. We've gone too many years of not being funded properly and now it's starting to really wreak havoc."

Some past lawsuits over the BEP have pitted small systems against larger metropolitan school systems. But Smith said this suit is focused on expanding the total amount of money allocated to Tennessee schools.

"This conversation is really about expanding the pie," he said. "It's about adequacy, and it's our contention that we are not adequately funding public education in Tennessee."

School systems have been suing their state governments routinely over education funding since the 1970s, when the U.S. Supreme Court ruled that education is not a right guaranteed under the U.S. Constitution. But the court noted that public education is mentioned in all state constitutions, said Dan Thatcher, a senior policy specialist who tracks the issue at the National Conference of State Legislators.

At any given time, there are a handful of such lawsuits making their way through state courts, Thatcher said. And plaintiffs win more than half of the time, although it can take years before a resolution is reached.

"More often than not, these cases are successful," he said.

Tennessee's academic performance has historically finished near the bottom of the 50 states. And the state funds education well below the rate of other states. According to a 2012 U.S. Census analysis of state spending on education, Tennessee spent less than $10,000 per student, while states like Illinois and Pennsylvania spent up to $14,000 per pupil. New York and New Jersey paid more than $16,000 per pupil. The analysis also pointed out that Tennessee spent less on education when compared against personal income than any other state in the South.

Still, academics debate whether increased spending necessarily amounts to improved academic performance.

Contact staff writer Kevin Hardy at khardy@timesfreepress.com or 423-757-6249.

Contact staff writer Andy Sher at asher@timesfreepress.com or 615-255-0550.