Questions surround coalition financing school funding lawsuit
Posted: Friday, May 11, 2007
PIERRE, S.D. (AP) -- Dozens of school districts and the South Dakota Coalition of Schools should be audited to determine whether they are illegally funding a lawsuit that challenges the state's school financing system, Attorney General Larry Long said Thursday.
Long said he has asked Auditor General Martin Guindon to conduct audits of the coalition and the approximately 70 school districts that have provided money to support the lawsuit, which alleges that the state is falling far short of providing adequate funding for schools.
In prior cases, the South Dakota Supreme Court has ruled that a school district has no legal standing to challenge the constitutionality of a law, Long said. The state's highest court also has ruled that school districts cannot pay the legal fees of some other organization or person, he said.
Long said he believes it is improper and illegal for the school districts to finance the lawsuit that argues the current state funding system for school districts is unconstitutional.
The attorney general said he is responsible for taking action if he believes public money is being spent illegally. He said it is improper for taxpayers in school districts to fund a lawsuit against the state, which must use taxpayers' money to defend against the lawsuit.
"The people paying the bill -- win, lose or draw -- are the taxpayers. It seems kind of odd, doesn't it?" Long said.
But Scott Abdallah, a Sioux Falls lawyer representing parents who are pursuing the lawsuit on behalf of their children, said the state is seeking to derail the lawsuit by blocking funding for the legal challenge. That's because state officials are afraid to have the court system determine whether schools are being funded adequately, he said.
"If you're concerned about your chances on the battlefield against your opponent, then I suppose it's a tactic to try and cut off their supplies and starve them into submission," Abdallah said.
The lawsuit is based on a study done for school districts that found annual funding for K-12 education is falling short of needs by $134 million to $406 million. The lawsuit argues that the funding system violates the South Dakota Constitution because the state provides inadequate funding.
After a hearing last month, Circuit Judge Lori Wilbur of Pierre ruled that she would consider whether the state education funding system violates the constitution, but she said courts have no authority to order the Legislature to spend more money on education. A trial is tentatively set for next year.
The state had argued before the hearing that the South Dakota Coalition of Schools should be dismissed as a plaintiff because it represents school districts that have no authority to sue the state, challenge the constitutionality of state law or make a claim against the state treasury.
At the hearing, the coalition agreed to be removed as a named plaintiff. That leaves only the parents as plaintiffs.
Abdallah said state law clearly allows school districts to pay money to belong to a coalition. Once the money is contributed to the Coalition of Schools, the districts have no control over how the money is spent or how the lawsuit is conducted, he said.
The funding arrangement for the lawsuit is legal because no school district is suing the state or controlling the lawsuit, Abdallah said.
Abdallah has asked the auditor general to deny Long's request for audits.
"I think people will see this for what it is, which is a desperate attempt to intimidate school districts and the citizens within those districts," Abdallah said.
Abdallah said the coalition agreed to be removed as a named plaintiff because it does not matter whether its name is on the lawsuit. The parents and children are sufficient plaintiffs to challenge the school funding system, he said.
Long said he had to seek the audits because the coalition avoided the lawsuit-funding issue during last month's court hearing.
If audits find that school districts have improperly spent money by supporting a lawsuit, each district's lawyer would have 60 days to make sure the money is paid back to the district, the attorney general said.
"That doesn't mean the lawsuit would go away," because other sources might be found to pay the expenses of the legal challenge, Long said.
Abdallah said Long has a conflict of interest in raising the allegation of illegal funding of the lawsuit because he is representing the state in the case.
Long said he has asked Auditor General Martin Guindon to conduct audits of the coalition and the approximately 70 school districts that have provided money to support the lawsuit, which alleges that the state is falling far short of providing adequate funding for schools.
In prior cases, the South Dakota Supreme Court has ruled that a school district has no legal standing to challenge the constitutionality of a law, Long said. The state's highest court also has ruled that school districts cannot pay the legal fees of some other organization or person, he said.
Long said he believes it is improper and illegal for the school districts to finance the lawsuit that argues the current state funding system for school districts is unconstitutional.
The attorney general said he is responsible for taking action if he believes public money is being spent illegally. He said it is improper for taxpayers in school districts to fund a lawsuit against the state, which must use taxpayers' money to defend against the lawsuit.
"The people paying the bill -- win, lose or draw -- are the taxpayers. It seems kind of odd, doesn't it?" Long said.
But Scott Abdallah, a Sioux Falls lawyer representing parents who are pursuing the lawsuit on behalf of their children, said the state is seeking to derail the lawsuit by blocking funding for the legal challenge. That's because state officials are afraid to have the court system determine whether schools are being funded adequately, he said.
"If you're concerned about your chances on the battlefield against your opponent, then I suppose it's a tactic to try and cut off their supplies and starve them into submission," Abdallah said.
The lawsuit is based on a study done for school districts that found annual funding for K-12 education is falling short of needs by $134 million to $406 million. The lawsuit argues that the funding system violates the South Dakota Constitution because the state provides inadequate funding.
After a hearing last month, Circuit Judge Lori Wilbur of Pierre ruled that she would consider whether the state education funding system violates the constitution, but she said courts have no authority to order the Legislature to spend more money on education. A trial is tentatively set for next year.
The state had argued before the hearing that the South Dakota Coalition of Schools should be dismissed as a plaintiff because it represents school districts that have no authority to sue the state, challenge the constitutionality of state law or make a claim against the state treasury.
At the hearing, the coalition agreed to be removed as a named plaintiff. That leaves only the parents as plaintiffs.
Abdallah said state law clearly allows school districts to pay money to belong to a coalition. Once the money is contributed to the Coalition of Schools, the districts have no control over how the money is spent or how the lawsuit is conducted, he said.
The funding arrangement for the lawsuit is legal because no school district is suing the state or controlling the lawsuit, Abdallah said.
Abdallah has asked the auditor general to deny Long's request for audits.
"I think people will see this for what it is, which is a desperate attempt to intimidate school districts and the citizens within those districts," Abdallah said.
Abdallah said the coalition agreed to be removed as a named plaintiff because it does not matter whether its name is on the lawsuit. The parents and children are sufficient plaintiffs to challenge the school funding system, he said.
Long said he had to seek the audits because the coalition avoided the lawsuit-funding issue during last month's court hearing.
If audits find that school districts have improperly spent money by supporting a lawsuit, each district's lawyer would have 60 days to make sure the money is paid back to the district, the attorney general said.
"That doesn't mean the lawsuit would go away," because other sources might be found to pay the expenses of the legal challenge, Long said.
Abdallah said Long has a conflict of interest in raising the allegation of illegal funding of the lawsuit because he is representing the state in the case.
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