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Judge says schools cannot finance lawsuit

Posted: Friday, August 22, 2008
PIERRE, S.D. (AP) -- School districts cannot finance a lawsuit that challenges South Dakota's system for funding education, a circuit judge ruled Thursday.

Circuit Judge Lori Wilbur of Pierre said school districts have no legal standing to sue the state in a challenge of the constitutionality of the school funding system. They also cannot pay the legal bills of others who are named parties in the constitutional challenge, she said.

Nearly 100 school districts, or about two-thirds of the districts in the state, have given money to the South Dakota Coalition of Schools to help finance the lawsuit.

Wilbur's ruling will not prevent the trial in the constitutional challenge from starting as scheduled Sept. 2, said Scott Abdallah of Sioux Falls, the principal lawyer in the case challenging the education funding system.

"From the beginning, our primary goal has been to make sure that every South Dakota child receives their constitutional right to an adequate education, regardless of where they live. We will continue to fight for that objective even if the school districts are unable to support this cause," Abdallah said in an e-mail message.

South Dakota Attorney General Larry Long, who had questioned whether school districts could finance the lawsuit, agreed that the lawsuit challenging the educational funding system will continue.

"I think it does mean they are going to have to find a new source of funding involving non-taxpayer dollars," Long said.

Rory King of Aberdeen, a lawyer representing some school districts, said he will seek a quick appeal of Wilbur's ruling so the South Dakota Supreme Court can decide whether school districts can finance the lawsuit. He said he respects Wilbur's decision, but disagrees with her interpretation of the law.

"We continue to believe that independently elected school boards have the right and the duty to protect the constitutional rights of the children within their district," King said.

The South Dakota Coalition of Schools, a nonprofit corporation that fights for education funding, was initially a plaintiff in the lawsuit challenging the state education funding system. The coalition withdrew after the attorney general's office argued it could not sue the state because it represented school districts.

That left a handful of students and parents as plaintiffs in the lawsuit, but the coalition paid the legal costs with money contributed by school districts.

The lawsuit alleges the state's school funding system substantially underfunds schools and violates a constitutional provision guaranteeing all children access to a free, adequate and quality education.

Wilbur ruled last year that she would consider whether the state education funding system violates the South Dakota Constitution, but she said courts cannot order the Legislature to spend more money on schools.

In a hearing Tuesday, the attorney general's office argued that school districts should not be allowed to be parties to the lawsuit or to fund it because the Legislature created school districts and "creations cannot sue the creator."

Wilbur agreed that school districts cannot be parties to the lawsuit or use district money to pay for it.

Prior court rulings have found that taxpayers have standing to file such lawsuits, but a school district is not a taxpayer, the judge said.

The districts argued that they should be allowed to sue because school board members have the legal duty to provide students with sufficient funding. Wilbur said school districts are creations of the Legislature, so they cannot violate their duties when they are doing what the law requires, which is serving the Legislature.

The districts also contended that they have authority to seek court rulings on matters of great public importance. The judge said education is of great importance, but taxpayers have the legal standing to pursue a lawsuit.

Wilbur also said school districts do not have authority to pay the legal bills of others who are plaintiffs in the lawsuit.

"Given the fact that school districts are arms of the Legislature, and their purpose is to serve the Legislature, it would be inconsistent to state that they have a valid interest in challenging the legislative scheme for school funding in this situation," the judge wrote.

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