MIAMI -DADE SCHOOLS: Miami -Dade School Board votes to sue state over funding - The Miami -Dade School Board will sue the state to make up funding it says it's not getting from local taxes.
Miami Herald, The (FL) - Thursday, December 11, 2008
Author: KATHLEEN McGRORY, kmcgrory@MiamiHerald.com
The Miami -Dade School Board voted Wednesday to sue the state, hoping to recoup $34.7 million in funding it alleges was improperly withheld.
The money is "funding our children were entitled to, and will continue to be entitled to," said schools Superintendent Alberto Carvalho.
The bulk of the money the district hopes to recoup comes from a change in local property taxes, one of two funding methods for public schools. The other method is the state sales tax.
The county uses tax rolls to determine how much is likely to come in locally.
But last spring, the Legislature changed the date for certifying the tax rolls, moving it back from September to March.
Because the new date did not account for appeals, the final tax roll came in dramatically lower than the initial roll. As a result, the district lost about $24 million that it had already built into its budget, Carvalho said.
He urged the School Board to vote to sue the state, saying the state should make up the difference.
And, it would relieve the burden on local taxpayers, Carvalho added.
It is the state that sets the per-student funding formula, meaning the district gets money based on the number of students it serves. All students statewide are to receive the same amount of funding.
"When local property taxes decline, the state has a responsibility to make up the difference with state dollars to ensure equity in education funding for all children," Carvalho said.
District officials say the statute is unconstitutional because the state has a duty to fund public schools equally.
"Going forward, it's an equity issue," said district Chief Financial Officer Richard Hinds. " Miami -Dade is a place where the appeals [from property owners] are much greater than in upstate. We will perpetually suffer from inequality ."
Reached Wednesday evening, the Florida Department of Education declined to comment on the lawsuit.
In addition, the Florida Legislature changed the maximum amount of money school districts can use from their capital accounts to fund property and casualty insurance.
However, Miami -Dade had decided to use capital money to pay its insurance costs -- $34 million -- before the cap was imposed.
Now, the district must use $10 million from its operating account to help pay for the insurance.
The district is also hoping to recoup that because the change was applied retroactively.
The Board hired Edward Guedes of Greenberg Traurig to represent the district.
New School Board member Larry Feldman said he was happy to see the Board take action to recover the money. But member Renier Diaz de la Portilla expressed concern members didn't have the opportunity to discuss the lawsuit at a workshop.
In other business, the Board:
** Heard from Randi Weingarten, president of the American Federation of Teachers. Weingarten implored the board to grant teachers their raises, which were promised in their contract, but later withheld to save money.
"In a crisis like this, you need the teachers more than ever," she said.
** Voted to fully subsidize a $24 million increase in the cost of employee healthcare insurance.
** Voted to have the Council of Great City Schools review the district's food service and construction management departments.
Miami Herald staff writers Hannah Sampson and Nirvi Shah contributed to this report.
The money is "funding our children were entitled to, and will continue to be entitled to," said schools Superintendent Alberto Carvalho.
The bulk of the money the district hopes to recoup comes from a change in local property taxes, one of two funding methods for public schools. The other method is the state sales tax.
The county uses tax rolls to determine how much is likely to come in locally.
But last spring, the Legislature changed the date for certifying the tax rolls, moving it back from September to March.
Because the new date did not account for appeals, the final tax roll came in dramatically lower than the initial roll. As a result, the district lost about $24 million that it had already built into its budget, Carvalho said.
He urged the School Board to vote to sue the state, saying the state should make up the difference.
And, it would relieve the burden on local taxpayers, Carvalho added.
It is the state that sets the per-student funding formula, meaning the district gets money based on the number of students it serves. All students statewide are to receive the same amount of funding.
"When local property taxes decline, the state has a responsibility to make up the difference with state dollars to ensure equity in education funding for all children," Carvalho said.
District officials say the statute is unconstitutional because the state has a duty to fund public schools equally.
"Going forward, it's an equity issue," said district Chief Financial Officer Richard Hinds. " Miami -Dade is a place where the appeals [from property owners] are much greater than in upstate. We will perpetually suffer from inequality ."
Reached Wednesday evening, the Florida Department of Education declined to comment on the lawsuit.
In addition, the Florida Legislature changed the maximum amount of money school districts can use from their capital accounts to fund property and casualty insurance.
However, Miami -Dade had decided to use capital money to pay its insurance costs -- $34 million -- before the cap was imposed.
Now, the district must use $10 million from its operating account to help pay for the insurance.
The district is also hoping to recoup that because the change was applied retroactively.
The Board hired Edward Guedes of Greenberg Traurig to represent the district.
New School Board member Larry Feldman said he was happy to see the Board take action to recover the money. But member Renier Diaz de la Portilla expressed concern members didn't have the opportunity to discuss the lawsuit at a workshop.
In other business, the Board:
** Heard from Randi Weingarten, president of the American Federation of Teachers. Weingarten implored the board to grant teachers their raises, which were promised in their contract, but later withheld to save money.
"In a crisis like this, you need the teachers more than ever," she said.
** Voted to fully subsidize a $24 million increase in the cost of employee healthcare insurance.
** Voted to have the Council of Great City Schools review the district's food service and construction management departments.
Miami Herald staff writers Hannah Sampson and Nirvi Shah contributed to this report.
Edition: D1
Page: B1
Provided By: The McClatchy Company
Index Terms: local; education; state; Florida Department of Education; Greenberg Traurig; Council of Great City Schools; Miami Herald
Personal Name(s): Alberto Carvalho; Richard Hinds; Edward Guedes; Larry Feldman; Randi Weingarten; Hannah Sampson
Record Number: 200812110301KNRIDDERFLMIAMIH_dadeskul
Copyright (c) 2008 The Miami Herald
Page: B1
Provided By: The McClatchy Company
Index Terms: local; education; state; Florida Department of Education; Greenberg Traurig; Council of Great City Schools; Miami Herald
Personal Name(s): Alberto Carvalho; Richard Hinds; Edward Guedes; Larry Feldman; Randi Weingarten; Hannah Sampson
Record Number: 200812110301KNRIDDERFLMIAMIH_dadeskul
Copyright (c) 2008 The Miami Herald
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