# Petition for Writ of Certiorari — Bergman v. Kansas (No. 06-472)

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386016_1558%3A1

## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2006

## Text

Supreme Court. U.S.
() Pree aut US

No. 94-47 2 SEP 13 2006

OFFICE OF THE CLERK
In The

Supreme Court of the Anited States

*

ALEXANDER, KATHERINE, WILLIAM, and
JAMES BERGMAN, by and through their parents and
next friend, BRAD and LIBBY BERGMAN, et al.,

Petitioners,

V.

STATE OF KANSAS, et al.,

Respondents.

¢

On Petition For A Writ Of Certiorari
To The Kansas Supreme Court

¢

PETITION FOR WRIT OF CERTIORARI

¢

TRISTAN L. DUNCAN

(Counsel of Record)

SHOOK, HARDY & BACON L.L.P.
2555 Grand Blvd.

Kansas City, Missouri 64108-2613
Telephone: (816) 559-2040
Facsimile: (816) 421-5547
Attorneys for Petitioners

September 13, 2006

COCKLE LAW BRIEF PRINTING CO «800) 225 5964
OR CALL COLLECT (402) 342-2831

I. QUESTIONS PRESENTED

1. Does a State violate Equal Protection when it
purposefully disadvantages school children by unevenly
restricting funds available for public education and then
prohibiting under funded school districts from funding the
difference out of local funds?

2. Does a State violate the First and Fourteenth
Amendments when it purposefully but unevenly restricts
State funds available for public education and then prohib-
its the under funded school districts from funding the
difference out of local funds by imposing a mandatory cap
on spending on public education?

3. Did the Kansas Supreme Court violate the Four-
teenth Amendment’s Due Process Guarantee when it
refused to permit non-party parents and school children to
intervene in an action in which the Court indefinitely
suspended their right to use local funds to improve their
public education without giving them notice or an oppor-
tunity to be heard?

4. Did the Kansas Supreme Court violate the 14th
Amendment’s Due Process Guarantee when it ignored
common law limitations on its remedial discretion and
arbitrarily ordered the legislature to indefinitely suspend
petitioners’ liberty and property interests until the legisla-
ture funded an undefined level of public education for all
other children?

ii
II. PARTIES TO THE PROCEEDING

Petitioners are parents and school children attending
the Shawnee Mission Unified School District No. 512 or
the Blue Valley Unified School District No. 229: Alexander,
Katherine, William, James, Brad, and Libby Bergman,
Patrick, Doug, Bob, and Debbie Dellinger, Madison,
Breanna, and Carol Rowe, Connor, Cameron, and Ann
Carollo, Sydney, Wyatt, and Kim Edmisten, Sarah, Na-
than, and Dan Goldman, Abigail, Parker, and Bonnie
Heying, Connor, Kylie, Courtney, and Tracy Rellihan, Ben
and Mary McBride, Graham and Noah Eidemiller, Janice
Langholz, Peter, Robby, Joseph, and Judy Moriarty, A.J.,
Will, Maureen and Trish Orth, Joe, Sydney, and Mary
Bahr, Maxwell, Emma, and Christine Braasch, Chase and
Susan Schaible Ainsworth, William, Harrison, and Brian
Short, Helen, Anna, and Mary Petrow, Johnnie, Danielle,
Alexandria, and Julie Norton, Morris, Charles, Ronald,
and Barbara Bronstein, Lauren, Erik, Janis, and Chris-
tian Hansen, Ryan, Michael, Daniel, Greg, and Laurie
Widrig, Lucy, Mary, and Dan Bush, Jonathon, Jefferson,
Caroline, Brad, and Rebecca Adams, Andrew, Alexandra,
Katie, Steve, and Lori Dykeman, Taylor, Zachary, Donna,
and Jim Wilson, Jason, Michael, Michelle, and James
Hoffman, Kristin, Eric, Mary, and Dave Larson, Grace,
John, and Aymi Foley, Max, Reilly, Brad, and Michelle
Agadoni, John Tyler, Megan, Caroline, Susan, and Mark
Koenig, Addison, Jillian, and Michelle Schlatter, Hannah,
Max, Janice, and Jeff Pinson, Emma, Cameron, David,
and Susan Keefer, John, Paige, Kathryn, and Jim Dussold,
Brenan Patrick, Conner James, Dillon Thomas, Linda, and
Timothy Cavanaugh, Tyler, Andre, Ahmet, and Lori
Kodanaz, Justin, Alexandra, Reid, Rhonda, and Patrick

iii
PARTIES TO THE PROCEEDING - Continued

Johnston, Mark, John, Steven, Jennifer, Steve, and Jody
Bolton, Blake, Erin, Benjamin, Phil, and Mary Hylton,
Bradley, Leslie, Doug, and Shea Dixon, Spencer, Kendra,
Betsy, and Tommy Avenia, Trent, Gardner, and Sheryl
Wright, Morgan, Elizabeth, Lynne, and Gerald Matile,
Marissa, Hayley, Stacey, and Howard Wizig, John, Joseph,
William, and Anne Blessing.

Respondents are the Attorney General of the State of
Kansas, the Kansas State Board of Education, and various
state officials charged with enforcement of the challenged
Kansas school finance statutes: Connie Morris, Janet
Waugh, Sue Gamble, John W. Bacon, Bill Wagnon, Kathy
Martin (substituted party), Ken Willard, Carol Rupe, Iris
Van Meter, Steve E. Abrams, Bob L. Corkins (substituted
party), the Salina Unified School District No. 305, the
Dodge City Unified School District No. 443, and parents
and school children attending those two school districts in
Kansas: Ryan Montoy, Lajuan and Mytesha Robinson,
Sierra and Seth Gwin, Rene Bess, Keely Boyce, Cruz
Cedillo, Lynette Do, Christopher and Monique Harding,
Joseph Hawkinson, Jennie Nguyen, Sandy, Nicole, and
Bruce Thu Pham, Andrea Bethke, Damian and Dylan
Arredondo, Eduardo Dominguez, Chris Freeman, Monica
Garcia, William Zachary Harrison, Robert Hindman, Alex
Jake, Yadira Moreno, Manuel Solorzano, Benjamin
Vicente, Brittany Ash-Clark, Jin Jeon, Jacob Stack,
Bronson Waite, Jacob Lemaster, Nicholas Woodfield
Brooke, Blaine Smith, Jerry Dix, Tanner Robidou, Justin
Hostetter.

iv

Ill. CORPORATE DISCLOSURE STATEMENT

None of the Petitioners are a corporation that has
issued shares to the public, nor are any a parent corpora-
tion, a subsidiary or affiliate of corporations that have
done so.

IV. TABLE OF CONTENTS

Page
ee OIL sn pesnaceoseninanseunies i
Il, Parties to the Proceeding. ..........cssssesesscocsesesseees il
III. Corporate Disclosure Statement...................0+5 iv
ee a a camiaisemeneiienl Vv
ge a I 0 ac sasetreuapeuneeitngeenis vii
VI. Opinions and Orders Below........................2..06- 1
ye RESELL ee oreo ROC ne OTE STOO OT 1
VII. Constitutional and Statutory Provisions ..........
Be IE OE CI Si oonccnvecowcccssvcceccenecncovcces 2
X. Reasons For Granting the Writ....................... 13

A. This case raises important issues of national
significance by seeking to test the constitu-
tionality of a state’s efforts to create equality
in its public school system by depriving some
children, who the state perceives, wrongly, as
privileged or advantaged, of equal protection
and fundamental liberties guaranteed to
them under the Constitution........................ 13

B. This case involves an important question of
federal law that has not been, but should be,
decided by this Court with respect to the
constitutional limits on a state court’s adju-
dication of the constitutionality of a state’s
school finance scheme under that state’s
constitution because, if left undisturbed, the
Kansas Supreme Court’s decisions disrupt
the balance of power within our federalist
system and interfere with the constitution’s
preservation of individual liberties............... 19

NRE EERE nN a A RENEE SLATE 23

V. TABLE OF AUTHORITIES

Page
CASES
Brotherhood of Railroad Trainmen v. Baltimore &
oe ee SS Lk; | OTe e ND 16
Brown v. Board of Ed. of Topeka, 347 U.S. 483
ERAT NeRRE EO Rate ee ACHE tT eA EL ETE 3
Buckley v. Valeo, 424 U.S. 1 (1976)..........c:ccccceessessreeeeereees 12
Devlin v. Scardetti, 536 U.S. 1 (2002)..........c eee eeceeeeees 3, 16
Honda Motor Co. v. Oberg, 512 U.S. 415 (1994).......... 12, 20
International Union, United Automobile, Aerospace
and Agricultural Implement Workers v. Scofield,
ee See Ce Ce ereheneeinasaidesinsessedaeabscustedninamvetinases 16
Keyishian v. Board of Regents of the University of
the State of New York, 385 U.S. 589 (1967)................. 12
Meyer v. Nebraska, 262 U.S. 390 (1923)...........ceceeseceeee sees 14
Missouri-Kansas Pipe Line Co. v. United States, 312
Bae Bee I ciecsecesvetsancccpaceentaccmnammbbasnniaoasaibiausin 17
Missouri v. Jenkins (Jenkins I), 495 U.S. 33 (1990)....12, 22
Montoy v. State (Montoy ID), 102 P.3d 1160 (Kan.
Es covcnimdcasciniasicsipsubdadinemansilammmssdienomaamseamia: a
Montoy v. State (Montoy III), 112 P.3d 923 (Kan.
RE Pisecouicusstecticsnneincconenecebeevsdisnnbeeddaiabindaniaddasanaiatabeadelannss 1,8
Montoy v. State (Montoy IV), 138 P.3d 755 (Kan.
Saath ss asussashoisdsinetbele und supbtaakiidicbeiesbiiaesisailcccbadeiaieidghiasaddainlieianiiliaapaaiais 1
Moore v. City of East Cleveland, 431 U.S. 494
PIE WF Picicikacsdchesitoscenieatdinbsdastiicadioadounmmadaddeitenteaaasmanpalis 11, 12,14

vil i

V. TABLE OF AUTHORITIES —- Continued

Page

Pierce v. Society of Sisters, 268 U.S. 510 (1925).......... 14, 15
Pruneyard Shopping Center v. Robins, 447 U.S. 74

E Fire Pcisisecsdiainsecednatesisadbdscddacentasaibaesianiciamaniameiaal 21
San Antonio Sch. Dist. v. Rodriguez, 411 U.S. 1

CRP aiciscinsetnisetavivinansenteaiiianmniiacmaneaaapidmaaals 11, 14
U.S.D. 229 v. State, 885 P.2d 1170 (Kan. 1994), cert.

denied, 615 U.S. 1144 (190B)...cccccsorocossessessonescoovereoscess 5,7
Village of Euclid v. Amber Realty Co., 272 U.S. 365

SPINE cocsnchsnineapesieivnictesiecninseaieveddeaietmesaaiani Glasiacaatoen 21
Young v. American Mini Theatres, Inc., 427 U.S. 50

Cea sccninscniheinsdintesssuticcsannstonsareeinatemainae aime eee 21
Zelman v. Simmons-Harris, 336 U.S. 639 (2002)............. 16
CONSTITUTIONAL PROVISIONS
Rye COME, PINE, 5. OE eskccscnticcvcstiiccamnnaaen 1, 21
Ue. Comat, Hamam, TRG, 6 F seccesissscocvscocessosves 1, 2, 20, 21, 22
Ses SUE, BG FF, Be cssicinccidasenineiennea nese 1, 21
Be, TE, TNE: GO Gi csictictsnccdacesnsariciadekeusacuee 2,8, 23
STATE AND FEDERAL REGULATIONS
Be es SBD victncincinincarsthiradieabiemcaiegmcntianans 1
Sa. Far OOe OF BOM, scscsnscitncssiatsbabincndaataanin 4
Pete, FTI astiichensiccinsictadarseiiatclomeiameeaacan 2

VI. OPINIONS AND ORDERS BELOW

The Opinion of the Supreme Court of Kansas, dated
January 3, 2005, is reported at Montoy v. State (Montoy
IT), 102 P.3d 1160 (Kan. 2005). App. 81. The Opinion of the _
Supreme Court of Kansas, dated June 3, 2005, is reported
at Montoy v. State (Montoy III), 112 P.3d 923 (Kan. 2005).
App. 38. The Order of the Supreme Court of Kansas, dated
June 15, 2006, is unreported. App. 1. The Opinion of the
Supreme Court of Kansas dated July 28, 2006 is reported
at Montoy v. State (Montoy IV), 138 P.3d 755 (Kan. 2006).
App. 2.

Vil. JURISDICTION

On June 15, 2006, the Kansas Supreme Court denied
Petitioners’ Motion to Intervene without opinion. App. 1.
On July 28, 2006, that Court entered an order dismissing
the school finance case and releasing jurisdiction. App. 2.
This Court has jurisdiction under 28 U.S.C. § 1257(a).

VII. CONSTITUTIONAL AND
STATUTORY PROVISIONS

1. The First Amendment to the United States Con-
stitution provides in relevant part that: “Congress shall
make no law ... abridging the freedom of speech, or of the
press; or the right of the people peaceably to assemble, and
to petition the government for a redress of grievances.”
U.S. Const. Amend. I, § 1.

2. The Fourteenth Amendment to the United States
Constitution provides in relevant part: “No state shall...
deprive any person of life, liberty or property, without
due process of law; nor deny to any person within its

jurisdiction the equal protection of the laws.” U.S. Const.
Amend. XIV, § 1.

3. Article 6 §6 to the Kansas Constitution provides
in relevant part: “The legislature shall make suitable
provision for the finance of the educational interests of the
state....” Kan. Const. Art. 6 § 6.

6. The Kansas school finance statutes in relevant
part are set out in the Appendix to the Petition. K.S.A. 72-
6433(b)(9B). App. 92.

IX. STATEMENT OF THE CASE

“The year was 2081, and everybody was finally
equal. They weren’t only equal before God and
the law. They were equal every which way. No-
body was smarter than anybody else. Nobody
was better looking than anybody else. Nobody
was stronger or quicker than anybody else. All
this equality was due to the 211th, 212th, and
213th Amendments to the Constitution, and to
the unceasing vigilance of agents of the United
States Handicapper General.”

— by Kurt Vonnegut, Harrison Bergeron (1961)
attached in Appendices. App. 95.

“My story mocks the idea of legally eliminating

envy by outlawing excellence, which is precisely

what the legislature means to do in the public J
schools, by putting a cap on local spending on

them. Should it prevail it will be possible for me

to say there are no longer any truly excellent

public schools in all of Kansas. Talk about a level

playing field!”

3

— by Kurt Vonnegut, Unpublished Letter to the
Editor of the Lawrence Journal-World, dated
May 12, 2005 attached hereto in the Appendices.
App. 94.

This case may be the most important litigation since
Brown v. Board of Education, 347 U.S. 483 (1954). No-
where is the juxtaposition of the two most revered consti-
tutional values, liberty and equality, more at war and in
desperate need of constitutional reconciliation than in this
case. Here we have the question: How do you strike the
proper balance between the liberty and equality interests
of parents and local school districts who are willing and
able to do more for their children than what the state is
willing or able to provide and the equality interests of
those parents and school districts who are unwilling or
unable to do so? More importantly, who gets to decide the’
question — a state’s highest court or this Court?’

At bottom, this case asks whether it is constitutional
for a state to impose on public education spending caps
which, in effect, handicap some school districts who the
state perceives, wrongly, as privileged or advantaged, to
achieve the appearance of equality among all school
districts? More importantly, is it constitutional for a state

' As discussed herein, if petitioners are bound by the Kansas
Supreme court decisions, then they should be treated as a “party,” not
as strangers to the action, because they, in effect, are non-named class
members whose interests were not adequately represented by the
existing parties to the litigation and who timely objected to the argu-
ments advanced by plaintiffs on their behalf at the earliest opportunity
after they became aware of them. Devlin v. Scardetti, 536 U.S. 1 (2002)
(holding that non-named class members were entitled to appeal without
first intervening when petitioners’ interests were not adequately
represented by existing parties).

4

to impose mandatory spending caps, not to prevent some
school districts from being better than others, but to force
some schoo] districts into a permanently disadvantaged
state by prohibiting the taxpayers within under funded
districts from using their own money to fund the differ-
ence? When a state first deprives some of its children of an
equal learning opportunity and then wrests from their
parents the freedom to use their own money to make up
the difference, does such oppressive state action violate
the federal guarantee of equal protection and substantive
due process?

1. Historical Background.

In 1992, seven years prior to the filing of the underly-
ing lawsuit, the Kansas legislature amended the school
finance statutes to create a system of funding public
education whereby all schools in the state would receive
comparable per pupil operating expenditures. Before then,
dating back to Kansas’s statehood in the 1800s all school
districts in the state had been funded entirely from local
property taxes, and the per pupil operating expenditures
widely varied between school districts. Kansas School
District Finance and Quality Performance Act (SDFQPA),
K.S.A. 72-6405 et seg. These 1992 amendments changed
the system of funding public education by redistributing
tax revenue from local property, sales and income taxes to
all school districts in the state according to a weighted
formula. The formula established a foundational level of
education to which all children in Kansas were entitled -
the per pupil base rate. App. 85.

The Act included a supplemental means for funding
educational services called the Local Option Budget

5

(“LOB”). The LOB permitted local school districts to seek
voter approval for additional local taxes to improve the
education in that district. The Kansas school finance
formula, however, set a ceiling on the amount of money
any local school district could raise a local taxes for public
education. This ceiling is known as the cap on the local
option budget (the “Cap”). App. 13.

In 1992, the Blue Valley Unified School District No.
229 challenged the legislature’s school finance formula as
unconstitutional, including the cap on local spending.
U.S.D. 229 v. State, 885 P.2d 1170 (Kan. 1994), cert.
denied, 515 U.S. 1144 (1995). Applying a rationality
standard of review, the Kansas Supreme Court concluded
that all the funding differentials within the school finance
formula were rationally related to a legitimate govern-
mental objective and, therefore, were constitutional under
both the state and federal constitutions. App. 85.

Seven years later, in 1999, plaintiffs filed the underly-
ing lawsuit against the State of Kansas, the Kansas State
Board of Education, and various state officials responsible
for enforcing the statute, again challenging the school
finance scheme as unconstitutional under both the state
and federal constitutions. This time, however, the court
came to the opposite conclusion. App. 81, 88. At trial, the
court accepted plaintiffs’ federal equal protection argu-
ment and held that the school finance formula was not
rationally related to 4 legitimate governmental purpose
and caused a disparate impact on minority children. App. 84.
The trial court concluded that the plaintiffs had proven that
the insufficiency of funding was a proximate cause of the
plaintiffs’ poor performance on standardized tests. The court
was persuaded by plaintiffs’ argument that the “achievement

6

gap” proved plaintiffs were receiving a constitutionally
inadequate and inequitable level of education. App. 88-89.
The “achievement gap” is the difference between higher
test scores on standardized tests taken by Caucasian
students, on average, and the test scores of minorities,
bilingual, and special education children.

Plaintiffs argued that one of the most significant
factors contributing to low standardized test scores for
plaintiff school districts was large class sizes. The-trial
court agreed that class sizes in large to midsize school
districts had become “too large for adequate learning to
take place.” The district court concluded, therefore, that
the Kansas School District Finance and Quality Perform-
ance Act was unconstitutional.

This gross class size disparity was not unique to the
plaintiff school districts, however. Petitioners’ districts had
even larger average class sizes than the plaintiff school
districts. The cap prevented petitioners’ school districts
from achieving small class sizes commensurate with low
enrollment districts as well and prohibited them from
achieving the most important condition for improved
learning — small class sizes.”

? (See-Plaintiffs-Appellees brief at 34, 58, citing R. XXIII 447, R.
XLII, 602, R. XLIV, 3263-64) (“Dodge City, Garden City, Wichita,
Topeka, and Kansas City all now have pupil teacher ratios ranging from
17 to 1 to 22 to 1 compared to the significantly lower 7 to 1 and 12 to 1
pupil teacher ratios for some of the low-enrollment districts.”).

> December 2005 Legislative Post Audit Committee Cost Analysis,

Executive Summary, p.23. The Kansas Supreme Court referenced this

report in its 7/28/06 final opinion. The report concluded that smal class

size is the only proven determinant of improved academic performance:

“Four of Five class size studies we reviewed found that smaller classes
(Continued on following page)

Plaintiffs’ legal strategy, however, was to argue to the
court that petitioners’ school districts neither needed nor
deserved additional funding. App. 66. Plaintiffs painted a
picture of class warfare between “rich” school districts and
“poor” school districts and repeatedly described to the
court a disparity between “the haves and have nots.”

The reality was, however, that while petitioners’
schools were located in a property-rich area, their schools
were not wealthy. On a comparative basis, the plaintiff
school districts were, in fact, wealthier than petitioners’
school districts because they received more money from
the state in per pupil operating expenditures than did the
non-party school districts. Shawnee Mission students for
example receive $6,833, whereas Dodge City’s students
receive $8,216, over a $1,000 per pupil difference. See Ks.
Board of Education’s Per Pupil Expenditure Comparison
By District for 2005-2006 school year.

On March 24, 2004, the defendants appealed to the
Kansas Supreme Court, and on January 3, 2005, the court,
in effect, overruled its earlier decision in U.S.D. 229 and
affirmed the district court in part, concluding that the
legislature had failed to make suitable provision for the
finance of the public schools as required by Article 6, § 6 of
the Kansas constitution. Montoy v. State, 102 P.3d 1160
(Kan. 2005) (Montoy II). App. 81, 84. As a consequence, the
court ordered the legislature to pass new legislation which
would infuse substantially more money into public education

led to improved academic outcomes ... Studies of factors other than
class size were less consistent.”

* See 4/4/05 Letter from plaintiffs to the Kansas Supreme Court,
p.4.

8

and reallocate state funds according to new “guidelines,”
i.e., (1) the actual costs of funding “an adequate education”
and (2) equity. App. 90.

The court stayed the issuance of the mandate to allow
the legislature a reasonable time to correct the constitu-
tional infirmity in the school finance formula and set a
deadline of April 12, 2005 for that to be accomplished. App.
90-91. The legislature responded by enacting changes to
the school finance formula on March 30, 2005 (2005 H.B.
2247 (L. 2005, ch. 152], modified by 2005 S.B. 43 [L. 2005,
ch. 194] [collectively referred to as H.B. 2247]). See Montoy
v. State, 112 P.3d 923 (Kan. 2005) (Montoy III). App. 38.

For the first time since 1992, the legislature ad-
dressed the specific needs of many non-party school
districts, including petitioners’ school districts, by enacting
- local funding provisions beneficial to these school districts.
These new local funding provisions were known as: (1) a
new extraordinary declining enrollment factor, (2) an
increase in the cap on the local option budget, and (3) a
cost of living increase for teachers who live and work in
relatively more expensive urban areas (collectively, the
“local funding provisions”). App. 61-64, 65-67.

On June 3, 2005, however, the Kansas Supreme Court
held that the changes made by H.B. 2247 failed to bring
the state’s school financing formula into compliance with
Article 6 § 6 of the Kansas constitution. App. 75-80. Most
alarming was the court’s stay of the new local funding
provisions, including the increased cap, passed by the
legislature in H.B. 2247. App. 79. The court stated:

9

HB 2247’s increased dependence on local prop-
erty taxes, as decided by each school district, ex-
acerbates disparities based on district wealth.
We fully acknowledge that once the legisla-
ture has provided suitable funding for the
state school system, there may be nothing
in the constitution that prevents the legis-
lature from allowing school districts to
raise additional funds for enhancements to
the constitutionally adequate education already
provided. At least to the extent that funding re-
mains constitutionally equalized, local assess-
ments for this purpose may be permissible.
Clearly, however, such assessments are not
acceptable as a substitute for the state funding
the legislature is obligated to provide under Arti-
cle 6 § 6. That should pre-exist the local tax ini-
tiatives. (emphasis added.) App. 69..

Thereafter, on July 6, 2005, the legislature enacted
S.B. 3 (L. 2005 Special Session, ch. 2), and in a subsequent
opinion, the court ruled that it, in effect, complied with the
court’s June 3, 2005 order, for “interim purposes” only.
App. 11. The court retained jurisdiction to review further
legislative action in the 2006 session. Thereafter, the
legislature enacted changes to the school finance formula
yet again in S.B. 549 (L. 2006, ch. 197), which was signed
by the governor on May 19, 2006.

On July 28, 2006, the court determined that with S.B.
549, the legislature had complied with its prior orders and
dismissed the appeal with instructions to the trial court to
dismiss the case. App. 24. Although the court lifted the
stay, the court, in effect, upheld the cap on the local option
budget, and the cap continues in operation to this day. The
court’s conditions on the operation of local funding provi-
sions also continue in force. App. 26.

10

2. The manner of presenting the federal ques-
tions.

Although plaintiffs challenged the Kansas school
finance statutes on behalf of all children in Kansas,
petitioners never received notice of the lawsuit. App. 83-
84. Moreover, the rules governing class actions, joinder of
parties and claims, including necessary and indispensable
parties, appear to never have been followed.

Plaintiffs, in effect, acted as class representative but
did not adequately represent the interests of petitioners.
Plaintiffs opposed allowing any local taxation for public
education and, in the remedial phase of the case, vigor-
ously opposed removal, or lessening, of the cap in any way.
They urged the Court to redistribute funding away from
petitioners’ schools to their own schools. Their interests
could not have been more adverse. The state defendants
also failed to adequately represent petitioners’ interests
since they obviously sought to uphold the school finance
scheme, including the cap, as constitutional.

The first time petitioners became aware of the under-
lying lawsuit was when they read about it in the newspa-
pers sometime after the Kansas Supreme Court’s January
3, 2005 surprising ruling. App. 81. At that time, petition-
ers had no reason to suspect that the Court would change its
holding from its prior controlling precedent. More impor-
tantly, it was not until the Court’s June 3, 2005 Decision that
there was ever any hint that using local taxation for public
education, while constitutional, was nevertheless inequitable
and as such, impermissible. App. 69-79.

Petitioners first tried to protect their interests by
filing an amicus curiae brief during the court’s briefing
schedule prior to its June 3, 2005 Decision. App. 43. Then,

11

on June 13, 2006, petitioners filed a Motion to Intervene.
App. 1.

The federal questions pressed by petitioners were
clear and precise and are quoted in relevant part below:

“In Rodriguez, the United States Supreme
Court expressly reserved the question of the con-
stitutionality of state ceilings on local taxation
which inhibit under-funded schools from improv- -
ing their per pupil operating expenditures. The
high Court expressly stated it would address that
issue ‘another day’...”

1. Equal Protection Analysis.

In 1973, the United States Supreme Court
decided San Antonio Sch. Dist. v. Rodriguez, 411
U.S. 1 (1973), ... Justice White stated that he
believed a state’s ceiling on local taxation pre-
sented a federal constitutional question for under
funded schools. As he observed,

But state [Texas] law places a... ceil-
ing on the ... tax rate, a limit that
would surely be reached long before
Edgewood (the plaintiff school district)
attained an equal yield [to other school
districts]. Edgewood is thus precluded
in law, as well as in fact, from achieving
a yield even close to that of some other
districts. Rodriguez, 1 U.S. at 67.

2. Substantive Due Process Analysis.

For the reasons stated by Justice Stevens in
Nixon v. Shrink, 528 U.S. 377 (2000) and the
United States Supreme Court in Moore v. City
of East Cleveland, 431 U.S. 494 (1977) the Kan-
sas cap on expenditures for public education is

12

unconstitutional under a substantive due process
analysis because the cap unduly interferes with
the fundamental rights of citizens to spend their
own money on something they value, i.e., im-
provement of their children’s local public educa-
tion. Nixon, 528 U.S. at 398-399, citing, Moore »v.
City of East Cleveland, 431 U.S. 494, 513 (1977).

3. First Amendment Analysis.

The Kansas legislature’s purpose in setting a
ceiling on local taxes for improving public educa-
tion is allegedly to equalize funding among
school districts throughout the state for public
education. ... However, in Buckley v. Valeo, 424
U.S. 1 (1976), the United States Supreme Court
rejected government imposed spending caps for
similar egalitarian purposes as unconstitutional
deprivations of liberty under the First Amend-
ment.... The point was an uninhibited, wide-
open, robust marketplace of ideas was compro-
mised by such expenditure caps. See Keyishian v.
Board of Regents of the University of the State of
New York, 385 U.S. 589 (1967) (public education
as a locus for the uninhibited, wide-open, robust
marketplace of ideas deserving First Amendment
protection).

4. Procedural Due Process.

The federal Constitution imposes an ‘inher-
ent equitable limitation’ on a state court’s reme-
dial power through the Due Process Clause of the
14th Amendment ... [which this Court violated
in] staying the local funding provisions, citing,
Missouri v. Jenkins (Jenkins I), 495 U.S. 33
(1990) and Honda Motor Co. v. Oberg, 512 US.
415 (1994).”

13

Petitioners now seek certiorari to review the Kansas
Supreme court’s denial of their intervention in this case.
For all intents and purposes, petitioners were non-named
class members who were foreclosed from intervening of
right in public interest litigation and barred from assert-
ing their own claims at the time the Kansas Supreme
Court was determining the constitutionality of the school
finance statutes and fashioning relief. App. 83-84. As
virtual class members, petitioners are entitled to appeal.
Petitioners, therefore, seek review of the state Supreme
court’s decisions.

X. REASONS FOR GRANTING THE WRIT

A. This case raises important issues of national
significance by seeking to test the constitution-
ality of a State’s efforts to create equality in its
public school system by depriving some chil-
dren, who the State perceives, wrongly, as privi-
leged or advantaged, of equal protection and
fundamental liberties guaranteed to them under
the Constitution.

In a nation founded on individual liberty, self-
government, and local initiative, it is inconceivable that a
state would prohibit any community from enhancing
public education through civic self-sacrifice and collective
democratic action, but Kansas has done just that. The
state’s unstated, but ostensible, purpose is to make the
state’s public education uniform, but it accomplishes this
goal by obstructing its citizens’ freedom to use their own
money to educate their children.

14

An objective observer might wonder how there could
be any harm if children in one district or any district got
“too much” education. Maybe the thinking is that if chil-
dren learn “too much,” that is, if they excel, then, by
definition, they will no longer be “equal,” which outcome
must, according to the state, be prevented by severely
rationing the funds certain districts may raise from local
taxpayers. The state’s remedy is to impose an artificial
economic burden — a “cap” (read handicap) — to insure that
the spending per student remains artificially low and
cannot be overcome by the concerted democratic action of
local citizens.

Kansas is not alone. At least five other states also
impose spending caps on public education.’ This Court has
long held, however, that a parent’s ability to “do more for
one’s children,” including the “freedom to devote more
money to the education of one’s children,” is a fundamental
right under the Federal Constitution. San Antonio Sch.
Dist. v. Rodriguez, 411 U.S. 1, 48 (1973); Meyer uv. Ne-
braska, 262 U.S. 390 (1923); Pierce v. Society of Sisters,
268 U.S. 510 (1925); Moore v. City of East Cleveland, 431
U.S. 494 (1977). When the Kansas Supreme Court upheld
the state law capping local school taxes at 27-31% of the

* Alaska, AK Stat. 14.17.410(cX1) & (2) (23% spending cap), Colo-
rado, CRS 22-54-108(3b)(1) (20% cap on total program funding from
local sources); Kentucky, KRS, 157.440(2Xa) (no more than 30% of the
district’s budget can come from local levy); Minnesota, Minn. Stat. 126
C. 17(2) (any additional per pupil spending raised through local
resources must not exceed 18.2% of the district’s total formula allow-
ance); Montana, MCA 20-9-308. In contrast, the majority of states
appear to either not impose such caps on total spending for public
education or if they do, the caps can be overridden by a vote of the local
taxpayers.

15

state’s funding level for a school’s operating budget, a
federal question was triggered because Kansas’s cap on
local taxation deprives Kansas citizens of fundamental
federal rights.

Now Kansas citizens who vote to tax themselves more
for the education of their children will be in violation of
the state law and, arguably subject to punishment. We
still are free to spend unlimited amounts on things that
are not in the best interests of our children, like spectator
sports, video games, and junk food, but it is illegal for
petitioners to democratically vote an additional school tax
upon themselves for the purpose of improving the educa-
tion of all the children in their districts. Thus, the state
ceiling on local taxation strips them of their political
freedom.

As a result of the Kansas Supreme Court’s rulings,
petitioners will now be attending schools that are pur-
posely under funded by the state and have some of the
highest average class sizes in the state. They are forbidden
to use their own local funds to offset this disparity. Yet,
they are still required to fund the education of children in
districts that are not under funded and in which class
sizes are measurably smaller. App. 2-37.

Ironically, the constitution forbids outlawing private
schools; therefore, the wealthy can spend wnlimited sums
on their children’s private education — a disparate, but
constitutional, result. See Pierce v. Society of Sisters, 268
U.S. 510 (1925). The constitution also prohibits outlawing
vouchers, which means private schools already are subsi-
dized with public funds. The “freedom of choice” of parents

16

to educate their children in either public or private schools
is a superior constitutional value and therefore justifies
this disparate, but constitutional, result. See Zelman v.
Simmons-Harris, 336 U.S. 639 (2002). However, if the
average Kansas family wants to support their public
schools through higher voluntary local taxes, they cannot
do so. This “choice” is somehow less worthy of constitu-
tional protection.

Petitioners had an absolute right to be involved as
parties in the underlying action and appeal. Any remedy
the Kansas Supreme Court fashioned would impact
petitioners. App. 83-84. Petitioners were entitled to be
involved to defend their interests and make their constitu-
tional claims.

The Kansas Supreme Court’s refusal to permit peti-
tioners’ intervention to assert this federal question under
the unique circumstances in this case, therefore, deprived
petitioners of due process because it foreclosed petitioners’
access to the courts. See Intl Union, United Automobile,
Aerospace & Agricultural Implement Workers v. Scofield,
382 U.S. 205, 215-216 (1965). Although the Kansas Su-
preme Court did not permit petitioners to be parties to the
appeal, they normally would be bound by the Kansas
Supreme Court’s adverse judgment and decrees. Devlin v.
Scardetti, 536 U.S. 1 (2002) (stating that non-named class
members, like petitioners, who have objected at the earliest
opportunity after first learning of the class representative's
adverse positions on behalf of the class have the power to
bring an appeal without first intervening); Brotherhood of
R.R. Trainmen v. Baltimore & O.R. Co., 331 U.S. 519, 524
(1947) (intervention is of right if petitioner is legally bound
by the decision and adversely affected by it “there being no
other way in which he can better assert the particular

17

interest which warrants intervention.... [A]nd since
petitioner cannot appeal from any subsequent order or
judgment in the proceeding unless he does intervene, the
order denying intervention has the degree of definitiveness
which supports an appeal....”); Missouri-Kansas Pipe
Line Co. v. United States, 312 U.S. 502, 508 (1941) (“[O]ur
jurisdiction to consider an appeal from an order denying
intervention thus depends upon the nature of the right. If
the right is absolute, then the order is appealable, and we
may judge it on its merits.”).

A related constitutional question, therefore, is: Are
petitioners bound by the Kansas Supreme Court’s ruling
that: “[While] there may be nothing in the constitution
that prevents the legislature from allowing school districts
to raise additional funds for enhancements. ... At least to
the extent that funding remains constitutionally equal-
ized, local assessments for this purpose may be permissi-
ble.... [Until then, however] such assessments are
not acceptable?” Thus, the Court seems to regard local
taxation to be “unacceptable” unless, or until, the legisla-
ture first funds a “constitutionally adequate education.”
App. 69. “That should preexist the local tax initiatives.”
App. 69.

In this extraordinary ruling, the Court, in effect,
admits the local funding provisions are constitutional, “we
fully acknowledge ... there may be nothing in the consti-
tution that prevents-the legislature from allowing school
districts to raise additional funds... .” App. 69. However,
even though they are constitutional, the court still prohib-
its them as “unacceptable” because the court believes such
self-help would be “disequalizing.” App. 7, 63. If petitioners
are bound by this, tk. are entitled to appeal the judg-
ment.

18

The Kansas Supreme Court never defined what
comprises a constitutionally adequate base education,
however. App. 31-34. As Justice Rosen stated in his con-
curring opinion, “ ... the decisions in this case demon-
strate that the model for a constitutionally adequate
education has not been a stationary, definable concept.”
App. 34. It is a “moving target.” App. 33. Therefore, peti-
tioners’ fundamental federal right to increase the funds
available for the education of their children is in limbo,
effectively held hostage by the Kansas Supreme Court,
pending an undetermined definition of an adequate base
level of education. App. 31.

While petitioners are seeking relief in federal court,
any lower federal court might require petitioners to
exhaust all of their administrative remedies, including an
appeal to this Court, before seeking relief there. As a
practical matter, the Court’s ruling already did and likely
will again chill future legislation to expand local funding
provisions or remove the cap entirely. App. 24.

The Court’s Decisions already induced the legislature
to adopt preferential treatment for other school children’s
needs, not based on any objective or neutral criterion but,
instead, based upon improper classifications of race, national
origin, and learning disabilities. App. 19, 84-85, 88. Plaintiffs’
entire case at trial and on appeal was premised on the
“achievement gap” between minority, bilingual, and
special education children versus Caucasian students.
App. 19, 84-85, 88. The remedy the Kansas Supreme Court
ordered was intended to correct this “achievement gap” by
forcing the state to reallocate more state aid to those
school districts with a higher proportion of these catego-
ries of students. App. 19, 84-85, 88. Thus, the funding
scheme devised by the legislature, at the direction of the
Court, involved a kind of reverse discrimination.

19

In contrast, a suspect-class neutral remedy would not
have ordered additional funding to those districts having
higher proportions of minority, bilingual, or special educa-
tion children, but instead would have ordered additional
funding according to objective and race-neutral perform-
ance-based criterion which would be directed at the
problem — non-proficiency on standardized tests, not the
color of a child’s skin. In this way, all children scoring
below the proficiency level would receive equal treatment.
Alternatively, ordering sufficient funding for smaller class
sizes in those districts lacking small average class sizes
similarly would have been a race-neutral remedy propor-
tionate to solving the alleged wrong.

B. This case involves an important question of
federal law that has not been, but should be, de-
cided by this Court with respect to the constitu-
tional limits on a state court’s adjudication of the
constitutionality of a state’s school finance
scheme under that state’s constitution because if
left undisturbed, the Kansas Supreme Court’s de-
cisions disrupt the balance of power within our
federalist system and interfere with the constitu-
tion’s preservation of individual liberties.

The legal battle regarding the adequacy of and equity
in funding K-12 public education is raging across the
country in state courts with conflicting results.” App. 25-
26. This battle involves claims by state legislators that the
court is usurping its authority to make policy in public
school finance. This battle is particularly intense in

* The Validity of Public School Funding Systems, 110 A.L.R. 5th
293 (2006 Supp. ).

20

Kansas. Many in the Kansas legislature have proposed
constitutional amendments to limit judicial authority or
want to require elections of judges in the future.’

Thus, the Montoy decisions pose a constitutional
crisis. By ignoring common law restrictions on its equita-
ble power, the Court engaged in arbitrary adjudication. As
in Honda Motor Co. v. Oberg, 512 U.S. 415 (1994), where
this Court struck down a highest state court’s interpreta-
tion of the state constitutional amendment on Fourteenth
Amendment procedural due process grounds because of
the state’s utter disregard of common law limitations on
remedial discretion, so here too, the Kansas Supreme
Court’s opinions and orders fail to comply with the tradi-
tional common law equitable doctrine limiting a state
court’s remedial discretion to the least obtrusive means to
democratic governance to remedy the constitutional
wrong. This absent procedure would “provide protection
against arbitrary and inaccurate adjudication.”

The equitable common law doctrine restrieting a
judicial remedial decree to the least restrictive means to
remedy the alleged constitutional wrong would not have
permitted the Kansas Supreme Court to stay or condition
local funding, a means not causally related to the court’s
alleged end. Local funding is not harmful to the plaintiff
school districts and is beneficial to other school districts
that need additional funding for public education to
achieve per pupil expenditures comparable to those
enjoyed by a majority of other school districts in the state.

” See, e.g., “Judicial Rulings Raise Ire,” 8/24/06, N.E. Johnson County
Sun, Vol. 56, No.34, p. 1A, 7A; “Penalty Right for Nuss,” 8/24/06, N.E.
Johnson County Sun, Vol. 56, No.34, p. 7A; www.sunpublications.com.

21

App. 24. Conditioning local funding on the state first
funding an undefined base level of education indefinitely
suspends petitioners’ liberty and property rights. It is,
therefore, an excessive and arbitrary remedy. The Federal
Constitution requires a more narrow tailoring of the
Kansas Supreme Court’s remedial decrees to comport with
the Fourteenth Amendment Due Process Guarantee.

Unhike the situation in Pruneyard Shopping Center v.
Robins, 447 U.S. 74 (1980), where this Court held that a
state court can interpret a state constitution’s first
amendment more broadly than the federal equivalent and
thereby augment free speech rights beyond what the
Federa! Constitution would protect, the state constitu-
tional provision at issue here does not protect such nega-
tive rights, i.e., individual liberties. Rather, Article 6 § 6, of
the Kansas Constitution involves a governmental benefit,
i.e., public education.

Since the Kansas Supreme Court’s interpretation of
the Education Article unduly impinges on petitioners’
federal liberty and property rights, it contravenes the
First and Fourteenth Amendments. As this Court in
Pruneyard stated, “Our reasoning ... does not .. . limit [a
state’s] sovereign right to adopt in its own Constitution
individual liberties more expansive than those conferred
by the Federal Constitution so long as [they do not]
contravene any other federal constitutional provision.” /d.
at 81 (citing Village of Euclid v. Amber Realty Co., 272
U.S. 365 (1926); Young v. American Mini Theatres, Inc.,
427 U.S. 50 (1976) (emphasis added)).

Thus, this case involves issues of vast national impor-
tance regarding preserving the balance of power within
our federalist system of government — a balance of power

22

designed to secure individual liberty. These issues are too
vital to this nation to allow the Kansas Supreme Court
Decisions to go unchallenged.

As Justice Kennedy forewarned:

This assertion of judicial power in one of the
most sensitive of policy areas, that involving
taxation, [for public education] begins a process
that over time could threaten fundamental a!-
teration of the form of government our constitu-
tion embodies. Missouri v. Jenkins (Jenkins I),
495 U.S. 33, 81. (Emphasis added.)

When this Court talks about a court’s remedial au-
thority being exercised in such a way that “over time [the
exercise of such power] could threaten fundamental
alteration of the form of government our constitution
embodies,” then fundamental freedoms protected by the
Fourteenth Amendment’s Due Process Guarantee are at
stake.

In the end, petitioners ask very little. They recognize
their civic duty to help fund other school districts located
in less property-rich areas and willingly hand over their
taxes for this purpose. They also enthusiastically support
state funding for those districts, which, like petitioners,
lack the necessary learning conditions proven to correlate
with higher test scores, i.e., small class sizes. However,
what is intolerable is the state’s concerted effort to arbi-
trarily, unjustifiably, and unreasonably restrict their
ability to voluntarily tax themselves to pay for additional
teachers to reduce class sizes — a benefit which the state
provides to others but intentionally withholds from peti-
tioners.

23

Absent the requested constitutional protection,
Kansas succeeds in outlawing excellence and making a
mockery of equality. :

XI. CONCLUSION

For the reasons stated above, the Court should grant
certiorari.

Respectfully submitted,

TRISTAN L. DUNCAN ,

(Counsel of Record)

SHOOK, HARDY & BACON L.L.P.-
2555 Grand Blvd.

Kansas City, Missouri 64108-2613
Telephone: (816) 559-2040
Facsimile: (816) 421-5547
Attorneys for Petitioners

App. 1

SUPREME COURT ORDER
DISTRICT CASE NO. 99C1738 S

IN THE SUPREME COURT
OF THE STATE OF KANSAS

DANIEL D CRABTREE

STINSON MORRISON HECKER LLP
12 CORPORATE WOODS SUITE 550
10975 BENSON

OVERLAND PARK KS 66210

CASE NO. 04-92032-S

RYAN MONTOY, ET AL.,
APPELLEES/CROSS-APPELLANTS,

V.

THE STATE OF KANSAS, ET AL.,
APPELLANTS/CROSS-APPELLEES.

YOU ARE HEREBY NOTIFIED OF THE FOLLOW-
ING ACTION TAKEN BY THE COURT: MOTION TO
INTERVENE BY INDIVIDUAL STUDENTS AT USD
#512 AND USD 229. DENIED. RESPONSE NOTED.

DATE: 06/15/2006.

CAROL G. GREEN
CLERK

App. 2

IN THE SUPREME COURT OF
THE STATE OF KANSAS

No. 92,032
RYAN MONTOY, et ai.,
Appellees /Cross-appellants,
V.
STATE OF KANSAS, et al.,
Appellants /Cross-appellees.

Appeal from Shawnee district court; TERRY L. BUL-
LOCK, judge. Opinion filed July 28, 2006. Appeal dis-
missed and remanded with directions.

Alok Ahuja, of Lathrop & Gage L.C., of Overland Park,
and Stephen R. McAllister, special assistant attorney
general, argued the cause, and Jeffrey R. King, of Lathrop
& Gage L.C., of Overland Park, David W. Davies, assistant
attorney general, and Phill Kline, attorney general, were
with Alok Ahuja on the briefs for appellant/cross-appellee
State of Kansas.

Dan Biles, of Gates, Biles, Shields & Ryan, P.A., of Over-
land Park, argued the cause, and Rodney J. Bieker, of
Kansas Department of Education, was with him on the
briefs for appellants/cross-appellees Janet Waugh, Sue
Gamble, John Bacon, Bill Wagnon, Connie Morris, Kathy
Martin, Kenneth Willard, Carol Rupe, Iris Van Meter,
Steve Abrams, and Bob Corkins.

Alan L. Rupe, of Kutak Rock LLP, of Wichita, argued the
cause, and Richard A. Olmstead, of the same firm, and
John S. Robb, of Somers Robb & Robb, of Newton, were
with him on the brief for appellees/cross-appellants.

App. 3

Patricia E. Baker and David C. Cunningham, of Kansas
Association of School Boards, of Topeka, were on the brief
for amicus curiae Kansas Association of School Boards.

Lara M. Owens and Mark R. Thompson, of Seigfreid,
Bingham, Levy, Selzer & Gee, P.C., of Kansas City, Mis-
souri, were on the brief for amicus curiae Kansas Families
United for Public Education.

David M. Schauner and Robert M. Blaufuss, of Kansas
National Education Association, cf Topeka, were on the
brief for amicus curiae Kansas National Education Asso-
ciation.

Stephen R. McAllister and Todd N. Thompson, of Thomp-
son, Ramsdell & Qualseth, P.A., of Lawrence, were on the
brief for amicus curiae Legislative Coordinating Council.

Bernard T. Giefer, of Giefer Law LLC, of WaKeeney, was on
the brief for amici curiae Unified School District No. 208,
Trego County, Kansas (WaKeeney), et al. (126 other
Kansas schoo] districts).

Bradley R. Finkeldei and Peter C. Curran, of Stevens &
Brand, L.L.P., of Lawrence, were on the brief for amicus
curiae Unified School District No. 229 (Blue Valley School
District).

Thomas R. Powell and Roger M. Theis, of Hinkle Elkouri
Law Firm L.L.C., of Wichita, were on the brief for amicus
curiae Unified School District No. 259, Sedgwick County,
Kansas.

Anne M. Kindling, of Goodell, Stratton, Edmonds &
Palmer, L.L.P., of Topeka, was on the brief for amicus
curiae Unified School District No. 512, Shawnee Mission,
Kansas.

App. 4

Per Curiam: This is the fifth time this case has been before
this court since the district court sua sponte dismissed the
case on November 21, 2001. In that initial appeal by the
plaintiffs, we reversed the district court and remanded the
case for further proceedings in Montoy v. State, 275 Kan.
145, 62 P.3d 228 (2003) (Montoy J). On remand, the district
court held that the Kansas School District Finance and
Quality Performance Act (SDFQPA), K.S.A. 72-6405 et
seq., was unconstitutional. The defendants appealed, and
on January 3, 2005, this court affirmed the district court
in part, concluding that the legislature had failed to make
suitable provision for the finance of the public schools as
required by Article 6, §6 of the Kansas Constitution.
Montoy v. State, 278 Kan. 769, 120 P.3d 306 (2005)
(Montoy II). We stayed the issuance of the mandate to
allow the legislature a reasonable time to correct the
constitutional infirmity in the school finance formula and
set a deadline of April 12, 2005, for that to be accom-
plished.

Although we held that increased funding would be re-
quired, we did not dictate the manner in which the legisla-
ture should amend the financing formula to bring it into
constitutional compliance, noting, as did the district court,
that “there are ‘literally hundreds of ways’ the financing
formula can be altered to comply with Art. 6, § 6.” 278
Kan. at 775. However, we did make it clear that the actual
costs of providing a constitutionally suitable education and
the equity with which the funds are distributed are critical
factors for the legislature to consider in crafting a suitable
formula for financing public education. 278 Kan. at 775.

The legislature responded by enacting changes to the
school finance formula on March 30, 2005. (2005 H.B. 2247
[L. 2005, ch. 152}, modified by 2005 S.B. 43 [L. 2005, ch.

App. 5

194] [collectively referred to as H.B. 2247].) See Montoy v.
State, 279 Kan. 817, 819, 112 P.3d 923 (2005) (Montoy II).
H.B. 2247 provided a funding increase of approximately
$142 million for the 2005-06 school year.

The changes made by H.B. 2247 included modifications to
the weighting components of the finance formula and
changes to the authority of certain districts to raise
revenue through local ad valorem property taxes. H.B.
2247 modified the funding formula by increasing the Base
State Aid Per Pupil (BSAPP), bilingual, and at-risk
weightings; phasing in increases in special education
funding; eliminating the correlation weighting (while
retaining the low enrollment weighting); and providing for
annual adjustments to general state aid funding levels in
accordance with the Consumer Price Index-Urban (CPI-
U).

With respect to local revenue generating provisions, H.B.
2247 provided for incremental increases in the 25 percent
cap on local option budgets (LOB) over the following 3
years to 30 percent in the 2007-08 school year; authorized
districts with high housing costs to levy a “cost-of-living”
ad valorem tax to*pay enhanced teacher salaries; and
authorized districts with extraordinary declining enroll-
ment to apply to the Board of Tax Appeals (BOTA) for
permission to levy an additional ad valorem tax.

H.B. 2247 also provided for a cost study to be performed by
the Legislative Division of Post Audit to “‘determine the
costs of delivering the kindergarten and grades one
through 12 curriculum, related services and other pro-
grams mandated by state statute in accredited schools.’”
279 Kan. at 821.

App. 6

After the new legislation became law, this court issued an
order to show cause directing the parties to address
whether the amendments to the financing formula met the
legislature’s constitutional obligation to “‘make suitable
provision for financing’” of the public schools. 279 Kan. at
820. The parties were directed to address whether the
actual costs of providing a suitable education were consid-
ered with respect to each component of the formula, as
well as the formula as a whole, “and whether H.B. 2247
exacerbates and/or creates funding disparities among the
districts.” 279 Kan. at 820.

After an expedited briefing and argument schedule, on
June 3, 2005, this court held that the changes made by
H.B. 2247 failed to bring the state’s school financing
formula into compliance with Article 6, § 6 of the Kansas
Constitution. 279 Kan. at 840. This court considered each
component of the formula, the new local ad valorem tax
authorizations, and the overall funding provided by the
changes as a whole and held that although H.B. 2247
provided a significant funding increase, it still failed to
provide constitutionally suitable funding for public educa-
tion because the changes were not based on considerations
of the actual costs of providing a constitutionally adequate
education and exacerbated existing funding inequities. 279
Kan. at 839-40.

Specifically, this court found that the increases in the
BSAPP, at-risk weighting, bilingual weighting, and special
education funding all varied substantially from the cost
information in the record, and that the State had failed to
provide any cost basis to support the amount of funding
provided. 279 Kan. at 831-33, 839. Further, this court
noted that the low enrollment weighting was not altered,
and although we had specifically sought cost justifications

App. 7

for this significant funding component, none was provided.
279 Kan. at 836.

Moreover, this court found certain components of the
amended formula exacerbated unjustified inequities in the
distribution of funding. For example, we found that the
funding disparity caused by the low enrollment weighting
was exacerbated by the elimination of the correlation
weighting for middle-sized and large districts. By rolling
those funds into the BSAPP, low enrollment districts were
given “even more of the funds that previously were de-
voted to balancing the disparities in per pupil funding
caused by the low-enrollment weighting.” 279 Kan. at 836.

We also found that “H.B. 2247’s increased dependence on
local property taxes, as decided by each school district,
exacerbate(d] disparities based on district wealth.” 279
Kan. at 839.

We held that the new cost-of-living property tax provision
was not based on any evidence that there was any link
between high housing costs and higher education costs or
that the 17 districts that would benefit from the provision
pay higher teacher salaries. We noted that the evidence at
trial demonstrated the opposite — that the districts with
high-poverty, high at-risk student populations are the ones
that need help attracting and retaining teachers. 279 Kan.
at 835.

This court also held that H.B. 2247’s two extraordinary
declining enrollment provisions were potentially “ex-
tremely disequalizing because they are unlimited and
have been designed to benefit a very small number of

school districts.” 279 Kan. at 838.

App. 8

With respect to the increase in the LOB cap, this court
found that the failure to provide for equalizing state aid
for the new level of LOB authority worsened wealth-based
disparities between districts, because districts with high
assessed property values can generate maximum LOB
revenues with far less tax effort than districts with lower
assessed property values and median family incomes. 279
Kan. at 834.

Moreover, this court found it significant that H.B. 2247 did
not attempt to correct the problem identified in Montoy II,
namely, that unconstitutional underfunding has forced
some districts to “use the LOB to fund the State’s obliga-
tion to provide a constitutionally adequate education
rather than enhancements,” as the LOB was originally
intended. 279 Kan. at 834.

This court also concluded that the Legislative Division of
Post Audit (LPA) cost study provided for by H.B. 2247 was
insufficient to determine the actual and necessary costs of
providing a constitutionally suitable education because it
would examine only the cost of “inputs” — the curriculum,
programs, and related services required by law, and would
not consider the costs of “outputs” — the cost of achieving
measurable standards of proficiency. 279 Kan. at 842-43.
Accordingly, the court required the cost study to incorpo-
rate the costs of outputs in addition to the statutorily
mandated elements of a K-12 education. 279 Kan. at 343.

Because time was running out for school districts to prepare
for the 2005-06 school year, there was no evidence of the
actual costs of a suitable education other than the Augen-
blick & Myers (A&M) study, and the litigation had been
pending since 1999, this court accepted the A&M study “as
a valid basis to determine the cost of a constitutionally

App. 9

adequate public education” and ordered the legislature to
implement for the 2005-06 school year a minimum funding
increase of $285 million above the 2004-05 funding level,
which included the $142 million provided by H.B. 2247.
279 Kan. at 844-45. The $285 million increase represented
one-third of the $853 million estimated cost of implement-
ing A&M’s recommendations.

Deferring to the cost study analysis to be performed by
LPA, this court held that implementation of the remaining
two-thirds of the A&M recommendation would be contin-
gent upon the results of the LPA study. However, absent
compliance, this court stated we would consider ordering
an increase in funding of the remaining $568 million for
the 2006-07 school year, in addition to other remedies. 279
Kan. at 846.

This court also ordered a stay on the increased LOB cap,
the cost-of-living weighting, and both extraordinary
declining enrollment provisions, due to their potential to
exacerbate inequities in funding. 279 Kan. at 846. We
retained jurisdiction, stating that further action, if neces-
sary “will be taken by this court as is deemed advisable to
ensure compliance with this opinion.” 279 Kan. at 847.

The governor then called the legislature into special
session. See Governor’s Proclamation of June 9, 2005. By
July 2, 2005, the legislature had failed to comply with this
court's June 3, 2005, opinion, so we issued an order direct-
ing the parties to appear on July 8, 2005, and show cause
“why this Court should not enter an ORDER enjoining the
expenditure and distribution of any funds for the opera-
tion of Kansas schools pending the Legislature’s compli-
ance with this Court’s June ruling regarding minimum

App. 10

funding increases for the 2005-06 school year.” Montoy,
Order of July 2, 2005.

Thereafter, on July 6, 2005, thetegislature enacted S.B. 3
(L. 2005 Special Session, ch. 2), which provided a funding

increase of $147 million over the $142 million provided by
H.B. 2247.

With respect to the various components of the formula,
S.B. 3 increased the BSAPP by another $35 to $4,257;
increased the at-risk weighting from .145 to .193; in-
creased funding for special education by raising the excess
cost reimbursement from 88 percent in 2006-07 to 92
percent; lowered the enrollment cut-off for the low enroll-
ment weighting from 1,725 students to 1,662; restored the
correlation weighting with a threshold of 1,622 students;
eliminated the cap on LOB equalizing supplemental state
aid and increased access to LOB equalization for districts
with lower property valuations by raising the AVPP
entitlement from the 75th percentile to the 81.2 percentile;
replaced the extraordinary declining enrollment (EDE)-
BOTA provision with a similar declining enrollment
provision that applies more broadly to any district with a
decline in enrollment from the previous year; and provided
for matching state aid for districts with lower property
valuations.

S.B. 3 also amended the cost study provision to require the
LPA to conduct two cost studies: One would study the cost
of inputs, and the other would estimate the cost of meeting
student performance outcome standards adopted by the
State Board of Education (Board). See K.S.A. 2005 Supp.
46-1131.

The parties appeared before the court on July 8, 2005. The
issue before the court at the July 8 proceeding was

App. 11

whether the new legislation complied with this court’s
June 3, 2005, order for a minimum funding increase. At
that hearing, all parties agreed that S.B. 3 complied with
the court’s June 3, 2005, order.

On July 8, 2005, this court held: “The legislature, by
enacting S.B. 3, has complied with our June 3 opinion
regarding the minimum funding increase” for the 2005-06
school year, and we approved the school finance formula,
as amended by H.B. 2247 and S.B. 3, “for interim pur-
poses.” Montoy, Order of July 8, 2005. Further, because
S.B. 3 increased LOB equalization and provided increased
access to such equalization, this court lifted the stay on
the provision increasing the LOB authority. Order of July
8, 2005. The stay on the EDE-BOTA provision was lifted
as well, because S.B. 3 replaced it with a new. provision
designed to benefit a larger number of districts. The stays
on the cost-of-living weighting and the EDE-Joint Com-
mittee on State Building Construction (JCSBC) provisions,
however, were continued.

This court retained jurisdiction “to review further legisla-
tive action which may modify, repeal, or make permanent
the temporary solution contained in S.B. 3.” Order of July
8, 2005.

On January 9, 2006, LPA completed and submitted to the
legislature the cost study report commissioned by H.B.
2247/S.B. 3. As pointed out by the State in its argument
before this court, the legislature referred to this report
throughout its 2006 session and sought further input and
explanation from LPA during the session.

Thereafter, the legislature enacted changes to the school
finance formula in S. B. 549 (L. 2006, ch. 197), which was
signed by the governor on May 19, 2006.

App. 12

The plaintiffs then filed a motion for a show cause order
and briefing schedule, and on May 22, 2006, this court
ordered the parties to brief and argue the issue whether
S.B. 549 satisfies our court’s prior orders.

Rather than modifying the provisions of S.B. 3/H.B. 2247,
the legislature materially and fundamentally changed the
way K-12 is funded in this state.

S.B. 549 adopted a 3-year funding scheme for K-12. It also
alters the formula components by creating two additional
at-risk weightings: the high-density at-risk weighting
which provides additional at-risk funding for districts with
high percentages of at-risk students; and the nonproficient
at-risk weighting, which provides $10 million in additional
funding in 2006-07 for students who are not proficient in
reading or math, but are not classified as at-risk (eligible
for the federal free lunch program).

An additional fundamental change occurred in providing
flexibility to local districts to spend money received for at-
risk, preschool at-risk, and bilingual education programs
interchangeably. More significant are the changes that
S.B. 549 made in the LOB.

The school finance formula provided a feature designed to
equalize the ability of districts with lower property wealth
to raise money through the use of the LOB. The formula
was designed so that districts with an assessed valuation
per pupil (AVPP) below the 75th percentile would receive
supplemental aid in an amount designed to bring them up
to par with the district at the 75th percentile of AVPP.
Under this formula, districts with an AVPP above the 75th
percentile would not receive supplemental state aid.
K.S.A. 72-6434.

App. 13

The legislature has increased equalization in two ways.
First, it increased the LOB equalization threshold from
the 75th percentile to the 81.2 percentile of AVPP. K.S.A.
2005 Supp. 72-6434(a). Accordingly, districts with an
assessed valuation per pupil below the 81.2 percentile
would receive supplemental aid on the LOBs in an amount
designed to bring those districts up to par with the dis-
tricts at the 81.2 percentile of AVPP.

Second, the 25 percent LOB cap on supplemental general
state aid was eliminated. See S.B. 3, sec. 12 (b). In S.B.
549, the LOB authority was increased to 30 percent for the
2006-07 school year and 31 percent for 2007-08 and
thereafter. An election would be required to adopt an LOB
in excess of 31 percent. S.B. 549 did not change the AVPP
threshold and did not impose a limit on equalization
supplemental aid.

S.B. 549 further requires that such supplemental state aid
be used to meet accreditation requirements, provide
programs required by law, and improve student perform-
ance. §.B. 549, sec. 20(e)(1). The 3-year cumulative total of
such aid under S.B. 549 is $74 million. Added to H.B.
22471S.B. 3’s increase of $47.7 million, the estimated
increase since Montoy IJ is $121.7 million.

Under the prior structure, LOB state aid funding has
never been considered part of the foundation level of
funding provided by the State for a district’s basic operat-
ing expenses. However, S.B. 549 now requires that sup-
plemental state aid be applied to meet basic educational
requirements, essentially making LOB state aid part of
the foundation level of funding.

Further, the original intent and purpose of the LOB
(which would necessarily include LOB state aid) was to

App. 14

allow individual districts to fuhd enhancements to a
constitutionally adequate education provided and financed
by the funding formula. Montoy III, 279 Kan. at 834 (citing
Montoy II, 278 Kan. at 774). S.B. 549, however, now
provides that school districts are required to use LOB
state aid moneys to fund basic educational expenses.

The plaintiffs point out that these changes to the LOB
state aid do not provide new money and are nothing more
than a “money renaming scheme.” Regardless of whether
LOB state aid is new money, the point is that these
changes to the equalizing state aid provisions of the LOB
component of the formula fundamentally alter the struc-
ture of the funding system.

In addition, S.B. 549 increases the BSAPP from $4,257 to
$4,316 in 2006-07; to $4,374 in 2007-08; and to $4,433 in
2008-09. That amounts to an increase of $101.25 million
over the 3 years, and $183.75 million since January 3,
2005. The low enrollment weighting adjustment was
lowered to 1,637 pupils in 2006-07 and 1,622 pupils in
2007-08 and 2008-09: The high enrollment weighting
(formerly the correlation weighting) threshold was lowered
to correspond to the changes in the low enrollment weight-
ing, resulting in $18.5 million over the 3-year period.

At-risk weighting was increased to 0.278 for 2006-07,
0.378 for 2007-08, and 0.456 for 2008-09, resulting in an
estimated 3-year cumulative increase of $152.55 million.
The 3-year total for high-density at-risk is $29.6 million.
Bilingual weighting remained unchanged at .395 (based
upon the number of student contact hours in a bilingual
program). Special education excess costs reimbursement is
set at 92 percent, totaling an estimated $80.3 million over
3 years, and $111.5 million since January 3, 2005. S.B. 549

App. 15

provides an estimated total funding increase of $466.2
million. The total increase in funding since January 3,
2005, is an estimated $755.6 million.

S.B. 549 leaves intact the cost-of-living weighting, which is
a new local property tax levy intended to allow districts
with higher regional costs to raise additional revenue,
purportedly to fund higher teacher salaries, although the
requirement that funds be used for that purpose was
removed from the statute. See 279 Kan. at 835. While we
stayed the effect of this provision last year due to concerns
about wealth-based disparities, nevertheless, this new
component alters the funding formula.

We begin our analysis by addressing the State’s first
argument that (1) the school finance formula challenged
by the plaintiffs no longer exists, and thus, the case is
moot, and (2) this court cannot engage in the fact finding
necessary to determine the constitutionality of S.B. 549.
The first argument was raised in Montoy III, and we
rejected it because this case was and continues to be in the
remedial stages, or to be more precise, the compliance
stage. It continues to have no merit, and we again reject it.

As to the State’s second part of the argument, we agree
that this court is an appellate court and not a fact-finding
court. The constitutionality of S.B. 549 is not before this
court. It is new legislation and, if challenged, its constitu-
tionality must be litigated in a new action filed in the
district court. We have already made the determination
that the school finance formula which was before this
court in Montoy II was unconstitutional. The school
finance system we review today is not the system we
reviewed in Montoy II or Montoy III. The sole issue now
before this court is whether the legislation passed in 2005

App. 16

and S.B. 549 comply with the previous orders of this court.
If they do then our inquiry ends and this case must be
dismissed. A constitutional challenge of S.B. 549 must wait
for another day.

The State argues alternatively that the legislature has
been highly responsive to the court’s orders in enacting the
2005 legislation and S.B. 549 and, therefore, the appeal
should be dismissed. It points out that the 2005 legislation
and S.B. 549 together provide annual increased funding by
the 2008-09 school year of $755.6 million over that pro-
vided in 2004-05. The State further asserts the manner in
which the funds are to be distributed is directly responsive
to the concerns expressed by the court in its prior orders
regarding at-risk students, special education students, and
middle- and large-sized districts. The State also urges the
court to lift the stay on the cost-of-living weighting.

Although noting it has some concerns with S.B. 549, the
State Board of Education contends that S.B. 549, in
conjunction with the changes made by the 2005 legisla-
tion, makes “suitable provision for finance” of the public
schools as required by Article 6, § 6 of the Kansas Consti-
tution, as construed by this court, and requests the court
to release jurisdiction of the case.

The plaintiffs contend that S.B. 549 fails to comply with
this court’s prior orders and fails to make suitable provi-
sion for finance of the public schools as required by Article
6, §6 of the Kansas Constitution. The plaintiffs contend
the funding increases and formula components of S.B. 549
are not based on the actual and necessary costs of provid-
ing a suitable system of finance of public education and do
not distribute funding equitably, exacerbating existing
constitutional deficiencies.

App. 17

Specifically, the plaintiffs contend that S.B. 549’s funding
for the 2006-07 school year is not based on actual and
necessary costs because the funding it provides under the
components of the formula is significantly less than the
funding increase LPA concluded to be the actual and
necessary costs of meeting the mandated performance
standards for 2006-07. As a remedy, the plaintiffs request
that we order the legislature to implement the LPA Cost
Study Analysis outcomes based recommendations for the
2006-07 school year.

The State contends that in determining whether S.B. 549
complies with this court’s orders, it would be inappropriate
for the court to rely on the LPA Cost Study Analysis as
evidence of actual costs because it is not part of the record
on appeal, and the validity of its conclusions have not been
subjected to expert analysis and judicially determined
through operation of the fact-finding process.

The plaintiffs contend the LPA Cost Study Analysis is part
of the legislative history of S.B. 549 and, therefore, may
properly be considered by the court. They argue that this
court may accept the LPA Cost Study Analysis as substan-
tial competent evidence of the actual and necessary costs
of achieving the State Board’s mandated proficiency
standards because it was designed and funded by the
legislature, performed by its employees, subject to its
direction, and presented to the legislature.

First, we reject the State’s contention that we may not
consider the LPA Cost Study Analysis in determining
whether the legislature complied with our orders. Al-
though the LPA Cost Study Analysis is not evidence in the
record on appeal, it is part of the legislative history of S.B.
549. Cf, Urban Renewal Agency v. Decker, 197 Kan. 157,

App. 18

160, 415 P.2d 373 (1966) (historical background, legislative
proceedings, and changes in a statute during course of
enactment may be considered by the court in determining
legislative intent).

The LPA Cost Study Analysis was commissioned by the
legislature in order to assist in determining the actual
costs of providing a suitable funding system. The legisla-
ture dictated the parameters of the study, the study was
conducted by its employees, subject to the legislature’s
direction and oversight, the study was presented to the
legislature early in the 2006 session, and there was an
ongoing dialogue between the legislature and LPA con-
cerning the study during the course of the legislative
session. See Memorandum of April 21, 2006 from LPA to
all legislators. See also K.S.A. 2005 Supp. 46-1131 (com-
missioning LPA to conduct the Cost Study Analysis,
setting the parameters of the study, and directing LPA to
submit its report to the legislature by a date certain or
request additional time); K.S.A. 46-1101 (legislative post
audit committee comprised of five -senators and five
members of the house of representatives); K.S.A. 46-1102
(LPA headed by the post auditor, who is appointed by the
legislative post audit committee); and K.S.A. 46-1103
(establishing LPA, and providing that its employees are
under the direct supervision of the post auditor in accor-
dance with the policies adopted by the legislative post
audit committee).

Accordingly, we may consider the LPA cost study as part of
the legislative history of S.B. 549 in determining legisla-
tive intent as it is relevant to the question whether the
legislature has complied with our orders in this case. That
does not mean, however, that we may consider the findings
and conclusions in the report as substantial competent

App. 19

evidence of the actual and necessary costs of providing a
suitable education.

The cost study has not been subjected to the fact-finding
processes of litigation through which the parties were
permitted to examine the validity and accuracy of the
study, including the methodology and policy decisions
supporting the study, the qualifications of the persons
participating in the study, the assumptions underlying the
study's conclusions, and the veracity of the underlying
data. Although such inquiry is vital to determining the
validity of the study’s conclusions and the degree of weight
to accord the study if offered at trial in the district court,
this is an extraordinary appeal and the legislature had the
opportunity to analyze the methodology and policy deci-
sions of the LPA Cost Study Analysis, and thus to accept or
reject its findings as a factor in determining what is
suitable finance for the Kansas school system.

There is no question that the legislature has substantially
responded to our concerns that the funding formula failed
to provide adequate funding for students in middle-sized
and large districts with a high proportion of minority
and/or at-risk and special education students and that the
special education, bilingual, and at-risk student weighting
factors were distorted by the lack of any actual cost basis.

S.B. 549 and the 2005 amendments together provide an
estimated annual increased funding by the 2008-09 school
year of $755.6 million over that provided in 2004-05. Of
that total, $246 million — almost one-third — is directed to
at-risk students: $206.5 million in new funding by 2008-09
has been provided through increases in the at-risk weight-
ing from .10 to .456 by 2008-09; $29.6 million in additional
at-risk funding is directed to districts with high percentages

App. 20

of at-risk students; and $10 million is provided to students
who, though not classified as “at-risk” under the free lunch
eligibility criteria, nevertheless are not proficient in math
or reading, based on statewide proficiency assessments.

Bilingual funding has been increased from .2 to .395,
adding $11 million in new funding as of 2005-06. Further,
and significantly, the new legislation provides districts
with the ability to use at-risk and bilingual funding
interchangeably, giving districts with these students
greater flexibility to use those funds to meet their needs.

Special education excess cost reimbursement has been
increased from 85 percent at the time of Montoy II to 92
percent, and provides by 2008-09 an additional $111.5
million in new funding.

The legislature also responded to our concerns about the
equitable distribution of funding. Equity does not require
the legislature to provide equal funding for each student
or school district. In Montoy II, we rejected the plaintiffs’
claim that the school finance act violated the Equal
Protection Clause of the United States and Kansas Consti-
tutions. What is required is an equitable and fair distribu-
tion of the funding to provide an opportunity for every
student to obtain a suitable education.

Our concerns about the low enrollment weighting were
addressed by reducing its relative significance in the
funding formula by increasing funding to middle- and
large-sized districts with high percentages of special needs
students. The legislature has substantially increased the
at-risk weighting, including the new high-density weight-
ing designed to provide additional funding to middle- and
large-sized districts with high percentages of at-risk
students. S.B. 549 and the 2005 amendments together

App. 21

have provided non-low enrollment districts with an addi-
tional $47 million in new funding through the high en-
rollment weighting (formerly the correlation weighting),
while reducing entitlement to the low enrollment weight-
ing by lowering the cut-off from to 1,725 pupils to 1,622 by
2007-08. In addition, we note that by restoring and in-
creasing the high enrollment weighting, the legislature
was directly responsive to our concern in Montoy III that
the elimination of the correlation weighting exacerbated
the disparities caused by the low enrollment weighting.

Further, the legislature responded to our concerns about
wealth-based disparities inherent in the LOB by increas-
ing the equalizing LOB state aid AVPP percentile.

Our prior orders have made it clear that we were con-
cerned that the then existing financing formula was
distorted and provided disparate funding because it was
based on former spending levels with little or no consid-
eration of the actual costs and present funding needs of
Kansas public education.

The legislature has responded to this concern. The legisla-
ture has undertaken the responsibility to consider actual
costs in providing a suitable system of school finance by
commissioning the LPA to conduct an extensive cost study,
creating the 2010 Commission to conduct extensive moni-
toring and oversight of the school finance system, and
creating the School District Audit Team within LPA to
conduct annual performance audits and monitor school
district funding as directed by the 2010 Commission. In
addition, the new legislation contains numerous provisions
designed to improve reporting of costs, expenditures, and
needs.

App. 22

These new components provide the fundamental frame-
work for a cost-based funding scheme in which the legisla-
ture will be regularly provided with the relevant, accurate
information necessary to meet its constitutional obligation
to provide and maintain a suitable system of financing of
Kansas public schools.

We also find that the LPA Cost Study Analysis was consid-
ered by the legislature in making the decisions that
underlie the formula changes in S.B. 549 and, thus, the
legislature was responsive to our prior orders to consider
actual costs. We note the plaintiffs’ contention that be-
cause S.B. 549 does not provide funding at the levels
recommended by LPA’s cost study, it was not based on
actual costs and, therefore, fails to provide constitutionally
suitable funding. However, implicit in that argument is
the conclusion that the LPA Cost Study Analysis is credi-
ble evidence of the actual costs of education. As discussed
above, we cannot reach that conclusion.

Nonetheless, as we stated in Montoy II: “It is clear in-
creased funding will be required; however, increased
funding may not in and of itself make the financing
formula constitutionally suitable.” 728 Kan. 775. Further,
in Montoy III we said:

“As set forth earlier in this opinion, the Legislative Divi-
sion of Post Audit has been commissioned to conduct a
comprehensive and extensive cost study to be presented to
the 2005-06 legislature. With such additional information
available, the legislature should be provided with the cost
information necessary to make policy choices establishing
a suitable system of financing of Kansas public schools.

“We conclude, however, that additional funding must be
made available for the 2005-06 school year to assist in

App. 23

meeting the school districts’ immediate needs. We are
mindful of the Board’s argument that there are limits on
the amount the system can absorb efficiently and effec-
tively at this point in the budget process.” 279 Kan. at 845.

The legislature is not bound to adopt, as suitable funding,
the “actual costs” as determined by the A&M and LPA
studies. On the other hand, the legislature cannot ignore
the LPA study as it did the A&M study. In commissioning
the cost study, the legislature clearly stated in H.B. 2247,
Section 3:

“‘(a) In order to assist the legislature in the gathering of
information which is necessary for the legislature’s consid-
eration when meeting its constitutional duties to: (1)
Provide for intellectual, educational, vocational and
scientific improvement in public schools established and
maintained by the state; and (2) make suitable provision
for the finance of educational interests of the state, the
division of post audit shall conduct a professional cost
study analysis to determine the costs of delivering the
kindergarten and grades one through 12 curriculum,
related services and other programs mandated by state
statute in accredited schools.’” 279 Kan. at 840-41.

We are mindful of the fact that the funding of public
education is extraordinarily complex, just as we are
mindful of the realities of the legislative process. We
conclude that the legislature’s efforts in 2005 and in 2006
S.B. 549 constitute substantial compliance with our prior
orders, through which it will have provided by 2008-09 at
least 755.6 million additional dollars to the education of

the State’s most precious asset — our children.

App. 24

The determination that the funding system failed to
provide for suitable funding of the public schools as re-
quired by Article 6, § 6 of the Kansas Constitution was the
culmination of an extensive 8-day bench trial of this case
before the district court, with testimony generating over
1300 pages of transcripts, and over 300 exhibits consisting
of thousands of pages, a large number of which were
spreadsheets and other documents showing the financial
operation and impact of the funding formula for school
districts statewide. All of this evidence pertained to the
issue at hand — whether the school funding formula as it
existed at that particular time was constitutional, Our
opinion affirming the district court’s determination on that
issue was made on the basis of that extensive record.

As previously noted, in response to our orders, the legisla-
ture has amended the school finance formula three times.
The most recent changes made in S.B. 549 have now so
fundamentally altered the school funding formula that the
school finance formula that was at issue in this case no
longer exists. It has been replaced with a fundamentally
different funding scheme for which there are no facts and
figures in the record from which we could determine how
it will operate over the next 3 years.

We recognize that we could remand this case to the district
court to allow the plaintiffs to amend their pleading to
challenge the new funding formula. However, we decline to
do so, electing instead to end this litigation. We do so for
two reasons.

First, we note the point made by the Chief Justice of the
Ohio Supreme Court in DeRolph v. State:

App. 25

“A review of sixteen other state Supreme Court decisions
that have declared their systems for funding public educa-
tion unconstitutional reveals that a majority of those
decisions remanded the case to a trial court. However, it is
those states that have had the most difficulty producing a
final plan that met the Supreme Court’s opinion of consti-
tutionality. For example, in New Jersey the issue has been
through the courts for a period of twenty years and is now
again pending in the New Jersey Supreme Court. Similar
experiences, though not as dramatic, have occurred in
Arizona, Arkansas, California, New Hampshire and Texas.
In each of these states, either the final public school
funding plan is not yet approved by the Supreme Court of
the state after several years of litigation after remand or
the plan has been approved only after several years of
litigation.” DeRolph v. State, 78 Ohio St. 3d 419, 421-422,
678 N.E.2d 886, 888 (Ohio 1997) (Moyer, C.J., concurring
in part and dissenting in part) (disagreeing with the
majority's decision to remand the case to the district court
pending legislative compliance so the trial court could hear
evidence concerning the remedy after it is enacted and
determine any new legislation’s constitutionality).

See also Abbott v. Burke, 119 N.J. 287, 575 A.2d 359 (1990)
(Abbott IT) (Public School Education Act held unconstitu-
tional); Abbott v. Burke, 136 N.J. 444, 643 A.2d 575 (1994)
(Abbott III) (court ordered legislature to enact constitu-
tional system and retained jurisdiction); Abbott v. Burke,
149 N.J. 145, 199-200, 693 A.2d 417 (1997) (Abbott IV)
(thereafter, court ordered interim increased funding and
remanded the case to district court for hearings on the
special needs of urban students and to determine the costs
of funding those needs); Abbott by Abbott v. Burke, 153
N.J. 480, 710 A.2d 450 (1998) (Abbott V) (on appeal from

App. 26

district court decision after extensive hearings, court
ordered specific, detailed, comprehensive reform plan);
DeRolph v. State, 78 Ohio St. 3d 193, 213, 677 N.E.2d 733
(1997) (DeRolph I) (remanded to district court pending
legislative compliance); DeRolph v. State, 89 Ohio St. 3d 1,
36-38, 728 N.E.2d 993 (2000) (DeRolph IT) (on appeal after
extensive proceedings in trial court, court allowed the
State more time to continue to refine system, set out areas
of concern to address, and retained jurisdiction).

Second, S.B. 549 is a 3-year plan; thus, it may take some
time before the full financial impact of this new legislation
is known, a factor which would be important in any
consideration of whether it provides constitutionally
suitable funding. Indeed, as the Board’s attorney pointed
out at oral argument, we do not even know at this time
how districts used the funding increase provided by the
2005 amendments.

The previous orders of this court affirming the judgment of
the district court in part and reversing in part are reaf-
firmed in this opinion. We lift the stays imposed on the
cost-of-living weighting and the extraordinary declining
enrollment-Joint Committee on State Building Construc-
tion Provision. We dismiss this appeal and remand to the
district court with directions to dismiss the pending case.

NUSS, J., not participating.

ROSEN J., concurring: Every child in Kansas has a
fundamental right to an education guaranteed by the
Kansas Constitution. I, therefore, agree with the concur-
rences to Montoy v. State, 278 Kan. 769, 120 P.3d 306
(2005) (Montoy ID), previously filed by Justices Beier,
Davis, and Luckert. In addition to their thorough constitu-
tional analysis, I note that every child is mandated to

App. 27

attend school. K.S.A. 2005 Supp. 72-1111. Our legislature
has required all Kansans with control over or charge of a
child to send that child to school. K.S.A. 2005 Supp. 72-
1111. This requirement upon parents and guardians for
the compulsory education of their children is paralleled by
the requirement upon the legislature to provide that same
constitutionally mandated education. Likewise, the citi-
zens of Kansas through our state constitution have im-
posed a duty on the legislature to “make suitable provision
for finance of the educational interests of the state.” Kan.
Const., Art. 6, § 6(b). It is our duty, as the arbiters and
champions of the Kansas Constitution, to enforce each
child’s fundamental right to an education. Any analysis of
the issues in this case must necessarily begin with an
understanding of this right and the duties associated with
that right.

Further, I concur with the majority’s conclusion that S.B.
549 (L. 2006, ch. 187) complies with this court’s prior
orders and order to dismiss this case. I write separately to
express my disagreement with the majority's analysis for
concluding that S.B. 549 complies with this court’s prior
orders; to express my concern with including equalizing
local option budget (LOB) state aid as part of the State’s
funding obligation; and to note my disagreement with the
dissent remanding this case to the district court.

I disagree with the majority's analysis for concluding that
S.B. 549 (L. 2006, ch. 197) complies with this court’s prior
orders. Although the majority opinion highlights the in-
crease in funding for various categories of students, the
analysis provides no linkage between those increases and
the actual costs as determined by the Division of Legislative
Post Audit (LPA) study or the Augenblick & Myers (A&M)
study. I recognize that the legislature has appropriated

App. 28

substantially more money to the State’s school system.
However, this court did not simply order the legislature to
appropriate substantially more money.

In Montoy II, this court required the legislature to con-
sider the “(1) actual costs of providing a constitutionally
adequate education and (2) funding equity” to fulfill its
constitutional duty for making a “suitable provision for
finance of the educational interests of the state.” 278 Kan.
at 775. The Montoy III court further ordered that the cost
study commissioned by the legislature to be performed by
the LPA incorporate consideration of the costs of outputs
in addition to inputs. 279 Kan. at 843.

LPA completed a study in January 2006, estimating the
costs for providing an education based on four different
models, including three inputs-based models, distin-
guished by class size, and one outputs (or outcomes)-based
model. Although the results of the LPA study may be
considered as part of the legislative history for determin-
ing legislative intent, I agree with the majority's analysis
that we cannot consider the study as evidence because it
has not been subjected to the fact-finding process of
litigation. Nevertheless, the completion of the LPA cost
study substantially complies with our order in Montoy III.

According to the LPA study, the costs of educating Kansas
children using an outcomes-based model requires an
additional $399 million in state funding for the 2006-07
school year. The legislature thereafter enacted S.B. 549,
which provides a 3-year plan for increasing school funding
by approximately $466.2 million. In the first year of the
plan, 2006-07, the legislature increased school funding by
$194.5 million. In the second year of the plan, 2007-08, the

App. 29

increase is $149 million, and in the third year of the plan,
2008-09, the increase is another $122.7 million.

The plaintiffs argue that the legislature has fallen well
short of the $399 million in additional funding necessary
to meet the outcomes-based model costs for the 2006-07
school year. The State and the Kansas Board of Education
(Board), on the other hand, argue that 5.B. 549 substan-
tially complies with this court’s order to consider the
actual costs of education because it was based on the
results of LPA’s cost study. To support their argument, the
State and the Board assert that the overall state funding
provided for 2006-07 will exceed the $399 million increase
recommended in the LPA study. However, their argument
depends on the inclusion of equalizing LOB state aid as
part of the State’s funding obligation in accordance with
section 20 of S.B. 549. Because LPA did not include equal-
izing LOB state aid as part of the State’s funding for basic
operating costs when it calculated the amount of increased
funding needed for the outcomes-based education model,
the State and the Board argue that the $399 million figure
must be reduced by the amount of equalizing LOB state
aid.

According to the State and the Board, in 2005-06, the
State provided $222 million in equalizing LOB state aid.
The State argues that after deducting the $222 million
from LPA’s recommended increase of $399 million, the
total funding increase would be reduced to approximately
$180 million. Because S.B. 549 provides $194.5 million in
new funding for the 2006-07 school year, the State and the
Board assert that the legislature has exceeded LPA’s
recommended funding increase.

App. 30

Upon closer scrutiny of the State’s figures, it appears the
State’s calculation fails to account for approximately $38
million. This is because LPA’s $399 million figure does not
include the approximately $38 million in additional
equalizing LOB state aid that would be required if LPA’s
funding recommendation were adopted. The new funding
provided by S.B. 549, however, does include that $38
million increase. Nevertheless, this discrepancy is not
significant enough to alter my analysis. If LPA’s $399
million figure is adjusted to include an additional $38
million in increased LOB state aid funding, and $222
million is deducted from that, LPA’s recommendation, as
adjusted, would be $215 million.

When that figure is compared with the $194.5 million
funding increase provided by S.B. 549 for 2006-07, there is
substantial compliance with LPA’s recommended funding
increase for the outcomes-based model. Accordingly, I
conclude that the State has substantially complied with
this court’s order to consider the “actual costs of providing
a constitutionally adequate education.” Montoy III, 279
Kan. at 830.

In addition to requiring the State to consider the actual
costs for providing a constitutional education, this court
required the funding to be equitably distributed. Montoy
II, 278 Kan. at 775. I find that the legislature has been
responsive to our order to provide for equitable distribu-
tion of funding in two significant ways. Our equity con-
cerns included disparate funding between the low
enrollment districts and the middle- and large-sized
districts with high percentages of special needs students. I
agree with the majority that the significant increases in
funding directed to the middle- and large-sized districts
has reduced the relative significance of the low enrollment

App. 31

weighting in the formula. The legislature has also re-
sponded to our concerns about LOB inequities due to
property value disparities by raising the assessed valua-
tion per pupil (AVPP) from the 75th percentile to the 81.2
percentile for equalizing LOB state aid. K.S.A. 2005 Supp.
72-6434(a).

However, I have some concern with the new provisions of
S.B. 549 that include equalizing LOB state aid as part of
the State’s funding toward meeting its constitutional
requirement to suitably fund public education. My concern
centers on the fact that in order to receive LOB state aid,
districts have to impose a local property tax levy by
enacting an LOB. Essentially, the State is arguing that
- allowing local districts to levy property taxes as a condi-
tion for receiving equalizing LOB state aid is synonymous
with providing state funding. However, because the LOB is
optional and some school boards or taxpayers may reject a
local tax to support their school district, children in
districts in which base level funding is inadequate and in
which an LOB is not adopted, or is not adopted at the full
cap, may not have the funds necessary for a constitution-
ally adequate education. In other words, if equalizing LOB
state aid would be necessary to fund a district’s basic
educational costs, and a district or its voters choose not to
adopt LOB funding in full or in part, the legislature has
not met its constitutional duty to those children in that
district. Counting equalizing LOB state aid as part of the
State’s foundation funding in essence shifts the legisla-
ture’s constitutional responsibility to the local school
districts. While the legislature may constitutionally allow
local districts to choose to provide extras beyond the
minimum constitutionally adequate education, Montoy III,
279 Kan. at 839, it cannot allow districts to choose to fund

App. 32

less. By including equalizing LOB state aid to establish
that S.B. 549 provides adequate funding, the legislature is
essentially making the LOB funding mandatory in those
districts where a constitutionally adequate education is
not provided by base level state funding.

As of 2003, all but four of the Kansas school districts have
epted into the LOB funding, and many were at the maxi-
mum cap as it then existed. Because there is such a high
level of participation in the LOB funding, my concern
about the equalizing LOB state aid does not alter my
conclusion that S.B. 549 substantially complies with our
order to consider actual costs and equitably distribute the
State’s education funding. However, so long as the legisla-
ture allows the LOB to remain an optional funding source
rather than a mandatory one, my concern may be relevant
in any subsequent challenge to the funding formula as
amended by S.B. 549. In the school districts that receive
less than the base level of state funding and which would
have been eligible for equalizing LOB state aid but do not
adopt an LOB at all, or adopt an LOB in an amount lower
than the amount necessary to generate the funding short-
fall, the State is arguably still responsible for providing
constitutionally adequate funding. If other school districts
begin opting out in part or in full of the LOB funding, the
equitable distribution of state funding may be at risk.
Such heavy dependence on a local contribution has histori-
cally caused disparity and equity concerns which have led
to Kansas school finance litigation, including this case. We
must never again allow a funding scheme that makes the
quality of a child’s education a function of his or her
parent’s or neighbors’ wealth.

The inclusion of equalizing LOB state aid in S.B. 549
provides an essential financial log in keeping afloat the

App. 33

raft of adequate funding for the education of Kansas
children. However, if local communities at some future
time decide to remove that log, the delicate raft will have a
difficult time remaining afloat, and, again, the constitu-
tional right of all Kansas children to a suitably funded
education could soon find itself imperiled.

I further note my disagreement with the dissenting
position that this case should be remanded for factfinding.
Although I agree that the LPA study cannot be considered
as evidence, I reject the conclusion that we cannot evalu-
ate the legislature’s compliance with this court’s prior.
orders without remanding the matter. Following the
dissent’s analysis, we could only evaluate the legislature’s
compliance with this court’s prior orders if the legislature
had followed the A&M study because it was the only cost
study in evidence. If this court had intended to require
adherence to the A&M study, it should not have deferred
further consideration pending the completion of the new
cost study, as it did in Montoy III.

In rejecting the dissenting position, it is important to note
that I am not accepting the LPA study as a model for a
constitutionally adequate education. The A&M study
estimated the costs for an educational model based on
certain inputs and outcomes. The LPA study, on the other
hand, estimated the costs for completely different educa-
tional models, either based on inputs or outcomes, but not
a combination of the two. Without evidence and expert
opinions regarding the adequacy of each LPA educational
model, this court cannot conclude that the LPA model
would provide a constitutionally adequate education. If we
were to require such evidence before making a decision, we
would find ourselves trying to hit a moving target unless
each new cost study estimated the costs for exactly the

App. 34
same educational model. However, the decisions in this
ease demonstrate that the model for a constitutionally
adequate education has not been a stationary, definable
concept.

In Montoy I, this court ruled that accreditation standards
may not be an adequate model. 275 Kan. at 155. In Montoy
II, the court reiterated that accreditation standards may
not always be adequate and then relied on the legislature’s
own definition of “suitable education” in K.S.A. 46-1225(e)
(statute authorizing A&M study) to conclude that the
standard was not being met. 278 Kan. at 774-75. In
Montoy III, this court adopted the educational model from
the A&M study as a constitutionally adequate education.
Montoy III, 279 Kan. at 844. However, the Montoy III
court also interjected another educational model by requir-
ing the legislature to estimate the costs for achieving the
outputs as necessary elements of a constitutionally ade-
quate education. The Montoy III court also defined a
constitutionally adequate education in accordance with
K.S.A. 72-6439, the statute that requires the Kansas
Board of Education to adopt an accreditation system based
upon an improvement in performance.

As long as the target model for a constitutionally adequate
education continues to move, the litigation in this case
could continue in perpetuity. Each new cost study based on
a new model would require factual testing at the district
court before this court could determine whether the
amended legislation is constitutional. Such a process
would extend into an indefinite future, and the children of
Kansas need a resolution of this matter now. Therefore,
based on my analysis that the legislature has substan-
tially complied with this court’s prior orders, I concur with
the result of the majority opinion dismissing this case.

App. 35

BEIER, J., concurring in part and dissenting in part: I
concur with much in the majority's opinion, including its
implicit decision not to interfere with immediate imple-
mentation of 2006 S. B. 549 (L. 2006, ch. 197). Implemen-
tation must proceed, pending further order of this court.
As we have previously observed, time is of the essence.
Kansas school administrators, employees, and students
need to plan for the coming school year and those that
follow, with the assurance that the state funds promised
by the legislature and governor by way of S.B. 549 will
actually be forthcoming.

I respectfully dissent from the majority’ decision to
dismiss this action, leaving for another day in a future
lawsuit the determination of whether S.B. 549 meets the
standard of Article 6, § 6 of the Kansas Constitution. That
issue is alive in this action. Constitutionality has always
been and remains squarely presented. Further, our earlier
opinions and orders in this case consistently and correctly
equated compliance with this court’s directives to adher-
ence to the legislature’s constitutional mandate. I am not
willing to divorce these concepts now. If the State has
demonstrated compliance with our directives, the legisia-
ture has corrected the constitutional deficiencies in the
Kansas design for school finance. The converse would also
be true: If the State has not demonstrated compliance with
our directives, the legislature has not corrected the consti-
tutional deficiencies in the school finance design. Logically
and legally, if we meant what we have said, one cannot be
satisfied without the other.

Reduced to its essence, our June 3, 2005, Supplemental
Opinion had two components. The first dealt with the need
for increased funding in the 2005-06 school year. That
component is moot. The second component dealt with

App. 36

constitutionality of Kansas’ school finance design beyond
the 2005-06 school year. With regard to that component,
we said:

“(If (1) the post audit study is not completed or timely
submitted for the legislature to consider and act upon it
during the 2006 session, (2) the post audit study is judi-
cially or legislatively determined not to be a valid cost
study, or (3) legislation is not enacted which is based upon
actual and necessary costs of providing a suitable system
of finance and which equitably distributes the funding, we
will consider, among other remedies, ordering that, at a
minimum, the remaining two-thirds ($568 million) in
increased funding based upon the [Augenblick and Myers]
(A&M) study be implemented for the 2006-07 school year.”
Montoy v. State, 279 Kan. 817, 846, 112 P.3d 923 (2005).

The problem facing the parties and this court now is that,
on the appellate record before us, we cannot know the
status of (2) or (3) above. The soundness of the methodology
and conclusions of the Legislative Division of Post Audit
(LPA) cost study have not been tested by a typical adver-
sary process. No evidence has been admitted on the ways in
which the members of the legislature considered actual and
necessary costs or equity. Without testimony and documen-
tary evidence in the record to evaluate on these matters,
this court simply cannot conclude the State has carried the
burden placed upon it last year to demonstrate that the
legislature’s actions brought Kansas’ school finance system
into compliance with the state constitution. The appropriate
way to respond is not to throw the plaintiffs out of court. It
is to retain jurisdiction, acknowledge the factual deficien-
cies of the record, and remand to the district court for
further proceedings focused on the constitutionality of the
finance system, as altered by S.B. 549.

App. 37

The district court proceedings could include any necessary
substitution or realignment of parties, amendment of
pleadings, appropriate discovery, and, finally, trial. Such a
trial would, among other things, test the methodology and
conclusions of the LPA study and the soundness of legisla-
tors’ consideration of it in their crafting of S.B. 549. It
would also give us a record on the actual adequacy and
equity effects of S.B. 549, including the redesignation of
local option budget equalization aid, a redesignation never
mentioned by any party in 2005 but upon which the State
now wishes us to rely heavily to dismiss this case. Such a
trial, and the careful study of the district court, also could
illuminate whether a need for further remedial action
persists, and, if so, what form it should take.

There is no question that the legislature has made sub-
stantial efforts to improve the adequacy and equity of our
school finance system. The political realities of the legisla-
tive process make perfection unattainable, and no amount
of money committed to public education will ever solve all
of the problems of Kansas’ urban poor or of its rural
communities losing population. Still, because I am unwill-
ing to graft a “good enough for government work” phrase
onto Article 6, § 6 of our state constitution, I would permit
this case to continue in the district court, where it may be
finally resolved or prepared for further, much better
informed review by myself and my colleagues.

LUCKERT, J., joins in the foregoing concurring and
dissenting opinion.

END

App. 38

IN THE SUPREME COURT OF THE STATE OF KANSAS

No. 92,032

RYAN MONTOY, ez ai.,
Appellees/Cross-appellants,

v.
STATE OF KANSAS, et al.,
Appellants/Cross-appellees.
SUPPLEMENTAL OPINION

Appeal from Shawnee district court; TERRY L. BUL-
LOCK, judge. Supplemental opinion filed June 3, 2005.
2005 House Bill “247 is not in compliance with the Janu-
ary 3, 2005, opinion of this court and fails to remedy the
constitutional infirmities in the Kansas School District
Finance and Quality Performance Act (SDFQPA), K.S.A.
72-6405 et seq., identified in that opinion.

Kenneth L. Weltz, of Lathrop & Gage L.C., of Overland
Park, argued the cause, and Curtis L. Tideman, Alok
Ahuja, and Jeffrey R. King, of the same firm, and David W.
Davies, assistant attorney general, and Phill Kline, attor-
ney general, were with him on the briefs for appel-
lant/cross-appellee State of Kansas.

Dan Biles, of Gates, Biles, Shields & Ryan, PA., of Over-
land Park, argued the cause, and Rodney J. Bieker, of
Kansas Department of Education, and Cheryl Lynn Whe-
lan, of Lawrence, were with him on the briefs for appel-
iants/cross-appellees Janet Waugh, Sue Gamble, John
Bacon, Bill Wagnon, Connie Morris, Kathy Martin, Ken-
neth Willard, Carol Rupe, Iris Van Meter, Steve Abrams,
and Andy Tompkins.

App. 39

Alan L. Rupe, of Kutak Rock LLP, of Wichita, argued the
cause, and Richard A. Olmstead, of the same firm, and
John S. Robb, of Somers Robb & Robb, of Newton, were
with him on the briefs for appellees/cross-appellants.

Wm. Scott Hesse, assistant attorney general, was on the
brief for defendants/cross-appellees Governor Kathleen
Sebelius and State Treasurer Lynn Jenkins.

Jane L. Williams, of Seigfreid, Bingham, Levy, Selzer &
Gee, of Kansas City, Missouri, was on the briefs for amicus
curiae Kansas Families United for Public Education.

Patricia E. Baker and Zachary J.C. Anshutz, of Kansas
Association of School Boards, of Topeka, were on the briefs
for amicus curiae Kansas Association of School Boards.

David M. Schauner and Robert M. Blaufuss, of Kansas
National Education Association, of Topeka, were on the
briefs for amicus curiae Kansas National Education
Association.

Joseph W. Zima, of Topeka Public Schools, was on the brief
for amicus curiae Unified School District No. 501,
Shawnee County, Kansas.

Michael G. Norris and Melissa D. Hillman, of Norris,
Keplinger & Hillman, L.L.C., of Overland Park, were on
the brief for amici curiae Unified School Districts Nos.
233, 229, and 232, Johnson County, Kansas.

Anne M. Kindling, of Goodell, Stratton, Edmonds &
Palmer, L.L.P., of Topeka, was on the briefs for amicus
curiae Unified School District No. 512, Shawnee Mission,
Kansas.

App. 40

Bernard T. Giefer, of Giefer Law LLC, of WaKeeney, was
on the briefs for amici curiae Unified School District No.
208, Trego County, Kansas (WaKeeney), et al. (60 other
Kansas school districts).

Thomas R. Powell and Roger M. Theis, of Hinkle Elkouri
Law Firm L.L.C., of Wichita, were on the briefs for amicus
curiae Unified School District No. 259, Sedgwick County,
Kansas.

Janice L. Mathis, of Rainbow/PUSH Coalition, of Atlanta,
Georgia, was on the brief for amicus curiae Rain-
bow/PUSH Coalition.

Cynthia J. Sheppeard, of Weathers & Riley, of Topeka, was
on the briefs for amicus curiae Kansas Action for Children.

Bob L. Corkins, of Lawrence, was on the brief for amicus
curiae Kansas Taxpayers Network.

Kirk W. Lowry, of Kansas Advocacy & Protective Services,
of Topeka, was on the brief for amicus curiae Kansas
Advocacy & Protective Services.

Martha B. Crow, of Crow, Clothier & Associates, of
Leavenworth, was on the brief for amicus curiae Martha
B. Crow. Dr. Walt Chappell, of Wichita, was on the brief for
amicus curiae Educational Manageme. Consultants.

Tristan L. Duncan and Daniel D. Crabtree, of Stinson
Morrison Hecker L.L.P., of Overland Park, were on the
brief for amici curiae Individual Students in the Shawnee
Mission Unified School District No. 512.

Per Curiam: This case requires us to review recent school
finance legislation to determine whether it complies with
our January 3, 2005, opinion and brings the state’s school

App. 41

financing formula into compliance with Article 6, § 6 of the
Kansas Constitution. We hold that it does not.

FACTS

In our January opinion, this court reversed the dis-
trict court in part and affirmed in part, agreeing that the
legislature had failed to make suitable provision for
finance of the public school system and, thus, had failed to
meet the burden imposed by Article 6, § 6 of the Kansas
Constitution. Montoy v. State, 278 Kan. 769, 102 P.3d 1160
(2005) (Montoy IT). Among other things, we held that the
Kansas School District Finance and Quality Performance
Act (SDFQPA), K.S.A. 72-6405 et seq., as funded, failed to
provide suitable finance for students in middle-sized and
large districts with a high proportion of minority and/or
at-risk arid special education students; some school dis-
tricts were being forced to use local option budgets (LOB)
to finance a constitutionally adequate education, i.e,
suitable education; the SDFQPA was not based upon
actual costs, but rather on former spending levels and
political compromise; and the failure to perform any cost
analysis distorted the low-enrollment, special education,
vocational education, bilingual, and at-risk student
weighting factors.

We further held that among the critical factors for the
legislature to consider in achieving a suitable formula for
financing education were “equity with which the funds are
distributed and the actual costs of education, including
appropriate levels of administrative costs.” We provided
this guidance because “the present financing formula
increases disparities in funding, not based on a cost
analysis, but rather on political and other factors not

App. 42

relevant to education.” We also held that “increased
funding will be required.” Montoy IT, 278 Kan. at 775.

We stayed the issuance of the mandate to allow the legis-
lature a reasonable time to correct the constitutional
infirmity in the then existing financing formula. Rather
than suspend the funding of education, we ordered that.
the present financing formula and funding would remain
in effect until the court took further action, noting: “The
legislature, by its action or lack thereof in the 2005 ses-
sion, will dictate what form our final remedy, if necessary,
will take.” We set a deadline of April 12, 2005. Montoy IJ,
278 Kan. at 776.

The legislature timely responded by enacting 2005 House
Bill 2247 on March 30, 2005, which was modified by 2005
Senate Bill 43, passed during the veto session (collectively
H.B. 2247). The Governor allowed the bill to become law
without her signature, and the new legislation was deliv-
ered to this court.

On April 15, 2005, we issued an order which, among other
things, directed the parties to file briefs addressing
“whether the financing formula, as amended by H.B. 2247,
meets the legislature’s constitutional burden to ‘make
suitable provision for finance’ of the public schools.”

The parties were first directed to address 10 specific
components of the financing formula. With respect to each
of the components, as well as to the formula as a whole,
the parties were asked to address our special concern as to
whether the actual costs of providing a suitable education
was considered and whether H.B. 2247 exacerbates and/or
creates funding disparities among the districts.

App. 43

Second, the parties were asked to address whether addi-
tional fact-finding would be necessary, and, if so, how that
fact-finding should be pursued.

Third, the parties were asked to address what remedial
action should be ordered and on what timetable in the
event the court concludes, without additional fact-finding,
that the financing formula, as amended by H.B. 2247, is
still unconstitutional.

The parties were ordered to appear before this court on
May 11, 2005, to show cause why the court should or
should not find that H.B. 2247 complied with our January
opinion. We recognized that the burden of proof had been
on the plaintiffs to show that the SDFQPA, as it existed at
the time of the filing of the action herein, was constitu-
tionally infirm. We held that because the plaintiffs had
prevailed, the burden of proof had “shifted to the defen-
dants to show that the legislature’s action has resulted in
suitable provision for the financing of education as re-
quired by Article 6, § 6.”

Pursuant to our April order, the defendants, State of
Kansas (State) and the Board of Education members and
Commissioner of Education (Board), filed separate briefs.
The plaintiffs filed a response brief. Ten amici curiae
briefs were filed. Oral arguments were heard by this court
on May 11, 2005.

We must now decide if H.B. 2247 remedies the SDFQPA
infirmities identified in our January opinion and thus
makes suitable provision for financing of education as
mandated by Article 6, § 6 of the Kansas Constitution. To
do that, we first need to identify the changes H.B. 2247
makes in the SDFQPA.

App. 44

H.B. 2247 modifies the school finance system in several
ways. First, it alters the Base State Aid Per Pupil (B
SAPP) and several of the weightings and other factors that
affect the formula. It increases bilingual and at-risk
weightings; it eliminates correlation weighting; it provides
for phased-in increases in funding of special education
excess costs at a statutorily prescribed level; and it pro-
vides for increases in general state aid based on the
Consumer Price Index-Urban (CIP-U). It does not substan-
tively change the low-enrollment weighting provision as

[Text truncated at 120,000 characters. The full text is on the page linked above.]

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386016_1558%3A1. Public record. Not legal advice.
