The appeals court upheld the school aid formula used in the 1980s in a case where Milwaukee Public Schools sued the state and lost. School officials claimed the formula was unfair to Milwaukee because it didn't provide the district with enough aid. The high court said Tuesday's majority opinion reiterated the position the state Supreme Court took in the 1989 case. David Hase, a Milwaukee lawyer who argued against the funding formula, told the court during February's oral arguments that the state should ensure that all students have equal educational opportunities, not just those living in wealthier communities. The lawsuit said changes made to the formula by the Legislature and the governor, included in the 1995-1997 state budget, violate the equal protection clauses in the U.S. and Wisconsin Constitutions.
Public schools get the bulk of their funding through state aid and local property taxes.
The level of state aid is determined through various formulas. The level of state aid has increased greatly in recent years so that the state pays two-thirds of the overall costs. The state limits what school districts can spend on students, which prevents poor districts from spending more money on education programs to bring them to the level of affluent districts, the school district's attorneys argued. But the high court said revenue limits reduced the risk that school boards would use additional state aids to increase local spending by keeping tax rates as high as they were before instead of lowering property taxes. Three of the justice said they would have sent the case back to Dane County Circuit Court for further study.