Page 35 - The EDGE Winter 2022

CAPITAL FUNDING LITIGATION

BY DON HARRIS
Chris Thomas
Chris Thomas Outlines Capital Funding and Budget Battles

Esteemed school attorney Chris Thomas gave AASBO recommended a statewide assessment to see where all
members an update on the on-going school capital the schools are with regard to state funding.
litigation and another lawsuit challenging the
Legislature’s practice of stuffing unrelated policy “If it weren’t for bonds and overrides,
matter in budget bills.
our facilities would be a mess.”
Thomas’ presentation at an AASBO Bi-Monthly
meeting in November provided a historical look at In the summary judgment issue, the plaintiffs including
the School Capital Financing System litigation, which school groups and four school districts contend the
started in 1994 when the courts decided that the state is again violating the Arizona Constitution, state
Arizona way of funding schools was unconstitutional, funding does not ensure all districts can meet capital
and was revived with a new lawsuit four years ago needs, there is heavy reliance on local bonds and
when the state failed to fund the system designed to overrides, and the system itself is causing disparities.
resolve the original litigation. The latest phase of the
dispute has involved more than 350,000 documents If building renewal was fully funded it would amount
exchanged and 60 witnesses have testified, Thomas to $289 million a year, but even in a good year, Thomas
said. Progress was delayed by the Covid pandemic – said, grants total about $107 million. “Resources for
motions for a summary judgment were filed October new construction are not there,” he said.
22.
Meanwhile, Thomas said, the state’s position is that
“If it weren’t for bonds and overrides, our facilities there is no constitutional violation because it’s all the
would be a mess,” Thomas said, explaining that bonds districts’ fault, money doesn’t matter and you can still
were intended for extras, not basic standards. “Districts teach with shoddy facilities, and federal Covid money
that are able to pass bonds are using the money for cures systemic problems.
essentials. Or they’re hoping to get a building renewal
grant. We don’t think that system is uniform and it’s “We have to tie students’ lack of ability to reach
certainly not equitable for those districts that do not minimum academic state standards to deficiencies in
have those additional resources.” your facilities,” Thomas said.

He said school officials appreciate the District The state will say that schools haven’t proved that
Additional Assistance program, which does provide students aren’t learning at the level guaranteed by
some funding. “The bottom line is $6 billion less state law because facilities are substandard.
in capital funding,” Thomas said. “DAA doesn’t
replace all the capital funding you need. It doesn’t “I’d rather be in the plaintiffs’ position – it’s hard for
cover deficiencies, ongoing maintenance, and it’s not the state to defend that position,” Thomas said, adding
indexed to inflation.” that whoever wins, the other side will likely appeal.

He suggested trying to get the Legislature to index Turning to the budget bills brouhaha, Thomas said the
DAA for inflation in the 2022 session. He also Legislature is mad at K-12 education because school

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