TPSB joins lawsuit against state DOE

The Terrebonne Parish School Board has latched onto the St. John the Baptist-led lawsuit against the state of Louisiana over monies they argue should have been derived from a natural hike in the Minimum Foundation Program formula.

Board President Roger “Dale” DeHart recommended the motion, and the board approved it by a 7-1 vote, with member Debi Benoit opposed and member Roosevelt Thomas absent.

The MFP is the public school system’s primary source of state funding. The annual allotment is calculated based upon a prescribed per-pupil amount. Traditionally, the per-pupil amount has grown by 2.75 percent each year, but state budget woes have kept the rate frozen since 2008.

School system leaders have bemoaned the de-facto cuts – though state spending actually increased due to enrollment increases – at a time when the state is also handing down more mandates without the funding to implement them and requiring greater employer contribution rates into state retirement systems.

Now, the participating systems are seizing on a Louisiana Supreme Court ruling that struck down the Legislature’s 2012-13 MFP resolution on procedural grounds. When the court did so, the Department of Education reverted to the 2011-12 MFP resolution, which contained a provision calling for ultimately-unrealized 2.75-percent growth, LSBA President John Smith said. This is what the school boards are challenging.

The suit calls for a $327-per-student hike, which would generate $200 million across the state, according to reports. Even if the school boards win the suit, the state Legislature would have to appropriate the funds.

Last June, state lawmakers injected $69 million in supplemental MFP funding as part of grander negotiations over the 2013-14 budget.

The Louisiana School Boards Association in October encouraged all school boards to participate in the St. John lawsuit. The Lafourche Parish School Board joined the lawsuit earlier this month.

Terrebonne Superintendent Philip Martin said approximately 20 school boards have joined the lawsuit and that LSBA anticipates between 40-50 to ultimately sign on.

TPSB attorney Berwick Duval said the suit has not yet been certified as a class action and that it may be too narrow to qualify as one. Only participating districts would receive the money in the event of a win, he said.

Benoit opposed the measure because she is “not in favor of lawsuits, generally,” and because she doesn’t believe the case is as clear-cut as proponents suggest, she said after the meeting. During discussion, much of which focusing on whether state leaders are trying to intimidate local districts into avoiding the suit, Benoit said the governor has bureaucratically punished dissidents in the past.

Baton Rouge-based Hammonds, Sills, Adkins and Guice are representing the districts in the suit via a contingency-fee contract. Should the school boards win, attorneys would receive 10 percent of any funds awarded, according to the contract.

State law gives local governing bodies the authority to enter contingency-fee contracts with attorneys, who take a predetermined percentage of the winnings if the case goes their way but are otherwise unpaid. The method allows public agencies to pursue cases that would otherwise be cost prohibitive. The state attorney general’s office reviews these contracts to see if the fee is reasonable and whether the contract complies with other laws.

“I think that Hammonds and Sills, they are a reputable law firm. I don’t think that they would be willing to do this for no pay if they (lose the suit) unless they felt it was based on very factual and legal grounds,” Martin said. “Based upon that, I think the board should certainly, as tight as our finances are … I do think we should stand up and pursue that.”