Lawsuit challenges school sales tax

Opponents say extra revenue will give Johnson County unfair advantage over others

Lawrence school board candidate Michael Pomes is rooting for Johnson County’s legal eagles.

If those lawyers can fend off a lawsuit filed Tuesday challenging a sales tax for public schools in Johnson County, Pomes said he promised to press for a similar tax that would pump millions of dollars into cash-strapped districts in Douglas County.

“I’d be interested in seeing how far it gets in the courts,” said Pomes, who is among eight candidates for Lawrence school board.

One of his seven general-election foes, Cindy Yulich, said the magic pill of a sales tax should be ruled illegal. The only people shelling out millions of dollars in new tax revenue for public schools should be members of the Kansas Legislature, she said.

The Johnson County sales tax exacerbates inequities in the state’s school-finance formula, Yulich said.

“The real bottom line is that the state needs to figure out a formula that will adequately fund an equitable, adequate education for all Kansas children,” she said.

Conflict about this issue in Lawrence offers a glimpse of the tough legal battle about to be waged in Johnson County District Court.

On Tuesday, four school districts and 10 parents in Wyandotte County sued to challenge collection of a sales tax for public schools.

Six Johnson County school districts, Johnson County commissioners and State Treasurer Lynn Jenkins were named as defendants.

Plaintiffs want to stop Johnson County schools from receiving $45.2 million during the next three years from a quarter-cent sales tax approved by county voters in August.

Larry McAulay, director of legal services for Johnson County, predicted the tax would withstand the challenges.

“We are confident in the legality of the sales tax as approved by voters,” McAulay said.

Ray Daniels, superintendent of schools in Kansas City, Kan., said the district threw its weight behind the lawsuit because the sales tax placed poor students in Wyandotte County at a competitive disadvantage compared to wealthy students in neighboring Johnson County.

“There will be no way that most school districts in Kansas will be able to compete with the wealthier districts,” he said.

Nearly one-fifth of all Kansas sales tax is generated in Johnson County.

Lawrence Supt. Randy Weseman said the Johnson County sales tax would unravel the state’s 1992 school finance act if allowed to stand.

“The ’92 finance act was put in as a direct result of inequities of public school expenditures across the state,” Weseman said. “Wealthy districts (under the old law) could spend more than non-wealthy districts. I agree with Ray Daniels. This sales tax violates the whole intent of the formula.”

Scott Morgan, Lawrence school board president and a candidate for re-election, said the Lawrence board was wise to not seek a similar sales tax in Douglas County.

The district must build a budget on solid financing instead of legal possibilities, he said.

“I think it points out how inappropriate it would be to rely on something with such questionable legal status to pay teachers,” Morgan said.

Board member Jack Davidson, who isn’t running for another term, said there would be a rush to pass local sales tax increases for public schools if Johnson County prevails in court.

The issue likely will end up in front of the Kansas Supreme Court, he said.

“We don’t know that it’s legal, but if it’s legal, we’ll try it,” said Davidson, who is skeptical of Johnson County’s chance of winning the legal challenge.

Johnson County voters approved the sales tax with 61 percent to 39 percent. Collection of the tax began Jan. 1. The six school districts were scheduled to receive an estimated $14 million in the first year, with Shawnee Mission getting $5.5 million, Olathe $3.8 million and Blue Valley $3.2 million.