The ruling marks a major loss for about half the state's 524 school districts, which sued more than three years ago on claims that Missouri does not direct enough money to public education and doles out the money unfairly.  Alex Bartlett, an attorney for the suing schools, said he will recommend an appeal to the state Supreme Court.

Missouri spent about $2.7 billion in basic aid to schools last year.  It was distributed under a formula that sets a per-pupil spending target, based on the spending levels of schools that got perfect marks on a state performance report.

Experts for the suing schools called for spending anywhere from an additional $480 million to $1.3 billion per year on public schools.  Legislative leaders and Gov. Matt Blunt were concerned the state would have to raise taxes if the judge sided with the schools.

Callahan said he is not convinced the constitution requires any funding beyond its stipulation that at least one-fourth of revenues must be dedicated to schools.  The only issue Callahan left unresolved is whether the state meets the 25-percent threshold. The judge set a hearing for Sept. 20 for additional arguments on exactly what state revenues should be included or excluded in that calculation.

In 1993, one of Callahan's predecessors struck down the state's school funding method, determining among other things that the Missouri Constitution does establish an adequate school funding right beyond the 25-percent requirement.  Callahan noted that decision was never tested on appeal because the Legislature changed the funding formula later that year and raised taxes to pump more money into education.

To the contrary, Callahan wrote, two Supreme Court judges issued a concurring opinion in dismissing that 1993 appeal.  Those two judges asserted appropriations over that 25-percent threshold were within the discretion of the Legislature. Callahan adopted similar reasoning, concluding the constitution says lawmakers "may" -- not "must" -- choose to spend additional money if public school funding is insufficient.

Callahan also rejected claims that the school funding formula violates the equal protection clauses of the state and federal constitutions.  Education is not a fundamental right guaranteed by the U.S. Constitution, he said. The only equality standard for school funding in the state constitution was removed in 1875, Callahan added.

After school districts filed suit challenging Missouri's school funding method in January 2004, the Legislature passed a revised funding method during its session in 2005.   Callahan ruled the funding system adopted by the Legislature "is a reasonable attempt to meet its obligations" under the constitution to maintain a public school system.