Full opinion text
MEMORANDUM OPINION LIMBAUGH, District Judge. In 1975, the St. Louis Board of Education entered into a consent decree with plaintiffs who represented the black school children of north St. Louis. The decree “required] [the district] to take affirmative action to [permit] plaintiffs the right to attend non-segregated and nondiscriminatory schools.” As part of the decree, the Board opened ten magnet schools in 1976-77. Though the consent decree itself soon foundered and the defendants City Board and State of Missouri were later found liable for segregating the St. Louis schools, the original magnet schools continued to operate and were joined by others, bringing the total number of magnet programs in the city of St. Louis to 25. Intradistrict magnet schools were established during the phase of litigation when desegregation efforts were limited to the reassignment of city students and staff. As part of the desegregation remedy, the “magnet specialty costs” of those magnets (related to specialized staffing and instructional resources required by the magnet focus) were to be shared equally by City Board and the State of Missouri. The City Board remained responsible for funding the general operations of those magnets. Interdistrict (Settlement Plan) magnet schools, on the other hand, were established with the intent of attracting suburban students to the city, thereby expanding the number of integrated opportunities in city schools while relieving plaintiff class students of the full burden of transportation. Given the primary remedial role the interdistrict magnets were assigned in this case and the extent to which Missouri was judged liable for school segregation in St. Louis, both the District and Appellate courts assigned the full cost of operations and capital improvements of these schools to the State. No programmatic differences exist between intradistrict and interdistrict magnet schools. Rather, the distinction is one of funding and the attendant obligation of the interdistrict magnets to enroll a significant percentage of white suburban students. In Liddell VII, 731 F.2d 1294 (8th Cir. 1984), the Court of Appeals defined the basic features of effective magnet schools: “... individualized teaching, a low pupil-teacher ratio, specialized programs tailored to students’ interests, enriched resources and active recruitment.” Id. at 1311. These characteristics of magnet schools augment the level of educational quality required to reach the AAA rating, the top classification awarded by the Missouri Department of Elementary and Secondary Education (DESE). It was this AAA standard to which the State and City Board were required to return the St. Louis schools as part of their remedial duty to eliminate from the system all vestiges of unconstitutionality. Liddell VII stipulated that “... the Settlement Agreement ... provides for the expansion or replication of existing magnet schools and programs with total enrollment to reach ... twelve to fourteen thousand ... in city magnets.” Id. at 1309-1310. Enrollment increases were to be phased in over four years. (The Settlement Agreement referred to here is the one now commonly referred to as the Voluntary Plan entered into by most of the parties in 1983). In September 1986, the Eighth Circuit directed in Liddell IX, 801 F.2d 278 (8th Cir.1986), that “... 2,000 more students [be accommodated] in interdistrict magnet schools by the opening of the 1987-88 school year and a total of 6,000 students in these magnets by the 1989-90 school year.” Id. at 292. A joint planning effort was required, involving City Board, the State, suburban districts and an “expanded” Magnet Review Committee (MRC). The MRC was to review all magnet school proposals in light of the goal that, by 1988-89, forty percent of white students in interdistrict magnets should be suburban students. All new magnets were to reach this goal within three years, or ... the State may move the district court to have that magnet converted to an intra-district magnet or terminated. The State’s cooperation with the City Board in reaching the enrollment goals shall be considered an important element in deciding to convert or terminate a magnet. Liddell IX at 283. Pursuant to Liddell IX, MRC’s mandate was to review all new and existing proposals for magnet schools and develop proposals for the 2,000 student goal set by the Eighth Circuit. Proposals were filed with the District Court sixty days later. In March 1987, the Court in L(1336)87 rejected the proposals for new magnets, as the “proposals have ... been hastily conceived and consequently contain serious flaws.” The Court directed that MRC develop “... a long-range comprehensive master plan for magnets ...” and that: The plan should achieve at least the following: A. Coordinate programs in all magnets, balancing the number of distinctive programs which have proven effective and attractive to black and white students. B. Articulate program offerings at all grade levels so that magnet students can proceed through the grades and receive a sequential, developmental set of educational experiences. C. Insure that new interdistrict magnet seats are not created by reducing seats in intradistrict magnets. The number of intradistrict seats should be sustained or expanded. D. Make use of available building space requiring a reasonable capital outlay for facility modification and renovation. Use sound buildings made available through enrollment consolidation on sites which provide room for expansion. E. Cluster magnet sites where possible, particularly for offerings with related program specializations, to reduce administrative and transportation costs. [L(1336)87] Subsequently, the Court modified that Order, designating instead a panel of outside experts to develop the comprehensive plan. L(1436)87. The Eighth Circuit in Liddell XII affirmed the decision of the District Court to appoint an outside panel to develop a comprehensive long-range plan for St. Louis magnet schools. The Magnet Panel proceeded to sift through the numerous documents filed in this case regarding magnets. In conjunction with the examination of written documents, panel members visited several current magnets as well as proposed sites. The panel sought input from the local community via written responses to Panel letters, and small group meetings with school representatives, administration representatives, City Board and State officials, attorneys, desegregation committee directors and St. Louis city officials. Community meetings were held with magnet teachers and magnet school parents. Area leaders of business, higher education, cultural institutions and religious groups were contacted. Finally, two public meetings to present the Panel’s proposals were held. On September 14, 1987 the Magnet Panel filed a comprehensive, long-range plan for magnet schools (hereinafter referred to as Original Plan). L(1585)87. After the Original Plan was submitted, various parties and committees filed their responses. (See court docket sheets for complete listing of responses). A hearing was scheduled to begin March 14, 1988. It soon became apparent that the parties could agree on some of the issues raised by the Original Plan, and thereby limit the scope of the hearing. The District Court then directed in L(1741)88 that: ... the Magnet Panel ... convene various parties for the express purpose of identifying areas of agreement and/or areas where the Panel may wish to modify its recommendations to the Court based on an analysis of the responses filed to the magnet plan and discussions of the parties.... In the absence of agreement among the parties and the Magnet Panel, the Panel shall determine if it wishes to reaffirm the comprehensive plan previously submitted or make modifications to its recommendations. As directed, the panel met with designated parties on January 29-30, 1988 for discussions and negotiations. The panel then reported in L(1796)88 that “... because of the considerable differences remaining and the deterioration of some of the agreements after the meeting, the magnet panel must reaffirm its original proposal to the Court.” Various parties continued negotiations in an attempt to reach agreement on the elements of a comprehensive magnet plan. On March 10, the Magnet Panel submitted a revised plan for consideration by interested parties (hereinafter referred to as Plan A). L(1822)88. On March 14, the Court met with interested parties and Dr. Tracy Libros (MRC Executive Director) to review Plan A. Changes to Plan A were presented by Dr. Libros and parties’ concerns were voiced. The hearing was postponed until March 17, 1988 while parties reviewed Plan A’s changes, which were later incorporated into a final revised magnet plan (filed on March 15, 1988), (hereinafter referred to as Plan B). L(1840)88. On March 17, 18, 23 and 24, the Court heard testimony and received evidence regarding the Original Plan and Plan B. The Court then began the task of resolving the magnet schools’ problem. In doing so, the Court has enlisted the aid of its financial advisor, Warren M. Brown, and his associate Jay Moody. They were directed to inspect all of the proposed magnet school sites, review the Zurheide-Hermann Report with respect to certain magnet capital costs and consider budgetary requirements for capital improvements. The Court has carefully reviewed all of the appellate decisions in this case, as well as the District Court’s findings concerning magnet schools (also known simply as “magnets”), the Magnet Panel’s Original Plan and Plan B, the responses of all the parties and committees to those plans, the evidence adduced at the magnet plan(s) hearing, and all other pertinent matters filed in this case regarding magnets. With that review and after conferences with Warren M. Brown and Jay Moody concerning their assignment, the Court is now ready to present a magnet school plan for St. Louis. This comprehensive plan for the magnet schools in St. Louis attempts to achieve several goals: student desegregation; effective education; equity and equality of access; the efficient use of professional and physical resources; and the introduction of an incremental, financially prudent approach to school improvement. 1. Student Desegregation. The Courts have approved both intradistrict and inter-district plans that include magnet schools as a way of providing quality integrated education for black and white students, especially for black city students denied such opportunity in the past. This plan embraces a definition of student desegregation that requires a racially balanced student body in each magnet school. The Magnet Plan’s definition of racial balance considered the following facts: (a) approximately two-thirds of the black students in the city public schools attend segregated schools; (b) the waiting list of black students for magnet schools is substantially longer than that of white students; (c) the public school population in the city of St. Louis is 75 to 80 percent black; (d) all white students in the city public schools attend desegregated schools; and (e) all white students in participating county districts have access to a desegregated education since, according to the Settlement Plan, approximately one-fourth of the students in their districts should be black. These factors seem to justify allocating a slightly higher proportion of magnet seats for black students. 2. Effective Education. Magnet schools are identified in this plan as unique but not elite schools. They should provide a unique education that is available to students of all aptitudes who express interest in a particular theme. As such, these schools should directly benefit the students who enroll, as well as indirectly benefit the entire system in that they indicate ways of achieving effective education that other schools are also capable of achieving. Thus, the staffing and resources available to magnets may differ slightly from those available to other schools, but should not deviate so greatly that other schools could never attempt to emulate the educational methods of magnets. By being inclusive rather than exclusive, magnet schools point the way toward effective education for all. An important component of effective education that this plan embraces is that of continuity. The major magnet themes have schools at the various grade levels of the school system. Also, any student who completes the final grade in a magnet of a specific theme is guaranteed a seat in a magnet school with a similar theme at the next educational level. Thus, the plan achieves continuity and coordination. 3. Equity and Equality of Access. Equity has to do with the distribution of common resources in a way that is fair. As such, equity has to do with the achievement of fairness in a collectivity of people. Equality is concerned with individuals and whether they have access to the use of the common resources. When equity is recognized as a group phenomenon, equity and equality are seen as complementary rather than contradictory. Thus equity and equality, when operating simultaneously, strengthen each other. This plan embraces both equity and equality to yield the strength of their joint effects. 4. Efficient Use of Resources. The Court of Appeals has observed that magnet school facilities should be “reasonably comparable” to county schools, since these schools are expected to draw students from city and county school districts. This plan attempts to balance the needs of magnet schools with financial realities. Most proposed magnet schools are to be located in existing facilities, while a few new buildings are approved. These new buildings will link the St. Louis Public School System to other community resources and institutions. Where possible, magnet schools are located near arterial transportation routes so that they are easily accessible to county and city students. This Plan strives to make the most efficient use of school facilities. 5. Institutional Collaboration. Strong and direct working relationships between magnet schools and local colleges, universities and cultural institutions are important for several reasons. First, such institutions have much to offer the schools in terms of human and physical resources. Second, collaboration between public schools and higher education institutions can be beneficial in a broader sense by providing curriculum development, staff development and teacher training opportunities. Finally, the prestige associated with such institutions can help enhance the image of the public schools in general and the magnet schools in particular. By linking magnet schools directly with respected local institutions, the image of individual city schools and the entire city school system can be enhanced. A related advantage is that these linkages can aid greatly in student recruitment; people who are not familiar with a particular magnet program may very well be familiar with a local institution that is affiliated with the school. This association can increase knowledge about and interest in the magnet. St. Louis is blessed with a large variety of public, private and voluntary associations. It would be a mistake to implement a comprehensive program of magnet schools without taking advantage of these resources. St. Louis is known nationwide for its outstanding cultural institutions. The Science Museum, St. Louis Zoo and the Missouri Botanical Garden offer opportunities for collaboration with magnet schools which would enhance both the schools and the institutions. 6. Long-Range School Improvement. The general public is reluctant to accept wholesale change that requires a substantial, immediate investment of public resources. If the citizens of the city of St. Louis are to invest in a comprehensive school improvement program, they must be convinced that resources will be used prudently and that their investment will result in an effective public school system. This magnet plan promotes incremental change. Progress in the magnet schools can foster greater public confidence in the public schools, resulting in similar benefits for other schools in the system. 7. Unified System of Magnet Schools. Artificial distinctions between intradistrict and interdistrict magnets are eliminated. Such distinctions in practice do nothing to further desegregation. In fact, they probably harm desegregation efforts by creating an unstable situation in which consistent program operations and sound fiscal management are difficult to attain. A new funding arrangement that recognizes magnet schools as a cohesive entity is essential. The new funding formula requires joint responsibility of the local school district and state government for all magnet schools, rather than a separate fractionated responsibility. Under a unified system of magnet schools, all magnet seats are available to all students. The cumbersome and potentially counter-productive practice of basing funding on the proportion of seats occupied by county students, in particular magnet schools, is eliminated making way for a consolidated system of magnet schools. This plan is designed to provide an equitable and unitary system of magnet schools that effectively educates city and county students. The plan is economical, efficient and feasible. Moreover, it provides increased access for all groups of students to a desegregated quality education. The Court’s Magnet Plan is detailed under the following thirteen (13) identified categories: 1. funding; 2. collaborative planning; 3. parental involvement; 4. administration; 5. admission policies; 6. admission priorities; 7. placement; 8. measures of success; 9. magnet themes, magnet locations, magnet targets; 10. capital budget; 11. staffing needs and pupil-teacher ratios; 12. enriched resources; 13. implementation. I. Funding. The current allocation of fiscal responsibility for magnets between the two paying parties is assigned as follows: The State is required to pay 100% of capital and operating costs for 6,000 in-terdistrict seats, 50% of capital costs for 8,000 intradistrict magnet seats, and 50% of magnet specialty costs for 8,000 in-tradistrict magnet seats. The City Board is required to pay 50% of capital costs for 8,000 intradistrict magnet seats, 100% of regular operating costs for 8,000 intradistrict magnet seats, and 50% of magnet specialty costs for 8,000 intradistrict seats. In addressing the issue of magnet school funding, the Court finds that: 1. A single and permanent percentage for capital and operating costs should be assigned to the two paying parties. The relative financial liability has been determined previously by the Courts. The unified funding formula maintains that relative liability. 2. The calculation of the City Board and State share should be based upon the total number and proportion of such seats each is ultimately responsible for funding, i.e., 6,000 interdistrict and 8,000 intradistrict seats. This number and proportion of seats should be funded as seats, regardless of which particular buildings house these seats. The specifics for the operational changes to maintain current levels of fiscal responsibility are detailed as follows: Capital costs. Both City Board and the State have made capital expenditures for magnets. Both have provided funds for some capital improvements for existing intradistrict magnets. The State has provided funds for some capital improvements of existing interdistrict magnets. City Board has provided a capital resource in the form of buildings used as magnets. Substantial capital improvements are still required for existing magnet buildings retained for magnet use in this plan. This plan requires both City Board and the State to contribute to the capital costs for all magnet school seats. State Share: The required 6,000 interdis-trict seats account for 43% of the total of 14,000 seats; the required 8,000 intra-dis-trict seats account for 57% of the total. The State is obligated to fund 100% of capital costs for 43% of magnet seats and 50% of capital costs for 57% of magnet seats. Thus, the State’s share of capital costs can be calculated as follows: (1.00 X .43) + (.50 X .57) = .715 Overall, the State’s capital obligation for magnets is 71.5% of the total capital funds required to;-reach full implementation. Therefore, the State is required to pay 71.5% of all magnet school capital costs approved as necessary for full implementation of this plan. City Board Share: City Board is obligated to fund 0% of capital costs for 43% of magnet seats and 50% of capital costs for 57% of magnet seats. Thus, City Board’s share of capital costs can be calculated as follows: (0.00 X .43) + (.50 X .57) = .285 Overall, City Board’s capital obligation for magnets is 28.5% of the total capital funds required to reach full implementation. Therefore, City Board is required to pay 28.5% of all magnet school capital costs approved as necessary for full implementation of this plan. Operating Costs: The State pays all operating costs (regular and magnet) for interdistrict magnets, while City Board pays the largest proportion of operating costs for intradistrict magnets (all regular and half of magnet costs). If all 14,000 magnet seats were fully implemented, each entity would be paying its designated share of the costs. However, since magnet school implementation has been slower than anticipated, the allocation of operating costs by specific magnet school buildings creates a counterproductive incentive structure and adds yet another layer to the complexities surrounding magnet schools, hampering full and effective implementation. Not only is this incentive structure counterproductive, it does not appear necessary within the parameters established by the courts. The formula for allocating fiscal responsibility for magnets’ operating costs parallels the approach taken to allocating responsibility for capital costs. State Share: For the 6,000 interdistrict seats (43% of the total number of required seats), the State is obligated to fully fund operating costs; that is, 100% of the regular operating costs and 100% of the incremental magnet costs. For the 8,000 intrad-istrict seats (57% of the total number of required seats), the State is obligated to fund 0% of the regular operating costs and 50% of the incremental magnet costs. Thus, for the total regular operating costs of all magnets in a given year, the State’s share can be calculated as follows: Regular operating costs: (1.00 x .43) + (0.00 X .57) = .43 For the total incremental magnet costs of all magnets in a given year, the State’s share of that total can be calculated as follows: Incremental magnet costs: (1.00 X .43) + (.50 X .57) = .715 City Board Share: For the 6,000 inter-district seats (43% of the total number of required seats), City Board is obligated to provide no funds; that is, 0% of the regular operating costs and 0% of the incremental manget costs. For the 8,000 intradistrict seats (57% of the total number of required seats), City Board is obligated to fund 100% of the regular operating costs and 50% of the incremental magnet costs. Thus, for the total regular operating costs of all magnets in a given year, City Board’s share can be calculated as follows: Regular operating costs: (0.00 X .43) + (1.00 X .57) = .57 For the total incremental magnet costs of all magnets in a given year, City Board’s share of that total can be calculated as follows: Incremental magnet costs: (0.00 X .43) + (.50 X .57) = .285 Table 1 summarizes the current relative funding shares of both City Board and State, as described above. A major purpose of the unified funding formula is to achieve administrative efficiency while maintaining the relative funding liability which has been established by the courts. When applying the unified operating cost formula (for both regular and incremental magnet costs) to actual and projected expenditures, the State and City Board will be funding approximately the same percentage of the total. See, L(1934)88, Exhibit B. Therefore, this plan recommends that, in practice, all operating costs (regular and incremental magnet) for all magnet schools be combined. The State and City Board should then divide the total cost, with each party paying 50% of all such costs. This will simplify even further budgetary and administrative procedures. This unified funding formula should be implemented for all magnet school costs in 1989-90. This funding strategy is proposed for several reasons. It should create a structure which will allow for more stable operation of magnets. A more useful incentive structure will be in place to encourage efficient operation of all magnet schools. Both paying parties will be able to accurately project fiscal impact. Operations will be stabilized, leading to more efficient use of resources. Finally, a framework will be in place which can minimize disputes and the resulting necessity of resolving those disputes in Court. II. Collaborative Planning. This plan encourages a strong linkage between magnet schools and community institutions. The panel met with leaders of colleges and universities, major cultural institutions and businesses in the St. Louis community. Many of these institutions expressed enthusiasm about the possibility of working with the district in designing and implementing new magnet schools. Strong and direct working relationships between magnet schools, and local colleges and universities and cultural institutions are important for several reasons. First, such institutions have much to offer the schools in terms of human and physical resources. Second, school-higher education collaborations can be beneficial in a broader sense by providing curriculum development, staff development and teacher training opportunities. Finally, the prestige associated with such institutions can help enhance the image of the public schools in general and the magnet schools in particular. To implement meaningful interaction between schools, higher educational and cultural institutions, planning grants will be made to local institutions that have expressed interest in working with magnet schools in St. Louis. Such grants should be made available immediately to begin planning on-going relationships for the purposes of staff and curriculum development and program implementation. Strategies should also be explored for using magnet schools as laboratory schools for regional teacher training and staff development. This type of planning must involve all key partners with the district in the magnet school process: magnet school faculty and administrators, parents of current or prospective magnet students, suburban district staff, higher education, cultural organizations and business representatives, community leaders and consultants expert in organizational development and in academic fields related to the magnet themes. State representatives must also be involved in the process. Institutions receiving such grants would work directly with the school district, as well as seek broader input into the planning process. In the case of programs where new construction is recommended, the institutions should also assist in defining instructional space needs. Specifically, seven planning grants will be awarded for the following magnets: Gateway High School (1), Gateway elementary and middle schools (1), International Studies high school (1), International Studies middle school (1), Science Center ILC (1), Botanical Garden ILC (1), Early Childhood Centers (1). Each grant should be for approximately $20,000.00 for a total planning grant budget of $140,000.00. The State will provide the funds for these planning grants. The City Board will administer the grants. III. Parental Involvement. Clearly, strong support from parents is essential for magnet programs to reach their full potential. The Magnet Panel recommends that the City Board should consider a successful plan, the “Corner School Development Program” developed by Dr. James Comer at Yale University, which cquld be implemented at each magnet. Although the Court has no opinion as to the merits of the Comer program, the City Board should determine if this or another model is most appropriate to meet the needs of magnet faculties, parents and students, taking into account existing parent involvement programs to avoid duplicative efforts. IV. Administration. There are two critical needs with respect to magnet school implementation and administration. If implementation is to occur quickly and effectively, the district must have more flexibility. This flexibility must, of course, be within the confines established by the courts. However, daily decision-making authority should rest with those directly responsible for implementation of the long-range plan. With greater autonomy and decision-making flexibility for the school district, there must also be greater accountability for implementation. The school district must provide adequate administrative oversight to ensure the timely implementation of a task of this magnitude. The work of implementing this plan will require careful coordination among various departments of the school district: coordination of program design and educational specifications with facilities development; development and clarification of staffing with personnel; and program development and supervision with instruction. Cluster/Management Teams. To ensure system-wide articulation and quality of magnet programs, teams of school building program administrators should coordinate magnet programs within each cluster. These teams should meet regularly, probably monthly. Team meetings may address issues of program delivery; serve as a forum for the exchange of ideas; and address the concerns of parents, teachers and students. The participation of principals is essential and should be mandatory. Staff Assignment for Magnet Schools. Under this plan, some buildings currently used for other purposes will become magnets. In addition, certain magnet programs will be relocated to other sites, in some cases involving a merger of more than one program. This plan recommends that, for all affected programs, all staff positions should be declared open. Staff working in affected programs and buildings should be given first consideration for any position in the new magnet for which they are qualified and wish to apply. Selection of all staff should be based on the principal’s recommendation, subject to applicable statutes and in accordance with district regulations. Recruitment and Public Information. Personnel in charge of recruitment and public information should be responsible for recruitment and placement of St. Louis students in the magnet program, and should implement the admissions policies recommended in this plan. Personal counseling regarding available educational programs should be provided through this office. The counseling and public information services should be constantly monitored to ensure that accurate and timely advice are courteously given. A complaint Hot Line should be installed to accommodate students and parents who have persisting questions that have not been addressed satisfactorily by the counseling and public information services. A Parent Information Center staffed by part-time employees, preferably parents, should be established. The Center should have an outreach function for parents of varying social circumstances who may not be well-informed about magnet schools and who may need assistance in completing application forms. Because magnet schools serve city and county students, the school district and VICC should continue to share in the responsibility for recruitment of students for magnet schools. VICC should continue to be primarily responsible for recruitment of county students; the district should continue to be primarily responsible for recruitment of city students. It is important that recruitment be done jointly and cooperatively so that recruitment activities, application deadlines and placement can be coordinated. Numerous complaints have been voiced about the lack of accurate information provided regarding admission, placement priorities and offerings available in various magnet programs. Therefore, a “Schools of Choice” information book should be developed which includes the following information for each magnet school: • Name and location of each magnet • Grades served • Brief program description • “Indicators of interest/success” description (“You should choose this program if you would like a school where ...”) • List of opportunities that are and are not provided at each school (“This school offers ... This school does not have • ••”) • Feeder pattern information for elementary and middle schools (“When students leave this magnet, they can attend • ••”) • Application dates/placement schedule • Clear statement of placement priorities • Waiting list information • Information on transportation Because this book should be used by both the school district and VICC in recruiting, it should be developed jointly by City Board and VICC with input from the staff of each magnet school. Each City Board and VICC staff member who deals with the public regarding school options should have a copy. In conjunction with the distribution of the “Schools of Choice” book, City Board and VICC should conduct a training session for recipients to review the contents and to stress the importance of courteous and positive attitudes in dealing with the public. The MRC was established to make recommendations regarding the planning and implementation of new magnets established subsequent to Liddell VII and to evaluate the quality of magnet schools. In the past, the MRC has been hampered in the performance of its duties by its membership structure. The parties comprising the MRC membership find it difficult to come to agreement or make reasonable and helpful recommendations to the Court because of adversarial legal positions. The Magnet Panel recommends a new expanded structure for the MRC. The Court disagrees. This Magnet Plan should eliminate many of the conflicts previously thwarting the MRC’s productivity. It is the Court’s considered opinion that the presently constituted MRC can function differently than it has in the past. Under the Magnet Plan (as set forth in this opinion), the MRC can overcome any competing interests and provide helpful information on programmatic issues related to effective magnet school implementation through its designated responsibilities for magnet school education. V. Admission Policies. The current practice of labeling magnet schools as interdistrict or intradis-trict is done primarily for the purpose of assigning fiscal responsibility. However, this labeling practice is not helpful in developing a unitary and coherent system of magnet schools that effectively serves city and county students. Individual students have a wide variety of interests that may not necessarily correspond to the themes of the category of schools in which they are expected to enroll. An analysis of students from the county who are currently enrolled in city magnet schools shows that a higher proportion attend intradistrict magnets than interdistrict magnet schools. This fact indicates that the admissions process already does, and should continue to make any magnet school available to any eligible student regardless of the school’s classification as an interdis-trict or intradistrict magnet school. In conjunction with the elimination of these artificial distinctions between magnets, the Court finds that city and county students should be eligible to enroll in any magnet school where there is congruency between the theme of the school and the interest of the student. Racial Balance. The definition of racial balance for magnet schools will be 55% black/45% white, with an allowable variance of plus or minus five percentage points. The variance will allow for differences between the number of students accepted and those who actually enroll, and to fill vacant seats remaining after a specified date. Entrance Criteria. Except in limited situations, admission to magnet schools will be based solely on interest. Magnet schools are public schools which should serve the full range of students served by all other public schools in the district. For the magnet programs in this plan, there should be no entrance requirements, other than those which apply to non-magnet schools in the district or as otherwise required by law. Handicapped Students. To the maximum extent appropriate, the opportunity should be provided to handicapped children to participate in magnet school programs. This includes participation in regular class settings with the use of supplementary aids and services. Such placements should be made in conformity with provisions set forth in the State Plan for Part B of the Education of the Handicapped Act as amended by Public Law 94-142, and Section 504 of the Rehabilitation Act of 1973. Permanent Assignment. Stu-' dents should not be required to leave a magnet school (except in conjunction with district-wide policies) or to apply for readmission once they have been accepted. A student admitted to a magnet school in any level served by that magnet, including prekindergarten or kindergarten, should have a guaranteed, permanent and continuous assignment until completing the final grade of the course of study in that school. VI. Admission Priorities. Educational Continuity. Continuity of placement will continue to' be guaranteed for the next level of magnet education to students who complete a lower level within the same magnet cluster of schools. Students in elementary or middle magnet schools are automatically accepted before others for a magnet school of the same theme at the next level for the purpose of guaranteeing continuity in education. However, there will be no admissions preference to a magnet middle school or high school for students who matriculated in lower grade level magnet schools with a theme that differs from the school at a higher level. Sibling Priority. Second priority (within racial balance requirements) will be for siblings with similar interests who wish to enroll in the same magnet school where a sibling is already enrolled. There is good reason why parents with two or more children should not be required to relate to several different schools at the same grade level. The priority admission for siblings acknowledges this fact. Additional Priorities for Black Students. After students have been placed in magnets as indicated above, third priority for remaining seats for black students will be for black city students attending non-integrated schools. Fourth priority will be for all other black students residing in the city regardless of school of attendance. Additional Priorities for White Students. After students have been placed in magnets as indicated above, third priority for remaining seats for white students will be for eligible white county students. Fourth priority will be for all other white students residing in the city regardless of school of attendance. Pilot Program. The Court recommends that City Board institute a pilot program at three elementary magnet schools located in integrated neighborhoods, granting an admission priority for a portion of the seats at each school to children residing within the residential area in which the school is located. Racial balance guidelines established for all magnet schools should be applicable at each school within the pilot program, and this priority would not serve to interfere with attaining racial balance at each such school. Priority for students within the residential area should be determined before application of all other admissions priorities except racial balance criteria for the school as a whole, the priority for students within the same magnet feeder pattern (where applicable) and the priority for siblings. Priority for students within the residential area should be applicable to 25% of the magnet seats at each pilot school. Seats available on such a basis but not filled as of the date of the magnet school lottery would as of that date be available for students from throughout the city and county in accordance with the regular magnet school admissions procedures. The implementation plan to be prepared by the Board should include recommendations of which schools to include in the pilot program and the description of what shall constitute the appropriate residential area for each school. This portion of the implementation plan should be prepared in consultation with the parties and the affected residential areas. Pilot schools should be selected with a view to stimulating and reinforcing stable residential integration, strong connections between the school and families of children attending it, and the promotion and strengthening of residential revitalization. The implementation schedule should include a timetable for implementation of this priority in the pilot schools. It should be the expectation that pilot programs in existing magnet schools would be fully implemented in the 1989-90 school year, while programs in any new or newly constructed schools would be fully implemented in the first year of operation of the magnet program at each location. This pilot program should be fully publicized in magnet school literature and to families living within the affected areas. The progress and success of the pilot program should be evaluated by the Board, the MRC and the parties with regard to serving the goals of school and residential integration, stability and revitalization and educational effectiveness. Although the Court recommends a neighborhood magnet pilot program, such a program is not a mandatory part of this magnet plan. It is an innovative idea worthy of serious consideration. However, if the City Board should elect to implement this pilot program, the Court insists that it be implemented as outlined above. VII. Placement. Numerous concerns have been expressed about late notification regarding magnet school admission status. Such late notification undermines public confidence and generates animosity, undoing much of the positive feeling that magnet school choices can generate. After the phase-in period, magnet school applications should be processed between January and March of the year prior to matriculation. In order to do this, targets used for placements in any given year should be those most recently approved by the Court as of September 1 of each year. Any changes should go into effect the following year. In any event, the district should have the flexibility to make minor adjustments in targets after this date, particularly as they affect interim targets which may be in place during the phase-in period leading to full implementation. Placement by Lottery. The present first-come, first-served placement of students in magnet schools may, on the surface, seem fair. However, it has become quite obvious that the system of lining up to be an early applicant can be inequitable. Two-parent families (where one can stay home while the other waits in line all night) and those whose jobs allow them greater flexibility have an unfair advantage over others to gain access to magnet school opportunities. Since this plan attempts to eliminate inequities, a lottery system for placement will be implemented. Procedures for the lottery system should be developed jointly by City Board and VICC (since both city and county students will be affected) and submitted jointly to the Court. Once the procedures have been approved, the lottery system should be managed and run by the City Board. VIII. Measures of Success. A critical test of the success of this magnet plan will be its attractiveness to a sufficient number of city and county residents, resulting in the desired racial balance set for each magnet school and the overall impact of this on the desegregation of the city schools. Magnets should not only be initially inviting places that bring about racial balance; they must also be schools that offer strong academic programs. Magnet schools are one component of the metropolitan desegregation plan. So, it is necessary to identify criteria by which it can be determined when this component has been fully and effectively implemented. This magnet plan should be considered to be fully implemented when the following measures of success have been met: 1. Provision for all magnet seats recommended in this plan including enrollment of approximately 14,000 students. 2. Determination that each magnet school has the necessary resources for effective program implementation (including completion of appropriate building renovations and provision of necessary resources). 3. Determination that each magnet school is providing a high quality educational program consistent with its theme. 4. Stable racial balance in each magnet school. 5. A total enrollment (in all magnets) of at least 1,640 white county students. In order to retain the safeguards provided in Liddell IX, 801 F.2d 278, 282 (8th Cir.1986), at least 1,640 county white students must be enrolled in magnets. If not, the State may petition the Court for a change in the unified funding formula or seek termination of any magnet that fails to seek a significant percentage of suburban white students. The State offers 32% county white enrollment in each magnet as the “significant percentage” required by each magnet to continue to operate. See, L(1892)88, p. 6. The Court finds that 12% is a more reasonable county white enrollment per magnet. The Court adopts 12% as the “significant percentage” for Liddell IX purposes regarding termination of a magnet. IX. Magnet Themes, Locations and Target Enrollments. This magnet plan provides for the operation of 27 full-time, self-contained magnet schools. These schools follow the City Board’s three-tiered grade level configuration of high schools, middle schools and elementary schools (including early childhood education centers). The Court was impressed with the Magnet Panel’s recommendations regarding magnet themes feeder patterns and allocation of seats. The recommended programs are either proven successful programs or innovative exciting educational programs designed to acquaint students with areas of study found in post-secondary education and in the work force. The magnet programs and seat allocations provide for feeder patterns allowing full matriculation in the relevant thematic cluster. Additional entry level seats at the beginning of each school level allows for the transfer in of students outside the magnet system. The number of seats in various types of magnets has been carefully allocated throughout the system for both geographic and grade level considerations. The Magnet Panel’s recommended programming and seat allocations provide for a magnet capacity of approximately 14,000 students. 1. Magnet Themes The Court adopts and incorporates into its magnet plan the concepts and principles set forth by the Magnet Panel in its Original Plan, L(1585)87, plus the AÁA magnet recommended in Plan B, regarding magnet themes, programs and feeder patterns. The magnet schools are organized around seven thematic clusters: Early Childhood, Gifted International Studies, Visual and Performing Arts, Math/Science/Technology, General Academic and Military. Within each cluster, the following programs are approved: Early Childhood ECC I ECC II ECC III Gifted CJA — Elementary CJA — Middle International Studies Foreign Language — Elementary Foreign Language — Middle Int’l. Studies — High School Visual and Performing Arts VPA — Elementary I VPA — Elementary II VPA — Middle VPA — High School Math/Science/Technology Science Center/ILC — Elementary Gateway — Elementary Botanical Gardens/ILC — Middle Gateway — Middle Gateway — High School General Academic Montessori — Preschool Montessori — Elementary ABI I — Elementary ABI II — Elementary ABI III — Elementary IGE — Elementary AAA — Middle Metro — High School Military Military — Middle Naval Jr. ROTC — High School The Court approves and adopts as part of its magnet plan the programs created within the Math/Science/Technology cluster, although these programs require construction of three new magnet facilities and the conversion of O’Fallon from vocational education use to magnet use The Science Center and the Gateway Magnets represent cooperative ventures with existing cultural institutions. These programs are designed to meet the needs of students in a sophisticated technological society. O’Fallon will be known as Gateway High School and will build its program around the existing Academy of Math and Science (including its Air Force ROTC unit). Courses in aerospace technology, physical and biological sciences, health careers, computer science, and other high technology programs will be offered. Programs currently at O’Fallon which will remain are: Aviation Maintenance (airframe program) Chemical/Industrial Lab Technology Communication Equiment Repair Community-Based Banking Computer-Based Technology Data Processing Drafting Electronics Occupations Pre-Engineering Possible new vocational courses for Gateway High School would provide an education program in the agricultural sciences: Food Science and Nutrition, Small Animal Management, Horticulture, International Agriculture, and Computers in Agriculture. These programs would emphasize biological, botanical and chemical concepts. The City Board will have governing and full administrative authority over Gateway High School (as well as all other magnets). Gateway will be staffed under the same staffing guidelines as pronounced earlier in this memorandum opinion. Vocational teachers electing to stay at O’Fallon/Gate-way (because course retained) will be City Board employees. Former Special School District (SSD) teachers may elect either to join the City Board’s retirement system or remain in their present retirement system. No former SSD teachers will lose their seniority status or suffer a reduction in pay. 2.Magnet Locations The Court carefully reviewed the Zu-rheide-Hermann site analysis and the site recommendations made in the Magnet Panel’s Original Plan and Plan B. Plan B reflects site location compromises which the Magnet Panel made in response to heated objections by interested parties. The compromises do not represent the best offerings and in some cases conflict with prior court orders. See L(680)86, L(1570)87, L(1436)87 and L(1889)88. The Court approves the Original Plan’s magnet school locations except as follows: 1. The AAA magnet program will be located at Busch, with a target of 300. Hamilton III will be closed and placed in inventory. 2. Soldán High School replaces Northwest High School as the International Studies High School. The target remains at 900. Northwest continues as a noninte-grated high school. Students currently attending Soldán may elect to remain in the magnet program or be reassigned to another high school. 3. Dewey replaces Wilkenson and Madison as the elementary foreign language magnet. The initial target enrollment is 408. The Wilkenson Elementary Foreign Language program has been very successful in attracting large numbers of white county students. It already has outgrown its present site. To expand the target to 360 (as proposed in Plan B) would still not meet potential demand, and the present site is extremely limited in terms of future expansion. To replicate the program at Madison would be extremely costly. Dewey has adequate space for expansion. It will receive a new gymnasium and additional rehabilitation and reconfiguration work. The Court is aware that it is converting a regular integrated middle school. Since most of Dewey’s students are transported, readjustment of attendance areas should reassign current Dewey students to other middle schools with minimal disruption. Madison is closed and returned to inventory. 4. Wilkenson replaces Mason as a preschool center, with a target of 306. Wilk-enson, a small school on a limited site near the Maplewood/St. Louis border, is ideally situated to be a successful early childhood educational center. Current Wilkenson students will be reassigned to either Dewey or DeAndreis magnets. Mason School, whose current program is expanded at Mul-lanphy pursuant to the Magnet Panel’s plan(s), will be closed and assigned to inventory. 5. The Montessori program will be housed in the Washington and Euclid schools. Washington School will house the Montessori elementary program and Euclid school will house the Montessori preschool center. The Euclid Branch Montessori preschool program has already outgrown its facility. After only one year of operation, it has a substantial waiting list. The plant capacity is fully utilized and cannot be expanded. Euclid Branch, now housing the Montessori preschool program, may continue in operation until the Euclid/Washington configuration is functional. Thereafter, it should be returned to inventory; however, the Court will look favorably upon its continued operation in the future if high enrollments warrant it. Since Euclid Branch is functional, the Court would rather return it to operation to house additional students than have a substantial waiting list. Its continued operation would then necessitate a modification of magnet targets. In summary, Humboldt, Hamilton III, Wade, Ames and Euclid Branch are closed pursuant to the Original Plan; Franklin and Longfellow remain closed per L(1570)87; and Mason and Madison are closed pursuant to this order. 3.Magnet Target Enrollments Except where noted by the Court in the previous section on magnet locations, the Court adopts and incorporates the Original Plan’s target enrollments. There will be no “overage” magnets. The magnet locations and target enrollments are outlined in Tables 2 and 3. X. Capital Budget Working with the financial advisor, the Court developed a magnet capital budget for the 27 magnet schools the Court has approved. The data for this budget was derived from the Zurheide-Hermann Report, the Original Plan, Plan B and the Capital Improvements Order, L(1570)87. Budget amounts were extracted as closely as possible from the Original Plan and Plan B budgets, as they applied to the 27 magnets approved. Consequently, the cost bases and standards set forth in L(1570)87 were applied here. The Panel left blank in Plan B, approximately $20 million in cost items to be filled in at a later time. These items included for example computer labs, construction of a new elementary ILC magnet, certain rehabilitation and reconfiguration costs, and furniture and equipment costs. The Court has reviewed these items left blank by the Panel and applied standards previously approved in L(1570)87. Costs for the other new facilities were adequately detailed by the Panel. This approved budget includes the following capital elements: 1) further rehabilitation and reconfiguration of the intradis-trict magnet facilities budgeted in L(1570)87; 2) 3 new buildings plus major additions to two schools; 3) rehabilitation and reconfiguration of interdistrict magnets, contemplated but not budgeted in L(1570)87. Certain adjustments pertaining to costs have been made in order to conform to the Court’s magnet plan. Costs unique to this Plan (e.g. a gym and classroom addition at Dewéy) are included. Costs no longer required due to location changes (e.g. classroom addition at Wilkenson) have been deleted. Costs for schools not included in the Court’s plan have been deleted. Certain amounts have been scaled down pursuant to this Court’s determination that item costs were either inflated or not needed. There is no duplication of items or amounts in L(1570)87 and this magnet capital budget. The court-approved magnet capital budget totals $51,472,626.00. Table 4, Table 5 (and notes), Table 6 and Table 7 detail this budget. This is a separate magnet capital budget to encompass all capital costs required for implementation of the Court’s magnet plan, except for those magnet costs already approved in L(1570)87. The Court now sets forth the funding formula and schedule for payments to provide for the implementation of a magnet capital improvements program in the City of St. Louis: 1) The magnet capital budget is set in the amount of $51,472,626.00, subject to modification by this Court. This magnet capital budget is separate from the capital improvements budget approved in Order L(1570)87. The division of costs for magnet capital, pursuant to the unified funding formula approved herein, is the State— 71.5% and the City Board — 28.5%. Their respective costs are $36,802,928.00 and $14,669,698.00. 2) The City Board is to establish a separate Magnet Capital Account (Account) as an accounting vehicle for administering the magnet capital improvements program. The City Board will place in the fund the respective contributions of the State and the City Board. Monies deposited into the Account shall be invested as provided by State law. Expenditures will be made solely for the purpose of carrying out the rehabilitation, reconfiguration and new construction projects pursuant to this Order. All receipt to and expenditures from the Account shall be reported annually to the Court following a fiscal year independent audit, in accordance with court-approved procedures for desegregation accounting and reporting. The City Board and the State shall share equally the costs of the independent audit. 3) The State shall make three installment payments, each in the amount of $12,267,-642.67. The Department of Elementary and Secondary Education (DESE) shall timely certify to the Commissioner of Administration (Commissioner) the amount needed to make the State’s payments and to whom the payments are to be made. Within two working days after such certification, the Commissioner shall issue warrants in the amounts and to the party set forth in the DESE’s certification. Within two working days of receipt of each of said warrants, the Treasurer of the State of Missouri shall issue and sign checks in the amounts and to the party set forth in said warrants. 4) The State’s first payment of $12,267,-642.00 shall be made 61 days from the date of this order. If an appeal is taken, the State’s first payment shall be made 30 days from the date of affirmance. In the event of reversal, the Court will modify as directed by the Eighth Circuit and will set a new time for payment. After the first payment is made, the second and third payments shall be made annually from the date of the first payment. The State’s one-time funding obligation to share the costs of a magnet capital program for the St. Louis City Schools shall be deemed fulfilled and satisfied upon deposit of its third and last payment. 5) The City Board shall make eight (8) installment payments, each in the amount of $1,750,000.00. A ninth (9th) payment shall be made in the amount of $669,699.00. These payments shall be made annually according to the same schedule as outlined above for the State. Thereafter, the City Board shall continue to deposit annually (until further notice of the Court) the amount of $1,000,000.00 into the Account for continued maintenance and additional capital improvements. Interest on the unused balance of State and City Board payments shall be credited against the capital costs funding obligation of each entity regarding Settlement Plan magnets, or in some other way as the Court may later direct. 6) This Court believes that cash flow should meet construction cost pacing, and that all construction projects (as prescribed by this Order) should be completed within four years from the date of the final order. 7) In the event construction costs become due when the Account’s monies are insufficient to meet these costs because the City Board’s payment is not yet due, the C