Judge denies motion to dismiss school funding suit

A Hamilton County judge has denied a motion by Indiana Gov. Mitch Daniels to dismiss a lawsuit filed by school districts that say Indiana's school funding formula is unfair to growing districts.

Hamilton Superior Court Judge Steven Nation's ruling means the lawsuit can proceed, barring an out-of-court settlement or a successful appeal.

Indiana Attorney General Greg Zoeller said he'll review the state's litigation options. He said only the General Assembly has the power to change the school funding formula and that schools shouldn't use state money to sue the state.

Hamilton Southeastern Schools, Franklin Township Schools and Middlebury Community Schools say the school formula violates the state constitution's requirement for "general and uniform" public education funding because districts get different per-pupil amounts.