The House has approved a proposed new public school funding formula. But disagreements over consolidation and tax issues continue to threaten progress as legislators head toward their seventh week in special session. The funding formula passed the House yesterday on a 78-to-14 vote, with two members voting present. The measure would send two-point-seven (b) billion dollars a year in state funding to Arkansas schools and require 385 (m) million dollars in new revenue. House Speaker Herschel Cleveland says he doubts legislators will finish work before the state Supreme Court hears oral arguments Thursday. The high court is to assess what legislators have done to meet a November 2002 mandate to overhaul Arkansas` public school system and provide 450-thousand students equal access to an adequate education. Legislators won`t meet tomorrow because it`s the Martin Luther King Junior holiday.