Editorial

Time for caution on school district finances

The Cape Girardeau School District has a solid history of being prudent with taxpayers' money.

In fact, it was the community's confidence that prompted a string of supportive votes to finance major renovations and three new schools over just the last few years: Blanchard Elementary School, Cape Girardeau Career and Technology Center and, finally, Central High School.

But now the school board has an important choice to make, and it is one that deserves thoughtful consideration.

The district has been on the edge of serious financial trouble because of state-mandated reserve balances.

The Department of Elementary and Secondary Education considers a school district "financially distressed" if fund balances dip below 3 percent of the total budget.

Last year, to avoid that designation, each Cape Girardeau school established Waste Watcher committees and submitted ideas to save money. They included making sure lights were off when rooms weren't in use and running only full loads in cafeteria dishwashers.

Some of the problem was a cash-strapped state budget that withheld promised money for the career and technology center, but the district wasn't flush even when the money was released.

A terribly expensive year for natural gas and rising insurance costs added to the problem.

This year, the trouble is assessed valuation. It didn't grow the way the district anticipated -- 4 or 5 percent with each reassessment.

In the last couple of weeks, however, there was some good financial news. Thanks to low interest rates, the district learned it could refinance $18 million in bonds sold in 2000. The bonds could be paid off sooner, saving several million dollars.

So the question becomes what -- if anything -- to do with the money that otherwise would have gone for interest payments.

Board members' eyes lit up like silver dollars at the thought of adding a $5 million auditorium onto the showplace Central High School. The auditorium was dropped during construction to keep the cost down.

But it behooves the board to be cautious, particularly right now. The district's foundation has its hand out seeking public donations of $500,000 for items ranging from filing cabinets to sheds at the new Central High.

It sends a conflicting message to ask the public to donate money for a trophy case while gearing up for a $5 million addition.

The board would be wise to follow the advice of its financial expert and address existing financial concerns in the district before embarking on more new construction.

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