ADMINISTRATORS: PLAN GIVES DAMAGE CONTROL

Administrators in small school districts say Proposition B won't cure the financial problems they face, but could go a long way toward damage control.

With more than $80 million in reductions in basic state aid and funding for other programs already announced for the current school year, top officials of the Missouri Department of Elementary and Secondary Education said last week that school districts are out of options for cutting costs.

In a report to the State Board of Education, Commissioner of Education Robert E. Bartman estimated that as many as 50 of the state's 541 public school districts could be on the brink of insolvency before the end of this school year. A year ago, 16 districts in the state had overall budget deficits.

The outlook may be even worse for next year, especially for districts that have already drained their reserves. If state funding does not increase sharply for the next school year, or if hard-pressed districts cannot win more local tax support, they are likely to make severe cutbacks in 1992-93, education officials have said.

While local school districts are financially solvent, they still face budget troubles.

Kelly Schools at Benton cut $100,000 from its budget prior to the start of school.

The school district cut five teaching positions and no longer offers driver's education or industrial arts, said Superintendent Michael Johnson.

But those cuts were not enough to keep pace with state budget cuts. The recent 3 percent cut announced by the governor to pay for desegregation of the Kansas City School District forced the district to reach into its reserves again.

"Right now, our withholding is $139,000," Johnson said, "For us, that's a lot of money. We can't just sit and take that."

Johnson said that in June "we had a board meeting, sat down and discussed what was facing us and decided to make the critical decision now rather than wait for the future.

"I think next year may be worse than this year. There is nothing on the near horizon to provide money. And we can't hardly ask voters to vote for Proposition B and then come back in April for a local tax levy increase."

Johnson said the Board of Education in his district will discuss Proposition B at its Oct. 10 meeting. "We have discussed it, but we have not taken any official action.

"I still have some questions about the legislation," he said. "The big question for public schools is that we don't really know what's in it. We're not guaranteed any money unless the legislature rewrites the foundation formula. And there is also a 10-year sunset provision. I think we'll have a hard time explaining in 10 years where the money went."

After 10 years, the tax money would go to Missouri's general revenue fund and no longer be earmarked for education. Proponents of Proposition B, including lawmakers, however, predict that education will continue to get its share of the money.

"We're still in as good a financial condition as any other school district our size. But you can't do this forever," Johnson said. "We are deficit spending, digging into our reserves."

Chaffee Superintendent Wayne Pressley said the Board of Education at Chaffee endorsed Proposition B at the Sept. 12 board meeting.

"It's the only thing we see on the horizon to help replace revenue short falls," Pressley said.

He said the school district's teachers will be working to provide voters with more information about the legislation.

"I think our staff feels Prop B is an opportunity to recover some of the money we have lost. With all the cuts we've received, we will get $85,000 less than last year. That's a pretty good chunk.

"We know Proposition B is not a cure-all, but hopefully it will provide some relief for a period of time until we can get to an appropriate funding program equitable for all Missouri schools."

Pressley said, "Fortunately, thanks to good fiscal practices in the past, we have some reserves."

But cuts are forcing the district to "eat pretty heavily into those reserves this year."

"We'll have to take a look at programs as we go through the year and be resourceful," he said. "We've already asked staff to try to be efficient in the use of all resources.

Delta Superintendent Larry Beshears said his school district's Board of Education has also discussed Proposition B.

"I rather suspect we will be in support," Beshears said. "Right now, there is no other game to play."

Like many school districts, Delta is spending more than it is taking in. "We will anticipate spending $20,000 of the $28,000 we had in reserve in the teachers fund."

He said, "The big problem I see is letting patrons of this district know Proposition B is not a panacea for all problems. Even if Proposition B passes, there may still be a need for a local tax levy."

Beshears said that will be a hard ticket to sell.

"No levy or bond issue is popular," he said. A committee is meeting in Delta to determine what building renovations or changes must be made.

"Money is tight everywhere," Beshears said. "If things get worse, and they probably will, we will have to look at ways to keep the school district going."

He said the financial situation in a district can change in a hurry.

"If things don't get rectified, in three, four, five years down the road, we could be looking at reductions in offerings, or heaven forbid, we could be going under."

Nell Holcomb Superintendent David Fuemmeler said the school's Board of Education is considering a resolution in support of Proposition B.

"My personal position on Proposition B is that I would like to see it pass," said Fuemmeler. "I feel it's going to provide more money for the school and hopefully most of the schools in the state would share in it. If it doesn't pass, there is going to be less money for schools."

Fuemmeler said Nell Holcomb is in much better financial shape than many small districts because of a growth in the local tax base. Opening of the M&W plant added money to the district.

"We feel this is still a crisis situation, but we have not had to absorb as much of the funding reduction because of the local tax dollars," he said.