BUILDING FUND: CAPE SCHOOLS LOOK AT WAYS TO MAXIMIZE BENEFITS OF LAW

JEFFERSON CITY -- Missouri's new school funding law could make money for Cape Girardeau schools in more ways than one.

The district, according to latest data and with its existing local tax levy, is set to receive an additional $1.6 million to $1.8 million in state aid when the new law is fully implemented in four years.

But, the district could cash in on other provisions of the new law, a state education official told school board members and administrators Tuesday.

The school board and top school officials held its annual retreat in Jefferson City Tuesday.

Vic Slaughter, director of school finance for Missouri's education department, said Cape Girardeau schools could be able to pay for a new school building with state funds.

Voters would have to approve a local tax increase to make that possible, said Slaughter.

He advised local school officials to look at a lease-purchase method to finance construction instead of the traditional sale of bonds.

"In essence, the state would pay for your building," Slaughter said. "That tax levy would be in the incidental fund and would drive state money."

The new school funding formula included in Senate Bill 380 is tax-rate driven; schools with higher local tax levies receive more state aid. As the local school tax increases, so does state money.

"I think it would be foolish to vote a bond issue," he said. "Initiate the lease-purchase process and vote a tax rate increase the same as you would for a bond.

"I would look at this in October," Slaughter advised the board, "because I think the legislature will change it. The only reason they won't is if the state wants to finance all new buildings in the state.

"We've got some districts in the state that are so poor the state will pay four times the cost of the building," Slaughter said.

Superintendent Neyland Clark asked, "How do you communicate that we can literally make money building buildings?"

Lyle Davis, board member, said, "We've got two weeks to come up with a plan for alternative funding. I would like to see a fact sheet comparing the advantages and disadvantages of a lease-purchase plan versus a bond issue. I think we can make an intelligent decision for something this fall. If all this money is out there, let's get it."

John Campbell added, "It looks like it may be who gets there first."

To put an issue on an October ballot, the county clerk would have to be notified by Aug. 10.

"In terms of potential dollars generated," Clark said, "passage of a tax rate increase generates dollars. Anything we can do to address facilities will also generate more money."

The new law includes other money-making measures for schools, including all-day kindergarten and summer school. But neither of those options are possible with Cape Girardeau's existing buildings.

The law allows school districts to count kindergarten students who attend a full school day as a "whole student." In the past, kindergarten students, regardless of how many hours they attended, were counted as half a pupil for state funding purposes.

However, Cape Girardeau has no available classrooms to instruct kindergarteners for an additional half day.

"Summer school will make you a bunch of money," said Slaughter. "Schools receive twice the credit for summer school than for regular school."

However, Clark said, without air conditioning in city school buildings, summer school is not a possibility.

Clark said, "I know I've told you this before, but the real weak link in Cape Girardeau schools is facilities. Facilities are the handicapping factor of Cape public schools.

"A new middle school will solve some class size problems and it would affect all children in the district," he said.

Campbell said, "Perhaps we could close May Greene and Washington and use Schultz as an elementary school for the short-term."

Davis said, "I think if we could show the dollars that could be generated, we could package and market this to voters."

Gwen Bennett added, "The picture has changed now since April with Senate Bill 380."

In April, Cape Girardeau voters turned down a $25 million bond issue that would have financed construction of an elementary school and a middle school, an addition to Jefferson Elementary School and improvements to other schools, including air conditioning. Voters also turned down a 27 cent hike in the building fund levy for building maintenance and repair.

"I think voters told us they were interested in something less," Clark said.

Board member Steve Wright said, "I think the community is expecting us to come back with something soon."

Clark responded, "Let us do some homework on traditional and creative financing."

The board's next scheduled meeting is Aug. 9.

The board also heard reports on revamping its evaluation process for teachers and other personnel and an update on the district's newly organized policy manual, which is set for adoption in August.