Cape Girardeau School District holds budget forum

While the Cape Girardeau School District will not finalize its budget for another seven months, it is already discussing cost-cutting measures with staff.

"We think it's prudent for us to start now and talk about where we're at," said superintendent Dr. Jim Welker.

District officials held the first of two information forums for district staff Tuesday. About 30 employees attended a presentation on budget challenges for the district. The district also set up an e-mail address for employees to ask budget-related questions.

Depending on how state and local revenue falls, Welker said cuts could affect salaries. Some positions also may not be filled, increasing class sizes, he said.

"We will certainly look at all things as we move forward," he said.

When the board approved teacher salaries in April, it started a five-year plan to bring compensation more in line with other districts. The district started unfreezing pay levels for teachers, making it easier to increase starting salaries.

"It is very possible that we will not be able to afford the implementation of that plan," he said.

An employee asked about the possibility of offering retirement incentives to eliminate higher salaries. Welker said the idea has not been "seriously considered at this point."

"I'm not saying it is the first thing we're going to look at, but I'm not taking it off the table," he said.

Some employees said they were concerned about the public perception of funding a districtwide renovation and construction plan while struggling to keep up with operating costs. The rough draft of the district's facilities plan calls for $35 million in projects. The district has been working with McCarthy Building Companies, a St. Louis-based firm, to prioritize projects for a potential bond issue.

The last time the district approached voters with a bond issue was in 1997. Voters passed funding measures to construct Blanchard Elementary School and the Cape Girardeau Career and Technology Center.

Welker said operating and debt-service funds are separate. Recent repairs have been funded with operating funds, he said. If the district does not address its ongoing needs through a bond issue, some of the costs for projects like roof repairs will come out of operating funds.

"I can't stop moving forward in terms of meeting the needs of our facilities," he said.

Ann Hogan, a psychological examiner at the junior high school, attended the meeting. She said she is concerned about the additional stress of not replacing teachers.

"We want to be able to assist students as effectively as we can," she said.

Offering retirement incentives would also have a negative effect on education, she said.

"You lose experience out of the district when you do that, but there's no question it saves money," said Hogan, who has been teaching for 28 years.

The second staff budget meeting will be Thursday at 7 p.m. in the Cape Girardeau Career and Technology Center.

Health care costs

Earlier in the day, the school board met with David Johnson from CBIZ Benefits and Insurance Services. He talked about the increasing health care costs for the district.

The district has more than $4 million budgeted for insurance costs this year. Employee salaries and benefits account for about 75 percent of the district's $42 million budget.

School officials said they want to keep health insurance costs from increasing by more than 10 percent. With higher copays and deductibles, the district will keep costs under control, Johnson said. The board will consider the new rates at its Nov. 16 meeting.

abusch@semissourian.com

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Pertinent address:

301 N. Clark Ave. Cape Girardeau, MO