Cape Girardeau School District reaches out to staff on finances

As the Cape Girardeau School District works to balance its budget, it is reaching out to its staff.

The school board met Tuesday to discuss the status of the district's finances. Superintendent Dr. Jim Welker and district finance director Misty Clifton gave board members a rundown of projected revenue and ways to cut expenditures for the upcoming year.

District officials recently sent out a memo to employees explaining the financial situation. Welker said he also set up an e-mail address so staff members could bring up their concerns.

"It's a huge challenge, and we all need to pull together," Welker said.

After using reserve funds in past years, board members said they want to work to balance the budget for the upcoming fiscal year. As state and local revenue declines, it will be harder to solve the issue, Welker said.

Since 2006-2007 district expenditures increased by $6.2 million while revenue increased by $2.8 million.

One of the first challenges facing the district is controlling the cost of health insurance. Welker said the district will take steps to prevent it from increasing more than 10 percent. The board will improve the insurance plan at its November meeting, but possible changes could include higher deductibles, co-pays or prescription medicine costs.

"Those all might change in terms of keeping it where we can afford it," Welker said.

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.

When the board approved teacher salaries in April, it started a five-year plan to bring compensation more in line with other districts.

"It is very possible that we might not be able to do that this year," Welker said. "We might have to suspend that plan."

The district will hold two forums for staff at the Cape Girardeau Career and Technology Center. The first one will be at 4 p.m. Tuesday, and the second will be at 7 p.m. Thursday.

Welker said the district is also looking into cost-cutting measures as it analyzes its facilities plan. The district has been working with McCarthy Building Companies, a St. Louis-based firm, to prioritize construction and renovation projects for the district's 10 buildings.

The district will also have facility committee meetings Nov. 19 and Dec. 7 to discuss the plan. The board will also hold a special board meeting in December to discuss a potential bond issue. The rough draft of the facilities plan calls for $35 million in projects.

Welker said some capital projects could be covered through the bond issue, freeing up some operating funds. Renovation projects could also make district buildings more efficient and bring down utility costs, he said. As the district moves forward, the financial plan will merge with the facilities plan.

"We're trying to see how the two fit together," Welker said.

Board member Dr. Steven Trautwein said combining the two plans will be helpful to the process.

"This looks like it's going to be the best tool we have to analyze how to cut costs," he said.

abusch@semissourian.com

388-3627

Pertinent address:

301 N. Clark Ave. Cape Girardeau, MO