CAPE SCHOOL BOARD STUDIES BUDGET

Cape Girardeau school administrators told the school board it needed to set priorities so administrators could produce sound financial projections for the next five years.

School board members and administrators met in a half-day study session Saturday at the Cape Girardeau Chamber of Commerce board room. Board members discussed long-term budget projections and class scheduling among other issues during the annual meeting.

Business manager Dr. Steve Del Vecchio spent much of the morning demonstrating where the district would be financially over each of the next five years based upon projected expenditure and revenue estimates.

Del Vecchio suggested the board set priorities when it requested more specific information on how individual factors -- including implementing a competitive starting teacher salary, reducing staff at the secondary level and eliminating one preparation period for secondary level teachers -- would impact the district's finances in coming years.

"We know the problems, but you have to tell us what your priorities are," he said. "Ultimately, that's got to come from you to us so we can put the wheels into motion to fix them."

Based upon a comparison of fund balances, revenues and expenditures on Jan. 31 with those at the same time last year, the school district might see an increase of about $900,000 in the general revenue fund when the fiscal year ends June 30, said Del Vecchio. The general fund, which includes general operating expenses, textbook and food service costs, could be an estimated $2.6 million June 30.

Del Vecchio anticipates the slight growth in fund balances will continue over each of the next five years, resulting in combined general fund balances of about 12 percent of annual budgeted expenditures. This is 2 percent more than the state-recommended minimum percentage.

The projections include some staff salary increases and 1.75 percent inflation rate each year. The total projected budget for each year was about $27 million.

"There is an element of uncertainty in these numbers, so they're not cut in stone," Del Vecchio said. "I would like to redo these numbers (for the current fiscal year) at the end of each month to stay on track."

District superintendent Dr. Dan Tallent said the financial projections were conservative and relied more on reduced expenditures than increased revenues. The anticipated growth in fund balances also reflected increased state funding from the end of court-ordered desegregation in St. Louis and Kansas City.

Tallent said the budget projections will be handy for future financial planning but shouldn't be the basis for increases in spending.

Tallent said, "I still have to have the mind-set of being very conservative when we make estimates in advance of revenues. These are only projections, and anything could happen that would change the way these numbers bear out."