Cape school district goes from deficit to surplus

Three years ago, the Cape Girardeau School District was plagued with financial woes that forced the school board to make tough budget cuts. But today the school system is enjoying rosy finances that have the district putting more money in reserve.

So much so that school board members are looking how to spend some of the surplus. Board president Steven Trautwein and board member Kyle McDonald have suggested that some of the money be spent on building improvements.

Brenda McCowan, the district's chief budget officer, said the district expects to see its fund balance grow by more than $1.5 million over the course of this fiscal year.

By the end of the fiscal year on June 30, 2008, the district expects to have a fund balance of more than $24.7 million.

That's a big turnaround from the 2004-2005 school year, when the district was saddled with deficit spending of around $770,000 and a declining fund balance to meet expenses.

The district back then was burdened with financial woes even after the school board cut $1.2 million in spending. In January 2004, the school board eliminated five teaching positions, froze salaries and decided to charge students fees to participate in high school sports and other activities.

McCowan said the district has reined in spending in recent years while also benefiting from increased state aid and local property tax revenue as a result of an improving economy.

The state legislature has approved a new funding formula that funnels more state money going to public schools.

"When all of those things come together, that is how you increase your fund balance," McCowan said.

She said the district has "tightened its purse strings" over the past few years. "We haven't done a lot of capital improvement spending," she said.

Reassessment of property valuations also has helped. The total assessed valuation in the Cape Girardeau School District is more than $537 million, up 9.5 percent over a year ago, McCowan said.

Even with the hiring of Patrick Morgan as director of administrative services for the district, McCowan said the central office still has less staff than just a few years ago.

When employees leave the district, school officials consider whether the position is still needed or should be eliminated, McCowan said.

The district expects $43.4 million in revenue this fiscal year. Expenditures are budgeted at $41.9 million. Salaries and benefits account for about 70 percent of expenses, she said.

Although Trautwein said school board members aren't looking to spend surplus money wildly, he said the board should at least look at the possibility of spending some of that money on building improvements.

"Let's see what we can do to put some of that money to work for us." Trautwein said.

mbliss@semissourian.com

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