CAPE SCHOOLS FACE LOOMING BUDGET DEFICIT

Cape Girardeau public schools are looking at a shortfall of $200,000 to $350,000 in this year's budget.

The district already budgeted to spend $550,000 more than it planned to receive. Now revenues may be less than projected.

The budget news was given to school teachers and staff Thursday by Superintendent Dan Tallent and Business Manager Steve DelVecchio. The same budget information will be presented April 8 at a study session of the Board of Education.

Board members and school administrators hope that people will ask questions about school finances in an effort to understand the working of the budget.

The district budgeted revenues of $22.1 million for this school year. DelVecchio said best projections this week show that the district will receive only $21.8 million.

Revenues are down $320,000 in local tax receipts. Collections of property taxes are down. The district also will get up to $75,000 less state revenue.

Proposition C revenues are up at least $35,000 over budget.

DelVecchio said the worst case shortfall in revenues will be $347,000. The number could be $200,000 if people pay property taxes and if Proposition C revenues continue to rise.

On the expenditures side, the district budgeted $22.6 million. Much of that money was spent for teachers' salaries.

The Board of Education planned to spend $550,000 from the district's reserve funds. DelVecchio said the district next year must look at a balanced budget since the reserve fund at the end of this year likely will total less than two months expenditures for the district.

Accountants differ on how much money a school district should hold in reserve, but DelVecchio said he recommends two to three months for Cape Girardeau because of the age of the district's buildings.

Within the last few months, for example, lightning hit the air conditioning unit at the junior high school, water leaks occurred at Clippard and Washington schools and part of a parapet collapsed at Schultz school. None of those repairs were anticipated in the budget.

READER ACTION

If you have questions you would like answered at the Board of Education's April 8 study session, send them by April 1 to:

Steve DelVecchio

Business Manager

61 N. Clark

Cape Girardeau, Mo. 63701