Jackson R-2 School District seeking two tax increases

(Editor's note: This is the first of a series of articles about the Jackson School District's tax propositions on the April 4 ballot.)

Jackson Indian stickers, whether representing the school itself or a recreational sports offshoot of the school's Indian brand, are adhered to vehicles throughout town. Business marquees wish luck to the school teams as they wind through their respective seasons.

Band and choir students come back with state medals.

The district posts good districtwide academic scores and graduation rates.

Students choose advanced courses and electives not found in nearby districts.

Then there are the facilities -- the high school campus is larger and more modern than many junior colleges. A new elementary school serves Jackson's east side. Several schools have seen upgrades in the last five to 10 years.

The pride that Jackson shows in its schools is demonstrated in many ways, some of which can be enumerated with data, others by brick and mortar and others by experience. Though not without its problems, the district does many things well by many measures.

Perhaps nothing embodies the idea that the community supports the Jackson R-2 School District more than this number: 931.

That's the enrollment increase in the district since the 2012-2013 school year, a boost of 19%. While the larger Bootheel region lost some 8,000 people between 2010 and 2020, Jackson school district has become a magnet for families in the Southeast Missouri area.

To put that number in perspective, 931 students is about four times the entire population of Oak Ridge, and just 200 shy of the population of Oran, Missouri. In the last decade, the district has welcomed an entire small town of students onto its buses and into its classrooms.

Jackson School District is feeling the growing pains of the student influx. The current eighth-grade class is projected to graduate 500 students -- roughly 140 more than this year's graduating class. Without intervention from taxpayers, district officials say, the district will take a step backward.

District officials have been working for more than a year to develop a strategic plan to address the continued growth of the district.

Now they are asking voters to approve two tax propositions on April 4 -- the first a .47 tax levy increase, which they say would give the district the operational funding it needs to raise teacher and staffing pay, as well as fund ongoing building maintenance; the second a .44 debt levy increase, which would allow the district to borrow and pump $60 million into building needs such as roof repairs, classroom expansions, a new performance center at the high school and delayed improvements at North Elementary School in Fruitland.

The plan is intended to address immediate needs, but also give schools room to expand as the district continues to grow.

It's a complex plan involving two proposals. The operations levy, Proposition I, will need a majority vote to pass. The general obligation bond, Proposition N, will require a 4/7 majority.

Superintendent Scott Smith said he knows asking for a tax increase is a tough ask at a time when inflation has affected people's personal finances. He said the owner of a $200,000 house is being asked to contribute what amounts to about 96 cents per day.

"We would not be going to voters if it wasn't a need," Smith said. "If this was a want, there is no way we would do this. This truly is a need for the district. If we want to continue to have Jackson the way everyone loves and admires and expects, to keep the great traditions that have gone on, it's a need."

R2 tax context

Propositions I and N will be voted on separately on the same ballot. They follow Proposition J, passed in 2017, which allowed the school district to borrow $22 million without raising the property tax. That measure -- passed by a 72% majority -- added classrooms to schools. Prior to that, in 2012, voters approved a proposition, which again did not raise the tax levy, to build East Elementary among many other upgrades. The last time the property tax rate was increased was in 2005, when voters agreed to expand the high school. The previous measures primarily addressed space for students. But as the buildings and student body grew, so did the district workforce.

Due to the increased payroll over time, the larger student body and more-recent inflation pressures, the district has not been able to keep pace financially, officials said. Teacher pay has fallen behind. Unrestricted fund balances have fallen every year since 2016-2017. (Unrestricted fund balances are essentially the funds remaining after a fiscal year completes and are available to spend until revenue from property taxes begins to flow in December.) What was a 25.6% fund balance in 2017-2018 now sits at 14%.

One reason the fund balances have shrunk is the cost of two lawsuits that embroiled the district for more than a decade. The suits stemmed from a construction project and involved the general contractor, Penzel Construction, and an electrical contractor, Total Electric. Over the course of the legal actions, the district paid about $7 million in settlements and about $2 million in legal costs, though not all of those costs directly related to the suits.

According to Matt Lacy, assistant superintendent, the lawsuits did not significantly affect the district's financial condition.

"While the recently settled legal issues were not advantageous for the district financially, the need for propositions I and N are not derived from the lawsuit," he explained. "The district has pursued and obtained alternative funding sources, such as grants, that have offset the costs associated with the lawsuit. ... The need for propositions I and N are attributed to a growing student population coupled with a tax levy that has remained unchanged for 17-plus years."

The growing number of students coupled with decreased fund balances is a concerning trend that requires a correction, one way or another, school officials say. Salaries and benefits of the district account for 73% of the district's expenses, according to district figures.

Proposition I plans

Long before the Jackson School Board voted to put the proposition on the ballot this January, school district officials held forums and sought public input about expectations from the community and staff.

Among the most urgent issues that would be addressed by the operation levy, Proposition I, would be teacher and staff pay. The number of teachers and educational professionals working at the district has grown from 618 in 2005, to 893 today. According to materials provided by the district, Jackson pays its teachers, on average, less than the state average for school districts its size, especially teachers with significant experience and educational training.

Jackson's maximum teacher salary, which requires a master's degree plus 24 credit hours beyond a master's, ranks 49th out of 50 large districts in Missouri. The top-ranked district is Kirkwood, the same district that recently hired Jackson's current high school principal, Dr. Seth Harrell. Kirkwood's max teacher schedule pays $109,062, compared to $58,166 in Jackson. The median "schedule max" teacher salary is $81,447 among Missouri's larger school districts listed in documents provided by Jackson school officials. While Jackson pays new teachers more than some other Missouri districts, Jackson on the whole pays less to its more experienced educators than Poplar Bluff and Sikeston, and in some cases Dexter, Perry County and Kennett, among others. Ste. Genevieve pays higher salaries than Jackson at every teacher experience category.

Janelle Pope, associate superintendent who heads up human resources for the district, said several teachers have passed up working for Jackson, instead taking jobs at other districts, some of which are smaller. She said she's also seen teachers leave the district for more pay elsewhere.

In terms of starting teacher pay, Mike Tornetto, a Jackson social studies teacher who serves as the salary chair on Missouri State Teachers Association, said Jackson now stands outside the top 10 in the region on starting teacher's pay, adding Cape Girardeau School District pays $1,400 more to starting teachers.

Pope said for a long time Jackson had a reputation within the region of being the place to be for teachers, but it's "become difficult to compete."

Jackson's administrative salaries are about $5,000 less than Missouri's average.

The district's flexibility to pay teachers more is pinched by many factors. Annual electrical costs, for example, have increased by nearly $800,000 since 2005. Those costs increased not just because of the expansions, but because of rising rates. Propositions I and N will address those escalating costs.

Proposition N plans

While Proposition I will address the revenue needed to pay staff and teachers from the operation budget, Proposition N aims to tackle continuing building expansion and upgrades.

Space for an additional 30 to 40 classrooms will be constructed at the high school. The building will go up in a current green space where picnic tables sit outside one of the high school's main hallways. Not all the classrooms will be finished right away. Some of the space will be roughed-in to handle growth needs as they arise down the road. But Harrell, the outgoing principal, said there are specific needs in science classes. Currently one of the science teachers doesn't have labs in her classroom, because there are more students taking science classes than classrooms with labs can accommodate. That forces teachers to swap rooms with one another, which happens in several departments across the campus. Harrell said more classrooms are needed to house elective courses as well. The high school can't meet demand for certain courses, simply because there is not enough room.

District staff and high school teachers say the high school's lack of space -- even with upgrades since 2005 -- creates significant problems.

"It's a logistical nightmare on the daily," said Christy Shinn, choral director at the high school. Shinn, a graduate of Jackson High and a teacher there for 25 years, understands the limitations of the high school campus perhaps more than anyone. Proposition N will address many of those issues by constructing a performance arts facility where the old football practice field used to be in the field across from the Bank of Missouri. That space was freed up when the district installed turf in the football stadium, which now can be used for practice.

The current auditorium was built in 1939, when the City of Jackson was one-fifth the population it is today. It was built for elementary students and holds only 500 people. The chairs are smaller than airplane seats, meaning larger individuals, whether too tall or wide, cannot sit in the auditorium. The auditorium is also not handicapped-accessible. It's used for events but also staff meetings and presentations. It's not large enough to hold all of the district's teachers.

Because of its seating capacity limits, Shinn's students have to put on as many as four or five performances so all the parents can see their children's pop concerts. The district has not drawn out specific plans, but based on estimates of other facilities, the district would put about $18 million toward the performance arts facility, which is expected to roughly double the audience capacity. A new performance facility is being placed on the ballot to upgrade an outdated facility and solve time-consuming logistics problems, which require setting up and tearing down on a daily basis.

Proposition N would give more space and opportunities to students who play instruments, are involved in theater or sing. Several hundred students are involved in such activities.

Proposition N mentions North Elementary by name. Proposition J added a new classroom wing and a library to the school, but the district changed plans at the last minute, building a new gym at the middle school instead. The Prop J ballot language didn't specify a new gym for North Elementary in 2017, but parents and staff were nonetheless disappointed when the gym was not built. Prop N ballot language promises to give the school a new gymnasium and added classrooms.

Proposition N will also relocate the at-risk ACES program to new facilities, which will free up more classroom space at the high school campus. More than $3 million of Prop N will be applied toward school security and safety. Another $14.5 million will be put toward a lease purchase, which will free up more room for the operations budget as well.

If the propositions don't pass

The operations levy would correct the financial course of the district, officials say. If it is not passed, the district has already prepared a list of moves that are on the table in the next three years, which include larger class sizes (hiring freeze); salary freeze; elimination of bus routes within 2 miles of the school; sale of an 80-acre farm the district purchased for future growth; cut in supplies and equipment, including a reduction of technology supplies and materials of 30%; closure of Millersville and Gordonville elementary schools; cuts in insurance and benefits; and delayed Chromebook rotations.

If Proposition I passes, but not Proposition N, the district would have a boost of around $3 million to help fund salaries, but the relief would be more pronounced if N passes. Eliminating debt payments would give the district more flexibility to handle immediate roof repairs and bus purchases.

In addition to addressing students and teachers, the improvements affect the community beyond the school walls. That's why the Jackson Chamber of Commerce is endorsing both propositions.

"When families and businesses consider Jackson as a place to locate, the first thing they inquire about is our schools," Brian Gerau, the CEO of the Jackson, Missouri Area Chamber of Commerce, wrote in a letter of support. "Jackson R2 schools is an economic development driver for our area. The Jackson Chamber Board of Directors believes that passing proposals I and N ensures success for all residents and strongly supports these initiatives."

Tax rates for school districts in Cape Girardeau County (per $100 of assessed valuation):

• Delta, 4.500
• Oak Ridge, 4.3322
• Cape Girardeau, 4.1567
• Nell Holcomb 4.0700
• Jackson (current), 3.800

If both Jackson issues pass April 4, the tax rate would stand at 4.71.