JACKSON SCHOOL BOARD EXAMINES COST-CUTTING OPTIONS

JACKSON -- Reducing cafeteria services or closing the high school cafeteria and cutbacks in capital projects are among options the Jackson R-2 Board of Education may consider this summer, if the district's financial condition doesn't improve.

A second list of cost-cutting options was presented to the board Tuesday by school district Business Manager Howard Alexander. The final list of cost-cutting options for the district's 1991-92 operations budget will be presented to the board April 23.

"The board can consider these options later this summer after the dust settles in Jefferson City, at which time the board can make a decision on whether cuts are actually needed," said Alexander. "If some reports that are coming out of Jefferson City become reality, then we'll be okay, we'll be in good shape."

He said the 10 cost-cutting options in the second list would have an impact on students and staff, but not on the academic curriculum.

The two options that would derive the most cost-savings, approximately $40,000 each, are reductions in capital projects and a reduction of cafeteria services, or closing altogether of the high school cafeteria.

Alexander said that during March, a daily average of 29 percent or 238 of the 807 high school students participated in the cafeteria lunch program.

"For the school year to date, March 31, an average of 246 students or 30 percent of the student body have used the cafeteria during any one day," he said.

Alexander said that from the start of school last fall through the end of March, it has cost the district $57,584 to operate the high school cafeteria. During that same period, income to the school cafeteria from student-lunch tickets and the 18-cent-per-pupil-per-meal-served federal subsidy amounted to $44,000, for a net operating deficit of $13,000.

When the district's fiscal year ends June 30, Alexander said the deficit in the food-service account will be approximately $20,000. Most of the deficit will come from the high school cafeteria.

He said the continuing deficit in the food-service account is made up each year from funds in other areas of the budget.

Alexander said that by federal law, no school district that receives the federal food-service subsidy can operate its food service at a profit. The districts can break even on their food service operations, he said, but they cannot show a profit. Currently, the high school cafeteria charges $1 per lunch.

Alexander said the high school cafeteria is the most expensive cafeteria operated by the district as far as the loss ratio is concerned. He said one reason is the high school's "open campus" policy that allows students to leave the campus during lunch time. The R.O. Hawkins Junior High School and all of the district's elementary schools have a "closed campus" policy, which results in greater student participation in the junior high and elementary school cafeteria lunch programs, Alexander said.

Commenting on the option to reduce the number of capital projects, Alexander cautioned: "If you reduce capital projects, some years down the road, we're going to pay for it because we're going to have a bunch of buildings that are in bad repair. This option should be studied very carefully."

Other options that were presented include:

- Limiting long-distance telephone usage.

- Limiting postage usage.

- Adopting an incentive program for early retirement

- Imposing a cap on board-paid health/dental/life insurance premiums for employees.

- Limiting use of school district buildings after school hours by students and the public.

- Limiting athletic travel.

- Limiting all travel by extra-curricular groups.

Alexander said the district's long-distance phone bill has increased about $1,000, from $3,400 to $4,300 per year. He said the volume of mail in the district has remained about the same but the district has seen three increases in postage rates.

"The early retirement incentive program is becoming very popular in Missouri and other states," he said. "That's because those who retire are usually at the upper steps of the salary schedules, while those hired to replace them are at the lower end of the salary schedule."

Alexander said one school district more than doubled its pay-back from the early retirement system during the first year of operation.

"If that is done, a committee should be appointed to study the different programs," he said.

The school district now pays up to $163.80 for each of the 252 eligible employee's health, dental, and life insurance premiums. Alexander said that if the board imposed a cap at $165, and costs increased 15 percent, the district would save $6,300."

Alexander said any decision to reduce athletic travel would have to be made at least one year in advance because of scheduling.

School Superintendent Wayne Maupin emphasized to the board, students, staff, and school district patrons that these are only options the board might consider later this year.

"What we did was brainstorm, spending a lot of time looking at every facet of school operation and expenditures, planning for the worst and hoping for the best," he said. "We looked at every area and tried to determine, if we get into a real financial crunch, where can we start with expenditure reductions.

"As you can see," said Maupin, "it's difficult to reduce. One of the things you glean from all of this is that it is very difficult to reduce expenditures significantly.

"There are no frills in the budget. Most of the savings mentioned in the options are minor for a budget our size. Without reducing staff, it is very difficult to have a major impact."

Maupin said the purpose of presenting the options to the board is to keep the members fully informed should the time come when cost-cutting measures might have to be considered.