JACKSON SCHOOL BOARD REVIEWS A BLEAK BUDGET

JACKSON -- The Jackson School Board Tuesday approved a tentative 1991-92 operating budget that anticipates more than $500,000 in expenditures than it does in receipts. However, the budget will still have a July 1, 1992, balance of $1.8 million.

But Business Manager Howard Alexander warned if the income side of the ledger doesn't improve in the next year and a half, the district faces a severe financial crisis.

Alexander said the estimated $550,000 budget shortfall is due to increased operating costs, while receipts, mostly from the state, have remained nearly static.

The board will adopt the final budget later this fall.

Alexander said projected total operating expenditures for the district next year are $11,572,518, with projected revenues of $11,026,467.

Because of a carry-over balance from this year, the overall balance on July 1, 1992, is projected to be $1,821,626. But Alexander said the total balance at this time next year will actually be around $1.4 million, since $400,000 of the $1.8 million must be taken out for debt service.

"We feel the (expenditure) figures are relatively firm figures," said Alexander. "We feel very comfortable because most of that is made up of salaries that are fixed." He said the estimated, year-end balances are also "pretty safe figures."

But Alexander was less optimistic on projected receipts the district can expect in 1991-92.

"This is really a soft figure," he said. "There are really so many projections right now. We have no idea. There are still mixed feelings on the sales tax, and speculation on how the minimum guarantee monies will be distributed. Hopefully, by August, when the final budget is normally presented, we'll be in a better position to give you better figures."

Alexander said the budget shows a transfer of $224,436 from the general fund to the teacher fund in order to make that fund show a zero balance by July 1, 1992. If it were not for the transfer, the teacher fund would show a negative balance next year.

On a positive note, Alexander said the outlook for the district's capital projects fund and debt service fund is good. But he again voiced concerns about the teacher fund and the general fund.

"We will continue to have concerns and a lot of reservations about the General Fund and the Special (Teacher's) Fund," he said.

As noted, the teacher fund balance at this time next year will show a zero balance because of the $224,000 transfer from the general fund. The general fund at this time next year is projected to show a balance of $394,880.

The Debt Service Fund is projected to have a year-end balance of $409,660, while the Capital Projects Fund will have a projected balance of $1,017,080.

"The Capital Projects Fund will remain in relatively good shape for another year," Alexander said. "As for the Debt Service Fund, we will probably recommend the same tax levy to offset the cost of retiring the district's debts. That continues to be a sound fund."

In other business, the board approved the low bid of Penzel Construction Co. for construction of the district's school bus transportation center that will be located east of the Orchard Elementary School.

Penzel's bid of $212,150 was the lowest of the 11 contractors bidding on the project. Estimated completion time is 135 days.

School Superintendent Wayne Maupin said the majority of the funding for the center will come from leftover bond receipts, and the rest from the capital improvements fund. Maupin said over a period of time, the district will recoup about 80 percent of the cost of the transportation center from state funds.

The board approved low bids for roofing the senior high school music and agricultural building, and tuckpointing and sealing of the senior high school gym.

The low bidder on the roofing work was the Drury Co. of Cape Girardeau, with a bid of $29,861.

Kenny Foeste Masonry was the low bidder on the tuckpointing work with a bid of $5,727. Alexander said the work will extend into the start of school next fall, but noted the district was one month late in awarding the bids.

The board approved a revised 1991-92 capital improvements projects list that includes five improvement projects at the senior high school campus, purchase of computer hardware and accessories for the new senior high school computer lab, and purchase of a new tractor and mower.

Added to the revised list is the district's share of the city paving of North Orchard Drive, a new public address system at R.O. Hawkins Junior High School, and remodeling of the district's central administrative office building.

The board approved renewal of the building insurance policy with Public Entity Risk Managers of St. Louis for 1991-92. The annual premium will remain at about $40,000.

Jerry Schwab was reappointed district auditor, and David Beeson was reappointed as attorney for the school district.

The board voted 4-0 to make changes in its sick leave policy for both certified and full time personnel in the district. However, the board declined to add any personal leave days to the one now authorized. Board members said the cost of the proposal makes it unwise at this time because of the financial condition of the district.