JACKSON SCHOOL OFFICIALS CITE FINANCIAL NEEDS

JACKSON -- Jackson School District could be dissolved or taken over by the state if financial concerns aren't addressed within the next three years, school officials say

The school district has overspent its budget for the past two years. More deficit spending is projected as increases in expenses outpace income gained from growth in assessed valuation the district receives as the number of homes, businesses and industries in Jackson increases.

School administrators said the district needs more funding to hire staff, operate buildings and provide other needs.

"If things stay the same it just gets worse," said Dr. Terry Gibbons, assistant superintendent for finance and support staff. "It goes from a small, bleeding wound to a hemorrhage."

Gibbons estimated the district's operating fund balances will be gone within the next three years. Missouri law requires school districts to maintain balances of 10 percent or more of budgeted expenditures to sustain adequate cash flows.

If deficit spending occurs and balances drop to 3 percent or less of budgeted expenditures, the Department of Elementary and Secondary Education designates the district financially stressed. The designation means the school board could waive its Proposition C rollback without a vote of the people, but it would be required to freeze salaries and administrative costs until the district could build a 3 percent reserve fund in its operating fund.

If the situation didn't improve within a designated period, the district could be declared insolvent, and students could be distributed to neighboring districts.

"Within a year, if we don't do something to address our operating levy, we won't have to worry about space or a new school," said school board member Brent Wills during a community meeting Tuesday night to discuss the district's needs.

The meeting was the second in a series of community meetings the board has held to gather public input regarding the district's needs. A third meeting will be held at 7:30 p.m. May 18 at Jackson Middle School.

"It's a community issue, not just a schoolhouse issue," said Superintendent Ron Anderson. "We need to know we have the support of the community."

Jackson schools have experienced growth of at least 3 percent every year for the past decade. State funding increases as enrollment grew were offset by additional hirings of teachers and other staff members.

The district's low tax levy reduced state funding even more. District taxpayers pay an operating tax levy of $2.75 per $100 assessed valuation, the state minimum. Missouri's funding formula reduces state aid to districts whose communities demonstrate growth but maintain low tax levies.

Gibbons said school officials tried to inform voters about the district's financial straits prior to the April 4 election. Even so, voters resoundingly rejected an operating tax levy increase and bond proposal that would have provided additional operating funds as well as funding for a new elementary school, 18 new classrooms and other renovations at R.O. Hawkins Junior High, staff salaries and new technology.

Participants at Tuesday's meeting said they were unaware the financial problem was so critical. The group listed a tax levy funding proposal and renovations to the junior high school as priorities that should be considered during elections Aug. 8.

School officials said they hope to have specific funding proposals developed before the May 30 deadline to get them on the August ballot. However, they said school officials want to ensure they have substantial backing from the community before they undertake another ballot issue.

"It takes a lot of work to put those together, and I don't want to do this again if the people are not going to support it and be happy about it," Gibbons said.