JACKSON SCHOOL OKs BOND ISSUE

JACKSON, Mo. -- Ever-multiplying ripples from the controversy surrounding last month's U.S. presidential election could have a positive financial effect for the Jackson School District's $6 million bond issue approved by voters Nov. 7.

Gregory Bricker, an investment banker with George K. Baum and Company of Kansas City, Mo., informed the Jackson Board of Education Tuesday night that uncertainty regarding vote counts in Florida have thrown the stock market off.

When the stock market wavers, interest rates generally improve on the bond market, which is good news for the school district as it prepares to sell $6 million in general obligation school building bonds to build a 20-classroom addition and make other improvements to R.O. Hawkins Junior High School.

The school board approved a resolution authorizing the investment firm to offer the bonds for sale on Jan. 10. The attractiveness of the bond market could save the district some $200,000 in interest expenses over the 20-year life of the bonds, Bricker said.

"You are somewhat of a beneficiary because of the presidential situation," he said. "I would hope that by Jan. 10 we have a president elected, but even if we do, I don't think that will have an effect in interest rates immediately. That's good for you."

Despite the anticipated income the sale of the bonds could provide, the district still must deal with low fund balances and high expenses.

The school board approved revisions to this year's budget Tuesday to reflect the sale of the bonds, anticipated interest income and better estimates for some expenses, including salaries and fuel prices. The amended budget, which includes about $23 million in operating expenditures, also projects a decrease of about $129,000 in fund balances for the fiscal year.

Assistant Superintendent Jim Welker said the lowered balances are cause for concern because they could make it difficult to meet staffing and other needs within the next school year.

"If we continue in the direction we're going right now, things will get serious," Welker said. "We're doing a good job right now, but we're getting in an area that could be dangerous."

District Superintendent Dr. Ron Anderson said the school board should begin planning for how to address the district's financial crunch so the district can maintain "the level of quality education the community has come to expect."

"The good thing is the projections have not changed much from what we've said in the past," Anderson said. "We need to be thinking about how we want to address this issue and solutions because we want to continue to face these problems as they arise."