R-2 BOARD GIVEN UPBEAT REPORT ON BUDGET

JACKSON -- The Jackson R-2 Board of Education got a positive update Tuesday on the district's 1990-91 budget and its projected financial condition at the end of the current fiscal year June 30.

"The bottom line is that we're in a lot better shape than we anticipated," said district Business Manager Howard Alexander. "The revenue (receipts) side of the budget is about the same as what we projected at the first of the year, but the expenditures in the general fund and capital-projects fund are less than we anticipated."

The general fund is the operating fund of the district.

Alexander also had good news about the special revenue, or teacher fund. Instead of ending the current fiscal year with a balance of about $3,000, Alexander said the fund, which includes teacher salaries and benefits, is projected to wind up with a $31,000 balance.

Alexander said that three to four months ago he fully expected the teacher fund would be in the red by July 1. Instead, it will contain about $20,000 more than expected, thanks largely to the resignations of two teachers during the school year, he said. He said there was no increase in state funding for the teacher fund.

The good news, however, was tempered with a caution that the year-end balance in the teacher fund on June 30, 1990 was $247,064. "Somewhere between now and the time you employ the staff, which is at the next board meeting, somewhere within this budget we've got to shift $300,000 to the teacher fund just to meet the staff payroll next year," he warned. "That's just to maintain the status quo, and does not include such things as increased cost of insurance."

Alexander said, if the board decides to shift money from other funds to the teacher fund, it will have to be replaced at some time.

Alexander said the general fund, which is anticipated to have a balance of $200,000 on June 30, is now projected to wind up with a balance of $529,431. He said the reason is lower fuel costs due to a mild winter and the fact the district took control of a new elementary school and multipurpose building later than had been expected.

But Alexander cautioned: "These are soft figures. All of this is six months down the road. We've still got until the end of June to go."

Alexander also urged the board to be careful when it budgets next year's general fund. He said: "You have to put some money in there in anticipation of a bad winter next year, and we could have an early summer that would kick on the air conditioners. That would cause our anticipated expenditures in that fund to go up drastically."

Commenting on the report, Superintendent Wayne Maupin said it was "certainly a boost to our morale." He said the administration fully expected the teacher fund would be in the red by the end of the school year.

Because of budgetary concerns, Maupin said the administration will submit to the board a list of options that will be considered at the next three board meetings. He said some of the options will impact students, staff and curriculum, and some may not be popular with district employees.

"Depending upon the seriousness of our financial condition, we will need to determine which options and, or, how many options will have to be implemented," Maupin said.