SCHOOL BUDGET ADOPTED; CAPE DISTRICT TO TAKE UP DEFICIT NEXT YEAR

The Cape Girardeau Board of Education Monday night approved a deficit-spending budget for this year and said it plans to work to correct the district's financial decline in the next budget.

The board, minus absent members David Goncher and Harry Rediger, unanimously adopted the 1997-98 budget. The $24 million budget includes expenditures that outpace estimated revenues by some $500,000.

The school district is in a financial crunch administrators attribute to large, recurring expenditures; smaller-than-expected revenues; and a shortage of state aid due to the district's hold-harmless status.

School board president Dr. R. Ferrell Ervin said the board's decision to focus on the next fiscal year for correcting the financial dilemma could be related to time and existing agreements. A set timeframe needed to be met for getting the budget approved, and there are few areas in the budget to trim because it includes required programs, contracted agreements, and certified and classified staff salaries already in place, he said.

Ervin said plans are already in place to correct deficit-spending in the next fiscal year.

"The board will and really has instructed (superintendent) Dr. (Dan) Tallent and the administration to begin a process that will look at the total budget, and make corrections in the deficits that had been created," he said after the meeting. "There wasn't much room to move or make alterations because the budget had been basically set through a whole series of steps dealing with the whole strategic plan."

The only direct comments regarding the district's financial problems were made by people addressing the school board.

In his report to the board, school auditor Jeff Schroeder said the decline in the district's cash balances was noted, but could be attributed to smaller-than-expected revenues being received. Overall, he said, the district appeared to have good accounting controls in place and there were no real compliance problems noticed.

Over-budget expenditures of $153,073 from the capital projects fund were one area of noncompliance found, he said, but the expenditures were explained to satisfaction and were not a cause for major concern.

"State law requires expenditures to be within budgetary limits, but we understand some of the costs for construction came at the end of the year and were paid for from bond proceeds," he said. "We felt you as the board needed to be aware of the compliance standards because final approval of these expenditures must be given by you."

Brenda Woemmel, who represented the district's chapter of the Missouri National Educators Association, told board members her organization was concerned that teachers were being blamed for the financial woes of the district. References made to teachers' salary increases in past years suggest that certified staff are the cause of the problems, which isn't accurate, she said.

"Teachers should not feel that we are only talking about certified staff when we discuss the salary increases," she said. "I also have heard no discussion of teacher input in trying to solve the problem. Certainly if teachers' costs are an issue, then certified teachers should also be included in solving the problem."

Superintendent Tallent said increases to all staff salaries have contributed to the district's current financial picture. No one division is or should be singled out for blame, he said.