School districts' finances unsteady despite Prop C waiver

While Jackson school officials breathe sighs of relief over the $1.9 million in additional funding voters approved this week, officials in Cape Girardeau still search for solutions to their own financial problems.

They won't be looking to their western neighbor.

The Proposition C waiver Jackson secured Tuesday is not an option in Cape Girardeau, because the district already has such a waiver in place.

In 1997, Cape Girardeau voters approved with a simple majority a Proposition C waiver along with a $14 million bond issue, which set in motion the district's master plan for construction of the Career and Technology Center, Blanchard Elementary and the new Central High School.

That vote led to a total 69-cent increase in local property taxes -- 39 cents for the waiver, and 30 cents designated to pay back the bond issue.

The 39-cent tax increase from the Proposition C waiver has resulted in an estimated $1.5 million annually in additional tax revenue for the school district.

Chief financial officer Rob Huff said that amount has been offset by the school board's decision to voluntarily reduce the annual levy for the past six years, so that the district is not taxing to the maximum capacity allowed under state law.

The school board could increase the operating levy as much as 16 cents without a public vote, which would generate around $650,000 annually. Because of public outcry over that proposal, officials have chosen to keep the levy at $3.99.

Hold harmless status

Huff said Cape Girardeau's status as a hold harmless district also impacts the funding gained from the Proposition C rollback.

Because the Proposition C waiver will increase Jackson's operating levy, that district will receive an additional $1 million in state funding annually. Cape Girardeau, as a hold harmless district with state funding levels essentially frozen at 1993 levels, receives no additional state aid for raising the tax levy.

The district has now turned to the public for help in solving the budget crunch.

A newly-formed financial task force, made up of around 100 community members and school employees, is in the first week of a two-week series of meetings. The task force has been charged with making recommendations for $2.2 million worth of cuts to the district budget by the end of November.

Cape Girardeau superintendent Mark Bowles will present the recommendation to the school board in December.

Just as the waiver hasn't solved Cape Girardeau's financial problems, Jackson officials are careful to point out this is merely damage control for their district.

Jackson superintendent Dr. Ron Anderson said the additional money, which will not be received until next year, won't allow the district to replace the 17 teaching positions that went unfilled this year, or catch up on maintenance or technology purchases.

cclark@semissourian.com

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