SCHOOL UNIT MULLS NOTE TO COVER EXPENSES

The Cape Girardeau Board of Education might need to take out a note to pay expenses if balances in its funds continue to dwindle.

The board was warned at Monday's meeting that it should monitor its balances.

Certified public accountant Jeffrey C. Stroder said that "at this point we weren't alarmed, but it was something we wanted to make sure everyone was aware of." Stroder's firm, Beussink, Hey and Roe, had presented the district's 1999-2000 audit report to the board.

Although the district received a good rating overall, Stroder said the board should monitor fund balances to cover its operating expenses.

After the meeting, board president Dr. Ferrell Ervin said the dwindling balances were due in part to the local income tax coming in late. That tax isn't due until December and comprises most of the district's revenue. If expenses cannot be met over the next two months, the district might seek a tax anticipation note until it receives local tax proceeds in January.

"I think what we're dealing with is a potential cash-flow problem at this point," said Ervin. "I suppose it's possible if we continue to deal with this we might have to consider a tax anticipation note."

A tax anticipation note acts as a line of credit to help cover district expenses. This credit will guarantee checks written by the district between mid-November and mid-January are honored.

The district used a tax anticipation note in 1997 after balances became too low to pay payroll and routine bills.

In other business, building principals and others presented their goals for the coming year. Most goals focused on improving reading skills in elementary school students, increasing student achievement in classrooms and on state assessments, and encouraging more parental involvement throughout the district..