SCHOOLS SEEK TURNABOUT: SPENDING CUT OPTIONS FORTHCOMING

When the Cape Girardeau Board of Education gave pay raises of more than 8 percent three years ago, board members knew the district would spend more than it brought in.

But Dr. R. Ferrell Ervin, who is now president of the board, said the board wanted to make salaries more attractive to improve education in the district. Projections showed local revenues would increase enough to make up the difference over time.

But the revenues didn't grow as planned.

After four years of spending more than the district received, the board is looking for ways to turn around the budget and again build cash reserves.

In January, Dr. Dan Tallent, superintendent of schools, will present to the board some options for curtailing spending. The turnaround likely will take two years, but can be done without raising taxes and without abandoning the district's master plan, he said.

"We're not going broke. No one is going to be fired. We're not looking for a tax increase," Tallent said. "We just need to tighten our belts a little."

Tallent will look to large programs when making recommendations for savings. "I want to look at solutions that don't nickel-and-dime programs," he said.

In fact, the school budget approved this week shows some efforts already in place to curb spending. Growth in spending for the previous fiscal year was more than 6 percent; 2.7 percent growth is projected for the current budget.

"We have tried to do this last year and this year gradually," Tallent said. "We could cover the deficit spending for another year and draw down our balances to about $1 million, but I don't want our balances to get that low."

Although currently low, the district's balances are in compliance with state law. The balances, which are about $1.1 million, equal about 7.5 percent of the operating budget.

State law requires districts to keep balances above 3 percent of the operating budget at the close of the fiscal year. When they don't, a district is designated financially stressed and it must freeze spending to build reserves.

This month for the first time ever the board approved borrowing money to pay bills rather than continuing to deplete the cash reserves. A line of credit, which will cover up to $1.2 million in expenses, must be repaid during this fiscal year.

Ervin said any recommendations considered by the board should protect the quality of programming.

"The prospects of us getting into the depths of the debt we're in right now was not anticipated," Ervin said. "The board is depending on the administrators to make recommendations that don't harm the academic integrity of the district."

The district will continue to carry out the master plan that will be financed by a bond issue and Proposition C waiver approved by voters in April. The plan includes construction of an elementary school and other capital improvements, along with new and expanded educational programs.

Previously, the board disbanded its finance committee. Tallent said all board members now serve on that committee so that no one is "screening information before it goes before the total board."