TICKING AWAY: CAPE GIRARDEAU BOARD OF EDUCATION MUST MAKE FINAL BUDGET DECISIONS BY JUNE 30

With fewer than six weeks left in the current fiscal year, the time for making budget decisions is drawing near for the Cape Girardeau Board of Education.

"We're obviously using a sharper pencil when we're looking at all the things presented to us," said Dr. Ferrell Ervin, president. "It's not going to be an easy task because the board has to make sure we provide a good, quality education for students. The real question is what kind of school do we want."

School board members must take action by June 30 to cut about $1 million in spending from the next school year's budget, which goes into effect July 1. At a June 1 meeting, the board will review proposals and data it has received in the past three months regarding how best to achieve that goal.

The district must cut $1 million because it has been spending more money than it has taken in since fiscal year 1995, and the result is a fund balance that is lower than state recommendations.

The state recommends that school districts have an operating fund balance -- which covers all district expenses -- that is equal to 10 percent of what is spent during a fiscal year so that enough cash remains on hand to handle emergencies and unexpected costs. The Cape Girardeau district is projected to have about $1.8 million left on June 30, roughly 7.3 percent of its expenditures.

More importantly, school administrators project they will have deficit spent about $1 million from the district's general fund, which is the main account used for paying monthly bills and salaries. That fund's estimated remaining balance of $428,315 is far below the comfort level for a district of Cape Girardeau's size.

Numerous recommendations have been made by district administrators, employees and patrons regarding how best to cut the $1 million. An estimated $200,000 in savings from an early retirement incentive approved earlier this year, as well as a projected $500,000 increase in local revenue next year, leaves board members with some $300,000 remaining to be cut from the next budget.

However, the increase in local revenue may mean a reduction or smaller-than-anticipated increase in state funding as new legislation alters the way state allotments are made.

"We have not seen a final, complete copy of the bill, and all projections about our school district have been made using last year's budget and local tax rate," said Dr. Steve Del Vecchio, business manager. "We need to see the final legislation and run the numbers before we can say how we'll be affected."

In its upcoming meeting, board members will consider suggestions such as freezing spending, including all salaries; eliminating or reducing staff positions; and reducing funding allotments to various budget items.

Although the decisions will result in a one-year plan for reducing spending and improving balances, Ervin said a long-term plan which includes community involvement will be necessary to keep the district from having a recurring problem.

The community will have to step up its participation, which may mean an eventual increase in local financial support, he said. However, involvement in all ways, including making budget reduction recommendations, will also be needed on a consistent basis to help provide a quality public education, he said.

"I think the community itself has not realized really the problem the public schools have," he said. "It's clear that the amount of revenue that comes from the community to support the school is not sufficient to meet the expectations of what the community wants the school district to provide."

The board is not as quick to buy into expenditures unless it can see sharp benefits, Ervin said. "That's good for the board and the community because we are elected to oversee the responsible handling of public education funds. Now we know how we stack up against other districts and hopefully, more people will recognize now it is an expensive proposition to educate our children."