SCHOOL SPENDING

The Cape Girardeau School Board has approved a $22.6 million budget for the coming school year. The budget expects expenses will exceed revenue and dips into district reserves by $550,000.

While deficit spending isn't advisable, the district certainly has ample reserves built up: $4.1 million. This amount represents about three months of district operating costs. Even after making up the anticipated shortfall, there is a reasonable financial cushion for the district. It is sometimes difficult to achieve that delicate balance between adequate reserves and sufficient resources.

The district has deficit-spent before, resorting to noticeable cuts in the mid- to late-1980s to balance the budget. The $4.1 million fund balance this year was surpassed only once in the last decade when it reached nearly $4.4 million in the 1989-90 school year.

State funding continues to be a soft spot in the school budget. The fact the Cape Girardeau district is a "hold harmless" district has been well publicized. That means the district cannot receive less than the revenue per eligible pupil in the 1992-93 school year from the state: $739 per pupil.

But the fact that enrollment has been dropping has produced a substantial shortfall in state funding to the tune of more than $700,000. Average daily attendance this year is 3,842, about 125 students fewer than in 1992-93.

Less publicized is the fact that despite this financial shortfall, total state funding is expected to increase next year due to growth in other state revenue. Local revenue also is up, because assessed valuation continues to rise.

In fact, revenue from all sources to the district has increased by more than $1.5 million since the 1993-94 school year.

Expenditures have grown even more. Total district expenses have increased by more than $2.8 million since the 1993-94 school year.

The budget reflects a healthy school district with growing resources and growing demands on those resources. If total expenditures for next year are divided by the number of students served, it shows an impressive $5,765 spent per pupil, achieved through a mix of local, state and federal funds.

Although the 1995-96 budget dips into reserves, the overall financial picture remains solid. If enrollment continues to drop, the board may find it increasingly difficult to balance both rising revenues and expenditures.