NEW HAMBURG -- The Kelso C-7 School at New Hamburg has become the latest to join a list of area schools involved in a strategic planning process.

A citizens advisory committee is being formed to evaluate the elementary district of 157 students, said Superintendent Darryl L. Sauer.

The committee is planning its first meeting in January to discuss possibilities of a local tax increase and a new school building.

The Cape Girardeau Public School District is planning a community survey this month and an educational summit in January to kick off its long-range planning efforts.

The public school district in Delta is reviewing facility needs and plans to have a report at the December meeting.

Sauer said the advisory committee is partly a result of state funding cutbacks and also a result of the failure of Proposition B, a statewide education tax defeated by voters in November.

"With Proposition B going down, we really need to look at our situation. We need to look out for ourselves," he said. "We just need to make some short-term and long-term goals and decide where we are headed."

Sauer said his district has strong support in the New Hamburg community.

"The school district belongs to the people," Sauer said. "I sent out a survey last year asking residents about the school. Most want to keep the district."

But he said budget problems have cropped up. Kelso C-7 has an annual budget this year of $650,000.

The district, like most in the state, is spending more than it is receiving this year. The district has money in reserve to cover that shortfall.

One of the first questions the committee will be asked is about a possible local tax increase, said Sauer.

"We will also possibly look at a building," he said. "Our building was built in 1938 and is really outdated."

The district currently has a tax levy of $1.25, the lowest rate allowed by Missouri law.

Sauer said surrounding school districts have tax rates ranging from $2.25 to $3.27.

"I wish to stress that the school district is financially solvent," he said. "But we cannot continue to exist if we have to dip into our reserves each year to pay our expenses.

"We do have a low tax rate for the district, and our costs keep going up."

For example, the district pays tuition for all its students to attend high school at neighboring schools.

"We have real good relationships with the schools, but the tuition costs go up about $100 to $150 a year," he said.

The district pays tuition for 77 students this year, paying between $2,650 and $2,900 per student.

"That is considered a good rate," Sauer said. "It would cost over $3,000 to educate these students, more than likely."

Sauer said the committee will also discuss class size. The district has some double classrooms, two grade levels with one teacher.

"We are just now getting in the planning stage of the committee," Sauer said.

Letters have been sent home with students asking for volunteers from both Kelso C-7 in New Hamburg and from St. Augustine Catholic School in Kelso.

St. Augustine School educates about the same number of students as the public school.

The Kelso C-7 Board of Education is scheduled to discuss the committee at its meeting Tuesday.

Thirteen people have volunteered to serve on the committee.

Those who are interested in serving may call the school at 545-3357 or send a letter to Sauer at Route 1 Box 539, Benton, Mo. 63736-9749.