For the first time in six years, officials in the Cape Girardeau School District expect to receive less money from all sources of revenue than they received in the prior year.

At its meeting tonight, the Cape Girardeau School Board will consider approval of a budget with $2.26 million in deficit spending for the current school year -- the result of cuts in state funding and local property valuations that fell below projections.

The deficit spending will leave the district with a projected $2.5 million in fund balances -- that's 7 percent of expenditures -- at the end of the school year.

Under state law, districts that fall below 4 percent in fund balances are labeled financially distressed and may lose local control to the state.

"This is not a situation we can continue," said chief financial officer Rob Huff. "We can do it this year and next, but the following year we'll be broke. So we have that amount of time to fix it."

The process of fixing it will begin Oct. 27 with the first meeting of a recently formed finance task force. District officials have asked the task force, which is made up of school employees and community members, to make $2.2 million in cuts to the school budget.

With an expected decrease in state aid this year of around $800,000 and a less-than-anticipated increase in local tax revenue, district officials have found little concerning the budget to smile about lately.

Trish Schneider, president of the local Community Teachers Association, said the tight budget and impending cuts from the task force have made this year stressful for teachers as well.

"Teachers are concerned about the programs and jobs that may be cut," said Schneider. "There's a sense of urgency."

Huff said he's hoping the district's actual balance at the end of this year will come out $500,000 higher than he's projected in the budget.

"A budget is a prediction, it's not an absolute, this will happen," he said. "But with the turbulence at the state level, it's become pretty difficult to predict."

cclark@semissourian.com

335-6611, extension 128