NEW FUNDING LAW BRINGS GOOD AND BAD NEWS FOR CAPE SCHOOLS

There's good news and bad for the Cape Girardeau Schools concerning Missouri's new funding and reform law.

Good news: If Cape Girardeau voters approve a 51-cent tax increase Oct. 5, the higher tax rate will generate an additional $900,000 in state funds.

Bad news: Net state funding for the Cape Girardeau Schools under the formula this year is almost the same as last year.

The new Outstanding Schools Act, also known as Senate Bill 380, will be discussed during today's Board of Education meeting.

"That $900,000 is recurring revenue," Superintendent Neyland Clark of the state money that would be generated by the schools' proposed tax levy increase. "It is also how we would fund operation of a new building."

The new state funding mechanism rewards school districts for high local tax levies. The higher the local tax, the more state funds the district will receive.

The additional 51 cents, if approved, will fund construction of a middle school and other improvements. The tax increase should generate between $16 million and $18 million. The new building would be financed through a lease-purchase plan.

In April, voters turned down a 99-cent tax increase that would have funded construction of a middle school, an elementary school, an addition to Jefferson Elementary School and other improvements to buildings in the district.

The provision in the state law that makes it profitable for school districts to fund construction projects through lease-purchase plans will likely be changed. Clark has been told legislation to tighten the law has already been drafted.

"I don't want to sound like a high-pressure salesman," Clark said, "but it's a now-or-never deal."

While Cape Girardeau is among "winners" in the new distribution plan, Clark says being a winner in this case doesn't mean much.

"This is a shell game with state funds."

This year under the new formula the district receives $2,859,519 in net funding. Last year, under the old formula's minimum guarantee, the district received $2,935,547. That's $76,028 less than last year.

"That is not hold harmless," said Clark. Hold harmless is a provision that protects school districts from receiving less money this year than last.

To make up the difference, Clark explained, schools will receive additional money to be spent on programs to benefit at-risk students. This year, Cape Girardeau will collect $116,285 in at-risk money, bringing the district's funding to $2,875,804. But Clark pointed out that the at-risk money is restricted.

Also on the school board's agenda today is a discussion of a new public school foundation.