JACKSON BOARD EDUCATION ADOPTS $12 MILLION BUDGET

JACKSON -- The Jackson Board of Education Monday adopted on a 5-0 vote an almost $12 million amended operating budget for the school district's 1991-92 school year.

The new budget compares with operating budgets of $8.8 million adopted for 1987-88 and $10.5 million for 1989-90.

The budget anticipates the district will spend $500,000 more than it collects in receipts, but the difference will be made up from surplus balances in last year's budget and transfers from the tax levy.

The new budget calls for the transfer of nearly $200,000 from the general fund to the special revenue (teachers) fund to make up a projected negative balance in that fund on July 1, 1992.

The budget year began July 1 with a surplus balance of a little over $2.5 million. It anticipates receipts of $11,284,531, and projected expenditures of $11,927,933, for a projected July 1, 1992, balance of $1,927,933.

Business Manager Howard Alexander said uncertainties concerning the amount of future state funding is an unknown factor in the budget.

"It's difficult to write a budget message when you really don't know what to write," he said. "We still do not know what will happen as far as the state is concerned. These are the best figures available at the time. We feel these are realistic figures and hopefully we can stay within that budget," he stated.

In his budget cover letter to the board, Alexander said conservative financial management has allowed the district to maintain its present level of operation without cuts in programs for the 1991-92 school year. "Prudent financial management will continue to be a key to maintaining quality basic educational programs in the district," he said.

Alexander said the final paragraph of the 1990-91 budget is still appropriate: "The next few years may be the most challenging for our district financially, unless new monies become available. Cooperation on all sides will be important to assure the challenge is met."

Alexander said the June 30, $2.5 million balance was made possible because the district spent less than anticipated and received slightly more in receipts. "We had projected that we would be dipping into balances last year, but we spent about $900,000 less than anticipated and brought in a little more money than expected," he explained.

Alexander said a portion of the tax levy will be transferred from the capital projects fund to the general and special revenue funds to make them more stable.

"The only fund that I personally see that's in danger this year is the special fund," he said. The special revenue fund, which pays teacher salaries and benefits, started the new budget year with a balance of $127,000, but is projected to wind up with a negative balance of $191,000 on July 1, 1992.

To bring the fund up to zero, Alexander said $191,000 will be transferred from general revenue.

"That is not a very good position to be in," he said, "but it's one that we knew six months ago was going to happen. So it's no big surprise. But it's in better shape than we expected six months ago."

Alexander said the only increase in receipts this year is from local taxes. "There was a significant ($5 million) increase in assessed valuations within the school district. That will help greatly," he said.

Alexander said most of the increases in the new budget will go toward salaries and benefits.

Despite the tight budget and negative cash flow, Alexander said the district still is in much better shape than many other area school districts.

"With one exception, we are in better sound financial condition than most Missouri school districts," he said. "The Missouri commissioner of education now predicts between 50 and 100 school districts in the state will be bankrupt at the end of the current school year.

"Thankfully, we've had some balances to fall back on. Hopefully, with some very prudent spending, we'll make it through these next few years."

Alexander warned that his positive outlook could change if Proposition B fails at the polls next month. "After the November vote, it could be a very serious time if the proposition doesn't pass," he said.

School Superintendent Wayne Maupin told the board he is seeing a growing awareness and support for Proposition B in Southeast Missouri, including within the Jackson School District.