CAT Tracks for December 27, 2002 Article from The Cairo Citizen

Cairo School Board faces $1.4
million debt by end of school year

Just months before the Cairo School Board decides if they will risk a third attempt at passing a school building bond referendum, the group received a bleak financial report at their Dec. 19 board of education meeting.

The report, based on projected cash flow for the rest of the school year, shows that at the end of November, the district's ending cash balance was a negative $74,000, projected to grow to a negative $350,000 by the end of December and to a negative $1.4 million by the end of the school year. While the district's ending cash balances are in negative figures, the over-all district account is not in negative figures.

The projected debt is based on the current rate of monies coming into the district's coffers.

The district is currently owed $500,000 by the state for various school programs and the board isn't looking to receive that funding anytime soon as Superintendent Robert Isom told the board the state is "running significantly behind."

Adding to the financial woes is the fact the district has dipped into designated funds - funds that were received and earmarked for specific projects and were not to be used for anything else.

December's expenses will top $644,000 while the projected income for the district will be about $298,000, the board was told.

Financial officials have spoken to state and regional education officials and the district can expect a second state aid payment of $147,000.

As of Oct. 31, the district's various fund balances totaled $1,751,459. The district's funds are all in one bank account and there is sufficient funds to cover any checks issued out of the account, according to the board.

The board did receive word that the district could receive $117,000 in early childhood funding as early as January.

Isom reported he talked to the State Board of Education and the district will not receive four state aid payments in June as in the past. He told the board the district "may receive two payments if that."

Isom reported that there are 63 districts in the state that are in serious financial trouble with 20 expected to go bankrupt. "Cairo is not in the 20 - yet," Isom said.

The board talked about issuing tax anticipation warrants and state aid anticipation warrants and voted to discuss the matter further in a special Jan. 9 meeting. The meeting will be held at 5 p.m.

"If the district only paid salary, benefits, transportation and utilities, we still wouldn't have enough funds to cover our obligations," said Isom.

If the district receives every dime it should have received by June 30, the district will still be seeing red to the tune of about $500,000.

The board, in hearing various correspondence read by Isom, also learned that the Department of Public Aid may be tapping into some of the district's funds - due to an overpayment the department made to many school districts. According to the letter received from DPA, the department discovered the problem during a recent audit and will be deducting overpayments after the first of the year. DPA did not, however, indicate to the district how much the overpayment was or how much of the overpayment they will be taking at one time.

The board also learned that their unemployment insurance rates will be raised in January.

Isom did give the board some good news, however. He reported he has received notice that a private donor will be making a $75-80,000 contribution to the district.

The board did mention considering asking the State Board of Education for an oversight panel. Isom told the board the state board said that it would look more favorable if the panel was requested. Isom said with the panel comes money. "The panel will determine how much money is needed to bail out the district and then will help manage the district," Isom said.

The board was told that anticipation warrants will help get the district even with some funds, but it's not a long term solution.

Griggs stated he wants to know how the district can get out and stay out of the debt crisis.

The board acknowledged the district has cut "to the bone" in personnel and can't run a quality program if they cut any more personnel.

Of the 65 teachers the district employs, approximately 30 teachers are paid through grants.

The board acknowledged that they are facing a crisis and that they should implement a plan to reduce costs.

"Hope doesn't do a thing for a financially impoverished district," said Isom. "We can't continue just to hope things will fall into place."

Griggs asked Isom why he hadn't been telling the board of the financial problems. Isom said he has been telling the board, but this was the first time the big picture has been presented.

"Vital bills will continue to be paid," said Isom.

Moving onto other issues the board voted not to act on the adoption of the risk management plan. Isom suggested to the board they not act on the plan and asked for authorization to bargain with the unions since the plan would require adding language to the job descriptions and the Cairo Association of Teachers wants to bargain due to the impact of the added language. The board also authorized Isom to bargain with the unions.

Board member Vernon Stubblefield reported he has scheduled a meeting with the architect and bond handler concerning the proposed new building specifications. Stubblefield said the district should work on a creative funding strategy to reduce the taxpayer burden. The meeting will be held at 9 a.m. Jan. 3 in Marion, Ill.

The board reported the district's initial tax levy is lower than last year's levy.

The board received a report on the bleacher inspection at the high school and junior high school. The estimated repair at the Junior High will cost $110,000 and $106,000 at the High School. The district will continue working on the bleachers little by little.

The board voted to approve the price quote from Levill Pest Control for pest control at all buildings. The district will pay $240 per month which will include semimonthly pest control in the food service area and call backs at no additional costs. The board reported that this amount is what they are currently paying.

Special guests addressing the board included Jimmy Wissinger representing the Cairo Revitalization Committee.

Wissinger asked the board for permission for various area contractors to look at problems at the various school buildings and see what it would take to fix those problems.

Griggs asked Wissinger to provide a plan to help the schools before giving permission for the walk-through. Wissinger explained to Griggs the group would have to look at the schools before they could develop a plan.

Stubblefield told Wissinger he was not opposed to the offering of assistance. Isom told him that funding will still be an issue.

"The study can still be done," Wissinger said.

Griggs told Wissinger that the district would also need volunteers to do some of the work that needs to be done that the district doesn't have the funding for. Wissinger told the board that a new building will not cure the ills of the district.

Isom agreed to meet with Wissinger to further discuss the issue.

School principal reports

Emerson Elementary - Nov. average attendance rate 95 percent. Pre-K through 2nd grade - 258 students enrolled. 1st grade students went to Daystar Care Center on Dec. 16 to sing songs and the Kindergarten went on Dec. 18. The school also distributed several coats to needy students.

Bennett Elementary - Nov. average attendance 96 percent. Students enrolled - 183. The students collected 1,904 canned goods for their annual food drive. Thirty-eight students will attend the Jan. 4 SIU game, including Bennett's Best, A Honor Roll and those with Good Citizenship awards. Twelve coats were also collected and distributed to students.

Junior High School - Average attendance 92.1 percent. Students enrolled - 185. Girls basketball record stands at 1-2, Boys varsity - 14-0. More than 100 students went to SCC to watch the Chinese acrobat presentation.

High School - Average attendance 91.8 percent. Students enrolled - 204. Discipline is still a problem according to principal Carl Riley. The homecoming has been scheduled but still negotiating a new time for the basketball game.

The board was notified that three schools in the district were on the academic early warning list. The schools, the high school, junior high school and Bennett Elementary, were placed on the list after students performed poorly on state standardized tests in reading and math the past two years. In 2001, 14.6 percent of high school students met or exceeded the state standards in reading and math. In 2002, the high school recorded a 0 percent since the students did not take the tests. The junior high school students scored 28.9 percent in 2001 and recorded a 30.6 percent in 2002. Bennett students showed slightly more improvement with a 38.1 percent in 2001, up to 46.2 percent in 2002.

Schools with less than 50 percent meeting or exceeding the state standards are placed on the watch list.

The custodians' representative asked the board if the group could have Christmas and New Year's Eve off work. The board had approved the days off in previous years. Stubblefield reported it is in the board policy. The board voted to approve the days off.