CAT Tracks for February 17, 2003 CSD #1 FOP NAMED

The Southern Illinoisan reports the latest on Cairo School District Number One...

FINANCIAL OVERSIGHT PANEL FOR CAIRO NAMED

BY JOHN D. HOMAN
THE SOUTHERN
[Sun Feb 16 2003]

CAIRO -- Step one in remedying the financial difficulties faced by Cairo School District No. 1 was implemented this week by State Superintendent of Education Robert E. Schiller.

Schiller announced the appointment of three veteran educators to the financial oversight panel for Cairo.

Jack D. Hill, president emeritus of Shawnee Community College in Ullin, was designated to serve as chairman of the Cairo FOP. Schiller also appointed David W. Hindman, retired superintendent of Herrin School District 4, and Samuel W. Harbin, former superintendent of Meridian School District in Mounds.

"I expected to hear something (soon)," said Cairo Superintendent of Schools, Dr. Robert Isom. "It looks as if we're moving forward. The next thing would be to meet with members of the financial oversight panel and give them whatever information they need to make their best determination or judgment.

Isom added that he expects to meet with members of the Illinois State Board of Education this week.

The ISBE acted February 6 to approve the Cairo School Board's petition requesting a financial oversight panel and emergency financial assistance.

"I am pleased that these three veteran educators have agreed to devote their time and expertise to the task of restoring the financial foundation of the Cairo school district," Schiller said. "While this district's financial problems reflect those of many other districts in the state, it seems clear that funding to complete the school year will not be available without state assistance."

Hill is currently the chief executive officer of East St. Louis Community College Center and also serves as executive director of the Southern Illinois Collegiate Common Market in Herrin. He was president of Shawnee Community College from 1991 to 1996 and has been designated president emeritus since that time.

Hindman was superintendent of Herrin schools from 1992 to 2000, after serving a four-year term as the elected regional superintendent of schools for Williamson County.

"I was notified of the appointment earlier in the week by the ISBE," Hindman said. "It's an honor and a challenge. I'm looking forward to working with the other two committee members, as well as Dr. Isom and the Cairo school board."

Hindman said he is presently reading up on the state code which outlines the goals of the oversight committee.

"The next thing we will probably do is sit down, as a committee, and glean as much information about the problem as we can. We will then attempt to develop a plan to help Cairo get out from its financial problems. I'm hoping that we can make a positive change for the district."

Harbin served seven years, from 1986-1993, as superintendent of the Meridian School District and earlier in his career was a teacher and principal at Cypress Grade School.

The Cairo FOP will work with the Cairo School Board to develop a financial plan for completing the school year and for the long-term stability of the district. The financial plan, as well as every financial transaction of the district, will have to be approved by the FOP. The FOP will be in place for no less than three years and possibly up to 10 years.

State board staff members have been working with the district to analyze its current funding status. With that information, Isom concluded the district "was in the midst of a major financial crisis."

As of December 31, 2002, the district was utilizing restricted funds in excess of $60,000 to meet ongoing operational expenditures.

In January 2003, the district issued Tax Anticipation Warrants totaling $414,000, the maximum allowable by law. Current financial projections indicate that the district will likely exhaust all available resources in its three operating funds within the next 60 days.

By that time, the district will need to secure a line of credit for an additional $400,000 to $500,000 to meet current year operating expenses. Under the law, the panel may recommend an emergency financial assistance grant from the state of $230,000 and an emergency financial assistance loan of $900,000.

The state board could provide the grant from funds remaining in the Emergency Financial Assistance Fund if the FOP concludes it is needed. If the panel recommends the emergency loan, it would require additional appropriations from the general assembly and governor.

Cairo is the sixth district to operate with an FOP. Mount Morris, the first district to have an FOP, has since annexed to another district. East St. Louis School District 189 in St. Clair County has operated with an FOP since 1994.

john.homan@thesouthern.com