CAT Tracks for February 22, 2003 AND STILL MORE...

February 20th's ISBE visit to CSD #1 as reported in The Southern Illinoisan...

STATE STEPS IN TO HELP CAIRO SCHOOLS: EDUCATION CHAIR TOURS CAMPUSES TO SEE THE FINANCIAL PROBLEMS

BY JOHN D. HOMAN
THE SOUTHERN
[Fri Feb 21 2003]

CAIRO -- A committee representing the Illinois State Board of Education visited Cairo Thursday to familiarize itself more with the school district's financial problems.

The Cairo district is in dire financial straits, having spent more than $1 million last year than it took in and having projected an $800,000 deficit by the end of this school year.

"We're still in a fact-finding mode," said Ronald Gidwitz, chairman of the ISBE. Gidwitz and the committee toured both the junior high and high schools.

Cairo Superintendent Robert Isom asked the state board to step in this month to provide financial assistance.

Isom said he feared the district would go broke within the next 60 days had the ISBE not lent a hand.

In January, for example, the district issued tax anticipation warrants totaling $414,000, the maximum allowed by law. The district needs to secure a line of credit for an additional $400,000 to $500,000 to meet current operating expenses.

"Clearly, our staff is concerned about the short-and long-term success of this school district, but it's still too early for any definitive judgments," Gidwitz said. "What I can say is that there's not presently enough money to pay all the bills -- at least not on an ongoing basis."

Gidwitz said some grants may be available to help offset Cairo's deficit. Loans will likely pay off the remainder.

"We have to do what we can to keep the kids in the classroom this year," Gidwitz said. "We don't want them out on the streets."

State Sen. Larry Woolard concurred.

"It's not a matter of choice," Woolard said. "We must be responsive to ensure that every child has access to a quality education. And the ISBE is helping us address this crisis."

Woolard said that because the cost of utilities, teachers, support staff, administrator salaries and benefits packages is fixed, school districts like Cairo have a hard time meeting expenses when incoming revenues have been depleted because of an eroding tax base.

These financial problems cannot be remedied overnight, Woolard said, especially considering the state's budget deficit. But the legislator is confident that the General Assembly will eventually allow for some new dollars to filter down to the smaller school districts.

"It's a difficult position for all of us, but one I still think we can win," Woolard said.

Isom said he, too, thinks Cairo's financial problems can be solved.

"Obviously, there's no instant solution," Isom said. "It's a long-term project, but I truly believe we're on the right track. What we need are additional revenues to survive. In the meanwhile, we're going to take a look at our expenditures again and see what we can do.

"Let me emphasize, though, that I don't think our problem has ever been overzealous spending, but simply a lack of revenue," he said. "Cairo simply no longer has the capacity to generate the kind of moneys we used to have."

Isom said it's been at least 10 years since the school district operated in the black.

Last week, the state superintendent of education, Robert E. Schiller, announced the implementation of a financial oversight panel that 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 oversight panel, which will be in place for no less than three years and possibly up to 10 years.

john.homan@thesouthern.com