CAT Tracks for February 25, 2003 INITIAL CSD #1 FOP MEETING

At 1 p.m. sharp, the first meeting of the Financial Oversight Panel for Cairo School District Number One was called to order...

In attendance were the members of the FOP: Jack D. Hill (Chairman), David W. Hindman (Elected Treasurer), and Samuel W. Harbin (Elected Secretary). Also present were three Cairo Board members (Joe Griggs, Brenda Gooden, Marlene Schultz), Superintendent Isom, Constance Williams, two principals (Carl Riley, Lonnie Henderson), Ilene Pierce, two ISBE representatives, three representatives from the Regional Superintendent's Office, and one of our Educators in Residence. Also attending...a reporter from The Cairo Citizen and myself.

The meeting was very routine and followed the previously published agenda.

Following the election of Treasurer and Secretary (listed above), the FOP adopted a regular meeting date, time, and place: The fourth Thursday of each month at 1 p.m. in the Central Office Board room.

Mark Mullins presented a review of the duties and responsibilities of the financial oversight panel...which, in short, is to exercise financial control over the Cairo Board of Education. As was stated later on: "Nothing is final until approved by the Financial Oversight Panel."

A handout was distributed summarizing the Open Meetings Act and its application to the FOP. It was stressed by the ISBE attorney that "Everything must be discussed/done here...not behind the scenes." She issued a disclaimer that this procedure might result in an appearance of "not knowing what we are doing" at times...since the proceedings would NOT be "rehearsed". She went on to say that the FOP might have to call special/emergency meetings at times and that part of each meeting might be conducted in closed session (if it involved contracts, negotiations, or personnel). In other words, meetings of the FOP are public meetings and must be conducted accordingly.

A discussion of a budget for the FOP was put on hold until such time that the Panel could interview and hire a "financial administrator".

Next on the agenda was a "Discussion of District's Financial Condition". Handouts were distributed that showed the financial history of CSD #1 over the past ten years and the "cash-flow crisis" of this fiscal year. From 1992 to 2002, the long-term debt of CSD #1 has gone from $416,000 to a whopping $2,655,000...which means that the District is within approximately $200,000 of its statutory limit! THIS fiscal year began in July 2002 with a "cash balance" of $588,087 and is projected to end with a "cash balance" of NEGATIVE $445,404...a swing of over $1 million!

These numbers are what brought ISBE to CSD #1. (Incidentally, the financial impact...the FINANCIAL LOSS...caused by the District's decision NOT to make up the "17 strike days" last year was AGAIN emphasized. The members of the Panel were informed that that CSD #1 is losing over $30,000 a month THIS YEAR because of that decision! I'm sure YOU can "feel their pain"!)

The FOP then voted to approve the District's request for a $231,000 grant...based upon $250 per District student. This money IS available and should provide some immediate relief...and does NOT have to be paid back. (The aforementioned $1000 per student LOAN is NOT immediately available...as it must be appropriated by the General Assembly. However, ISBE officials have assured CSD #1 officials that they will "go to bat" for us.)

Without much discussion, the FOP approved "District Board Action/Bills Payable". This was NOT surprising since the Panel has just arrived on the scene...and faced a "fait accompli". In the future, we will most likely see much more direct involvement by the FOP in the decision-making process in that they will forewarn the Cairo BOE and administration of what is and is not acceptable, turning them down if they choose not to follow their "advice".

The FOP then went into closed session for approximately 45 minutes.

When they exited, they set a date of March 20th to interview prospective candidates for the position of "Financial Administrator" of CSD #1. This is the person who will be hired to guide/force the District in solving its financial problems.

The first meeting of the CSD #1 Financial Oversight Panel adjourned at 3:05 p.m.

FOOTNOTES:

Remember when ISBE came in with their checkbook in December...anything you need/want to improve test scores...you've got it! Well, it seems that the Cairo BOE...acting upon ISBE concerns about low reading scores...voted to hire a new Language Arts (Reading Teacher) for CHS at last Thursday's regular meeting. THEN...on Friday morning, ISBE notified the District that they were putting a hold on the money promised to pay the salary of said person(s)!

In an unrelated matter, executive session "hallway gossip" - later "confirmed" in a KFVS Channel 12 report - has it that Bunge Corporation in Cairo will be closing in April. Obviously, this is news that the City of Cairo did not need...