Springfield schools brace for state funding crisis

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)()()Broken promises from Missouris legislature are leaving Springfield

Public School District officials searching for funding alternatives. A levy increase is a possible solution, but not one the School Board is committing to just yet.

That is an option and that will have to be analyzed, said Springfield School Board President Jerry Harmison.

School Board officials discussed the options at the March 4 board meeting after learning that the district will likely be short at least $4 million next fiscal year on top of the $1.6 million Gov. Bob Holden pulled from this years bud

get. Holden announced the withholding of $67.1 million in statewide education money in January.

Springfield Schools Superintendent Jack Ernst calls next years expected cuts devastating to the district.

We can anticipate (2003-2004) cut backs from current-year budgets in the range from $4 million to $6 million, Ernst said.

Those are preliminary, but thats what theyre talking about. That would be devastating.

The preliminary 2003-2004 budget presented to the board last week is $11.3 million in the red, after factoring in inflated costs for benefits, employee salaries, transportation, fuel and electricity.

That is our first working draft our worst-case scenario, said Cherie Alderson, director of financial services for the school district. Well

be analyzing each of the components and be giving recommendations to the board.

Ernst said the worst-case scenario would result in staff and program reductions but its too early to say to what extent.

Meanwhile, Harmison is focusing on the April 8 bond vote.

Springfield citizens will be asked to approve a $30 million bond issue to fund capital improvements and general maintenance at a number of schools. Approval also would extend the districts 20-year debt service schedule

approved by voters in 2000 until 2023. A yes vote would not increase the tax rate.

Right now our focus is to try and get the no-tax increase bond passed, Harmison said. My concern is if we start talking about a levy it will scare people off and they will vote no on the bond.

Harmison said the bond issue would not increase tax rates because the proposal spreads the payment schedule another three years, until 2023. The extra time and the regular increase in property assessment values of about 3 percent per year would cover the

debt service, he said. Alderson said the principal of outstanding school bonds is about $86 million.

Regardless whether the bond issue passes or not, the board must present a balanced budget to the state by June 30.

Ernst blames the states budget crisis for the Springfield districts predicament.

They cant give us what they promised, he said.

We built our budget ... and made contracts based upon those promises and then are having to come up with money to cover that now. We have to adjust our budget pretty dramatically.

Ernst said the schools will tap into the roughly $16 million emergency fund to compensate for the $1.6 million loss this year. The district budgeted for $168 million for the 2002-2003 year.

He predicts state funding will comprise about 25 percent of the 2003-2004 budget, creating a need for more local monies. Were becoming more and more dependent on our local dollars, Ernst said.

Harmison said the board had not considered proposing another levy until April 2004, but if the budget is not in line come June the school district may ask voters sooner.

Ernst said its possible the levy could come up in late summer or fall.

Our board is seriously considering coming back to the voters because if not the cuts to the program side would be pretty disastrous, Ernst said.