The Jefferson City Public Schools have managed to keep faculty salaries high and student-teacher ratios low despite being one of the most-underfunded districts in the state, the Board of Education was told Monday.
Jason Hoffman, JCPS chief financial officer, said he feels a perception exists that Jefferson City is one of the wealthier, well-funded districts in the state. "It's just not the case," he said.
Hoffman warned board members: "We cannot expect to be the very best at everything with our current resources."
He noted Jefferson City is in the bottom quartile in per-pupil expenditures in Missouri, and the Show-Me state isn't a generous state to begin with.
"Seventy-five percent of all districts in this state spend more per pupil than we do," he said.
Last year, JCPS spent $10,182 per pupil, compared to the state average of $12,964.
"We'd have to spend $25 million a year more to be considered average in Missouri," he said. "I seriously don't know what we would do if we had $25 million more to spend."
Hoffman attributed the situation to the district's relatively low local tax levies. Two-thirds of the districts in Missouri have higher tax rates than JCPS.
"If we were to levy just the state average, it would generate $4.6 million more per year," he said.
Hoffman said Jefferson City also receives a relatively paltry sum from the state, compared with other districts.
"Only 29 districts receive less state aid, per pupil, than we do," he said. "We're in the bottom 5 percent. We'd need to receive $13 million more per year to be average in state revenue per pupil."
Hoffman said Jefferson City's federal funding also lags other districts.
Despite the low-revenue problem, he said Jefferson City has continued to adhere to it's No. 1 priority: good salaries.
"Our goal is to have the best compensation package in Mid-Missouri," he said. "We want to be the best in this area. We want to put the best teachers in the classroom. And, based on our 2013-14 salary rankings ... we've done a good job."
He said JCPS offers the highest pay for beginning teachers with bachelor's degrees in the central region and the second-highest pay for beginning teachers with master's degrees. He noted that translated into 2,902 applicants for 214 jobs.
"We are getting the cream of the crop," he said.
Hoffman said JCPS also tries to keep student-teacher ratios low.
He said the district's ratios are above state averages - but not by much. He noted Jefferson City has about 19 students per classroom teacher, compared to the Missouri average of 18. The district would have to hire 26 more people to match the state average, he said.
Hoffman's remarks were delivered as part of a preliminary budget update. The board will approve the final document prior to June 30.
He estimated teachers and other staff can expect salary increases of 1.8 percent on average next year. The district's financial situation probably won't allow any more funding to be added to the salary base, he said, but there is enough funding available to allow all of the faculty to move up and across the salary schedule, which is almost a $1 million expense to the district.
He left the window open to a bigger salary boost, if the district's revenues improve this spring.
Economically, he's expecting small improvements in the district's fiscal picture for 2016.
Hoffman thinks - after local property is reassessed this year - the net increase in local property taxes is likely to be $700,000 and he thinks the state aid will probably increase by $600,000 next year. He's also projecting $225,000 in state sales tax revenue and $50,000 in interest earned on the district's accounts.
The total change in revenue for next year is $1.57 million, he estimated.
Hoffman said he's hopeful the extra revenue will allow the district to hire four new teachers next year, another worker to help with computer technology, more certified teachers to help with special education and improve stipends for several faculty members. He noted some Nichols Career Center faculty teach all day without planning periods, and without appropriate stipends.
As for this year, the district appears to be ending the fiscal year 2015 budget in a better position than it started. The original budget called for a $1.4 million deficit; however, after three amendments through the year, the actual deficit will likely be $930,000, he said.
On Monday, the Board of Education approved an adjustment for this year's budget. The changes recognized $220,000 in higher property tax collections, $70,000 in state sales tax revenue and about $180,000 in grant income. The adjustment also included lower spending on natural gas, electricity and diesel fuel, but more on substitute teachers.
The district is expected to end fiscal year 2015 with a fund balance percentage of 21.3 percent - which is above the district's goal of 20 percent. The trend over the next few years is the gently drop balances downward, slightly below the district's goal.
"We've been in the process of spending the fund balance down," Hoffman said.
Board member Steve Bruce inquired about the fund balance.
Bruce suggested using fund balance money to pay bills is essentially like dipping into a household's savings account.
"Unless we have cash readily available to cover what we take out, it would be pretty unwise of this body to ... take on additional yearly occurring expenditures. It would put us in a precarious position," Bruce said.