
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, November 24, 1995                   TAG: 9511240060
SECTION: VIRGINIA                    PAGE: B-4   EDITION: METRO 
SOURCE: 
DATELINE: VIRGINIA BEACH                                LENGTH: Short

VA. BEACH SCHOOLS FACE DEFICIT

Having run up a $12.1 million deficit in the past school year, the Virginia Beach School Board has learned it faces an $8.6 million deficit this year.

The report Tuesday to the board laid the blame on the same source as last year's deficit: overestimating state and federal revenues.

Interim Superintendent James Pughsley was cautious about the projection, saying the administration would update the board in January when more information becomes available.

``It could change,'' he said. ``If the information we heard this evening stays where it is, then obviously it could have a negative impact. If it were going in the other direction, then our projection might improve.''

It is against state law for a governmental body to end the year with a deficit. The Virginia Beach Circuit Court on Monday granted Commonwealth's Attorney Robert Humphreys' request to empanel a special grand jury to investigate last year's deficit.

Although the district has seven months before the end of the fiscal year to make up the projected $8.6 million shortfall, Tuesday's report reveals that this year's budget problems are getting worse, not better.

- Associated Press

by CNB