The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, March 3, 1995                  TAG: 9503030413
SECTION: LOCAL                    PAGE: B2   EDITION: FINAL 
SOURCE: BY MARIE JOYCE, STAFF WRITER 
                                             LENGTH: Short :   41 lines

EVMS EXAMINES EFFECTS OF 15% BUDGET CUT IT'S NO FISCAL CRISIS, SCHOOL SAYS, JUST CAUTION.

Eastern Virginia Medical School's administration has asked department heads to look at cutting as much as 15 percent from their budgets for next year. But school officials say the request is a routine aspect of a conservative budget process, not an indication of lost revenue.

``We are in excellent fiscal condition,'' said Sheila Edelheit, director of the school's public affairs office. ``What we'd like to do is protect our position.''

The school is in the process of drafting a budget for the next fiscal year, which starts in July.

Early in that process, EVMS' 22 department heads were asked to write reports on the effects of a 5 percent to 15 percent reduction in their operating budgets.

President Edward E. Brickell said those reports are still being reviewed, and he doesn't know whether any cuts will be made or what effect cuts would have. The school's board will vote on the budget in June.

Brickell said the school always tries to plan conservatively when projecting expenses for the coming year. EVMS is ``not necessarily anticipating a loss in revenue,'' he said, but some sources of funding, such as the state budget, haven't been finalized.

The state budget initially called for cutting EVMS' allocation by $700,000. Most of the money has been restored, although that could change during the Assembly's veto session April 5.

The biggest chunk of EVMS' revenue comes from care of patients through the faculty's clinical practice. Other sources include tuition, state funding, and private and government grants.

For the fiscal year ending last July, the school's budget was about $144 million. by CNB