The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, January 24, 1996            TAG: 9601240430
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Medium:   64 lines

BEACH SCHOOL BOARD, COUNCIL CLASH OVER BUDGET

The City Council's top priority is the fiscal stability of the city; the School Board's is to provide quality education for children.

The two clashed again Tuesday as the council considered a board request for money and the school board lobbied against the council's plans to merge financial controls.

The problems have been exacerbated by the district's $12.1 million deficit last year.

School Board members say council members are acting out of political expediency. Council members say they can't figure out why the School Board hasn't learned from recent mistakes.

The school administration is asking for $57.4 million more than the city had planned to spend over the next six years on new school buildings and other capital projects. School officials say the work is necessary to keep up with student population growth and renovate aging school buildings.

Council members said Tuesday they don't know where to find money to pay for the district's six-year construction plans. E. Dean Block, director of Management Services, suggested the city either spread the expenditures out over a longer period of time, or present them to voters to consider a tax increase.

The council did not pick an alternative, but agreed to discuss the issue in detail on Feb. 6.

School Board member Elsie M. Barnes said she would rather spread out the costs than raise taxes.

``When you couch a proposal in terms of a tax increase it gives it a negative dimension in the public's mind,'' she said. ``I think that perhaps (spreading costs) could be feasible, that would be something that I would be willing to look at.''

The board has not yet approved the spending plan, but has reviewed it since December and not raised major objections, Barnes said.

Anthony L. Arnold, director of facilities planning and construction for the school district, said his department needs the extra money to fund renovations to eight outdated elementary schools, additions to four other schools, construction of a new elementary school, and projected increases in the cost of building a middle and high school in the Lake Ridge area of the city.

The council has been pushing for 18 months to combine the city and school accounting, payroll, finance and purchasing departments. Its demand was fueled Tuesday by a letter from the city's bond counsel, warning that the city's cost of borrowing money could increase if consolidation is not approved soon.

School Board members have resisted consolidation plans. Also on Tuesday, city and school officials clashed in Richmond when testifying before a Senate panel that is considering whether to require consolidation.

Both House and Senate committees decided to postpone a decision on consolidation for at least a week.

City Council member John A. Baum said he doesn't understand why the School Board keeps coming back to the council with requests for money. In addition to making up last year's $12.1 million deficit, the board has said it will need between $1 million and $4 million more to meet this year's obligations.

Barnes said it is the council that is being unreasonable.

``I think too many participants have taken the opportunity to politicize situations that did not have to be politicized,'' she said. ``I guess that's the nature of political beings, but I personally don't care for it.'' by CNB