THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, February 7, 1996 TAG: 9602070410
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY ALETA PAYNE, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 79 lines
The School Board Tuesday night looked at more than $4 million of potential budget reductions as a last resort to offset a revenue shortfall that could send the district into the red for a second year.
Board members voted 10-1 to send the list to the City Council with a request for a commitment to fund the potential $4.4 million shortfall and with the understanding that the School Board would have to return to the list - which would be a public relations nightmare for the school district and the city - if no additional revenue was forthcoming.
Among the items listed: one day of unpaid leave for all staff, which would save about $1.5 million, closure of all departments and schools at the end of the school year, which would mean employees who normally work through the summer would not get paid, a savings of $1 million; elimination of spring athletics, a $360,000 savings; cancellation of before- and after-school activities including child care, saving $100,000 in utility costs.
``I don't like it at all. I don't want to affect the kids in the schools any more,'' said board member Tim Jackson. But he and most other board members acknowledged that the list had to be discussed.
Said Interim Superintendent James L. Pughsley, at his last board meeting before leaving the district at the end of the week, ``There is no way we can make significant cuts, and programs, services, and people not be impacted.''
Board members stressed that they don't want to see staff or students bear this burden, but are clearly trying to avoid the embarrassment of another crisis like the $12.1 million shortfall at the end of the past fiscal year.
By sending their request to the City Council, they are continuing a discussion that affects the future of the school district. But they are also sharing the heat on decisions that stand to impact staff and students to a degree not before felt in the district.
The School Board also approved a six-year capital improvement plan that includes $302 million in new construction and renovations and improvements on existing district buildings.
The board voted 9-2 on the long-term construction proposal, which exceeds city projections by $56 million over six years.
School Board members were told that the additional money reflected increased construction costs. At a council meeting Tuesday, council members criticized the proposal because they said it included new projects that boosted the cost. The council ultimately would have to find the money for these costs.
The construction budget proposal includes $20 million in improvements to eight schools with indoor air quality problems and almost $16 million to complete the relocation of Linkhorn Park and Seatack elementary schools. City officials agreed to move the schools in negotiations with the Base Realignment and Closure Commission to keep N.A.S. Oceana in Virginia Beach.
According to city officials, however, the plan would cost more than the city expected because of projected construction cost increases for a high school, a middle school and indoor air quality improvements; and because of a new $37 million program to modernize the district's eight oldest elementary schools.
Council members said the budget proposal suggests the School Board is not yet facing the reality of tough financial times.
``We need to separate the nice from the necessary,'' said Council member and former mayor Harold Heischober, quoting a phrase coined by fellow council member Barbara M. Henley a decade ago. ``The nice to have and the need to have, those lines have crossed.''
E. Dean Block, who heads up the city's budgeting process, said the council which is required to approve the plan, is faced with three alternatives:
Come up with the additional money by borrowing more. That could risk the city's credit rating, making it more difficult and expensive to finance projects.
Hold a referendum to get voter approval for the additional spending and to increase the amount of money the city can borrow.
``Reduce, reschedule, reprioritize'' the district's spending plan to bring it more in line with the city's ability to pay. MEMO: Staff writer Karen Weintraub contributed to this story.
KEYWORDS: VIRGINIA BEACH SCHOOL BOARD BUDGET by CNB