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

DATE: Sunday, February 11, 1996              TAG: 9602090155
SECTION: VIRGINIA BEACH BEACON    PAGE: 07   EDITION: FINAL 
SOURCE: Bill Reed 
                                             LENGTH: Medium:   69 lines

AS THE BOARD TURNS: SOAP OPERA CONTINUES

The school budget soap opera continues to unfold in strange and mysterious ways, and one can only view it with absolute astonishment.

It's something out of Jonathan Swift's ``Gulliver's Travels.'' Brobdingnagian problems, left to the devices of Lilliputian minds, are getting out of hand.

How else can you explain these recent developments:

The School Board on Tuesday reinstated Mordecai L. Smith, the guy who was in charge of financial operations when the school system went into the tank for $12.1 million under former superintendent Sidney L. Faucette.

Smith had been placed on paid administrative leave for five months apparently because he seriously underestimated federal and state financial aid in formulating the 1994-95 budget and shifted money between various accounts without board approval or failed to blow the whistle on his former boss for doing so.

School Board member Susan L. Creamer resigned from the board Wednesday in protest of Smith's reinstatement. The board's ``decision . . . is one I cannot support,'' she wrote to board chairman June T. Kernutt. Creamer was on the board when all the budgetary shenanigans were going on, but she exhibited few signs of indignation at the time.

The School Board on Tuesday put the City Council on notice that the school district might need up to $4.4 million more to complete its operations for the current fiscal year. The reason: school officials once again overestimated federal and state aid and face another big deficit.

And if the council isn't forthcoming with more dough, board members hinted they might have to resort to making 15 cuts in school operations to balance year-end accounts. These cuts could include:

Requiring one day of unpaid leave, June 14, for all 11- and 12-month school employees. These would be school custodians, school secretaries and office staff members as well as school principals and assistant principals.

Closing all departments and schools June 24 to 28 for the same 11- and 12-month employees. This means they would get no pay for that week. (It's unclear whether 11- and 12-month employees would include top school administration honchos with three-piece suits and fat salaries.)

Eliminating spring athletics in schools, such as varsity baseball, track, tennis, soccer and junior varsity sports as well. This would deprive hundreds of youngsters of meaningful and productive activities. For some, it would mean no college athletic scholarships.

Canceling pre- and after-school activities, including child care. The start of summer school and summer recreation programs and school repairs also would be delayed.

The council has agreed to bail out the school system for last year's $12.1 million deficit, but it is digging in its heels on this year's $4.4 million shortfall. Sentiment among members is that more aid might be forthcoming if the School Board agreed to consolidate some of its financial departments with the city's. The School Board says it agrees with the proposal in principle but doesn't want the council muscling into its turf.

Meanwhile, back at the ranch, freshman state Sen. Edward L. Schrock, R-Virginia Beach, is trying to ramrod legislation through the General Assembly requiring the consolidation. A House of Delegates committee has scrapped Schrock's proposal, but he's trying to ease it through the back door in the Senate.

Then we have the special grand jury that is now looking into the school budget fiasco. Its findings should be ready for a public airing by the end of the month and may be revealing. Then again, maybe not.

KEYWORDS: BUDGET VIRGINIA BEACH SCHOOL BOARD by CNB