The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Wednesday, January 8, 1997            TAG: 9701080358
SECTION: LOCAL                   PAGE: B1   EDITION: FINAL 
SOURCE: BY KAREN WEINTRAUB AND ALETA PAYNE, STAFF WRITERS 
DATELINE: VIRGINIA BEACH                    LENGTH:   72 lines

SCHOOL BOARD WORRIES THAT BUDGET PLAN WILL SEND IT BEGGING

An effort to take the politics out of school budgeting has led to another political battle between the City Council and School Board.

The city came up with a proposal late last year to give the district money based on a fixed formula, allocating a set annual percentage of city revenues for education. That way, the district would know how much money to expect every year and could develop a budget to live within that sum.

But the School Board seemed suspicious of the council's motives.

``They speak of how fair this is, but if you look at it carefully, we have detected a couple of things that may not be advantageous to us,'' Chairman Robert Hagans said.

Board members are worried the set amount won't be enough and they will have to go back to the council and taxpayers to ask for more. Any formula should be a starting point, not an ending point, several board members said Tuesday.

The council was scheduled to vote on the proposal Tuesday but deferred action for a month to try to work out its differences with the board. Council members made it clear, however, that they hope to approve the plan Feb. 4.

Every year when the council works up its budget, the School Board accuses council members of neglecting the needs of children. And every year the council gets mad at the board for asking for more than the council feels it can afford.

Relations between the two bodies worsened a year ago, when the board discovered it had missed its budget by $12.1 million.

Council members say that a funding formula would force the district to budget more responsibly.

Now, the School Board asks for money and the council gives as much as it thinks it can afford, balancing district needs with those of other city departments and the public's dislike for taxes. The council can't tell the district how to spend the money once it hands it over.

Under the proposed change, the city would give the district just over 53 percent of most tax revenues every year, the same share the board got in the 1996-97 fiscal year. The district would get more money as rising home and car prices drive up the city's tax take - but its percentage of city revenue would remain fixed.

If the district needed more than its allotment, it would have to ask the council and the public for a tax increase.

Under such a formula, the school district would get $11.8 million more from the city for next year than it did this fiscal year.

District officials said Tuesday that such a change would barely cover existing commitments, and wouldn't leave the district enough money to provide reasonable raises or staff two new schools opening next year.

During a School Board work session Tuesday afternoon, board member Paul D. Lanteigne said the proposal was a good starting point. Timothy Jackson disagreed.

``I know that change is kind of frightening for some people,'' said Lanteigne, ``particularly when that change brings with it more responsibility and accountability.''

``I have no problem saying (to the council) we need more money for education, if I am convinced everything else is being wisely spent,'' he said.

Jackson replied: ``Under this scenario, you're going to do that every year.''

School officials asked the council to delay approving the revenue-sharing plan until after they have had time to mull it over and get answers to dozens of questions.

``I think we can debate the numbers forever,'' said City Council member Barbara M. Henley, who agreed reluctantly to the delay. ``We need it in place now.'' Council member Louis R. Jones said he hopes the council and board can reach a compromise before moving forward.

``It's not going to work well without the School Board's cooperation,'' he said.

District and city officials met Monday and will meet again later this month to try to hash out their differences before the scheduled Feb. 4 council vote.

KEYWORDS: VIRGINIA BEACH SCHOOL BOARD BUDGET


by CNB