DATE: Thursday, September 18, 1997          TAG: 9709180366

SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 

SOURCE: BY LANE DEGREGORY, STAFF WRITER 

DATELINE: ROANOKE ISLAND                    LENGTH:  100 lines

DARE SCHOOLS' FISCAL HEALTH WAITS ON AUDIT MANY QUESTIONS POSED BY COUNTY COMMISSIONERS

Dare County school officials closed their accounting books for the 1996-97 fiscal year more than two months ago.

But they still don't know if they have any money left over - or whether they will need additional funding to balance their budget, acting Finance Officer Janice Tillett told Dare County commissioners Wednesday.

In June, the county had to assist the school board by appropriating $305,012 in emergency funds after the education system came up with cost overruns in several areas.

School officials said they thought the emergency appropriation was enough to balance the budget, but they won't be sure until an audit is finished.

``Our auditors are coming Oct. 13,'' Tillett told county commissioners. ``So we can't give you a final accounting of last year's expenditures until that audit is done.''

Commissioners allocated $7.2 million for the school board's 1997-98 fiscal year - $251,440 more than last year.

But on Wednesday, education officials said they probably will need at least another $250,000 to cover costs and fill vacant positions.

During a four-hour workshop at the North Carolina Aquarium on Roanoke Island, school board members tried to explain how they came up more than a quarter-million dollars short in last year's budget - and why they need even more money to cover this year's expenditures.

County commissioners asked dozens of questions. But they received few answers or final figures.

``I'd feel much better if you all could come to us united with a request,'' Commissioner Stan White told the school board as about 50 people looked on. ``Whether it be for $250,000 or whatever, we need to know what you need.''

School officials fired finance officer Becky Wescott this summer. But they have not said why. They are hoping to begin interviewing candidates for the position next week. But in the meantime, other school accountants are trying to balance the books and reorganize their department.

``We've focused on solutions rather than scapegoats since June,'' School Board Chairman Fletcher Willey told commissioners. ``I appreciate this opportunity to mend fences.

``We overspent our budget by $305,000. That's less than 2 percent of our total state and county budget. Like a driver that was going too fast, we just failed to put on the brakes early enough.''

Because county commissioners had asked the school board to reduce its $3 million contingency fund in 1993, education officials said they had no reserve to cover unanticipated costs last year. They needed additional money to pay increased bills for electricity, heating fuel, retirement accounts, transportation needs and supplements for school system employees, they said.

Board of Commissioners Chairwoman Geneva Perry, however, criticized school officials for some of their spending - especially in the supplements they paid non-classroom employees. Although state funds cover most of the education salaries, school board members appropriated an additional $15,000 for the former finance officer and gave Manteo High School's principal a $10,000 supplement.

Superintendent Leon Holleman also reportedly received a $23,000 county supplement above his state salary and a $3,600 travel account.

``I was appalled at those figures,'' Perry said. ``I know our board has tried to give supplements to the teachers. But I do feel those people who aren't teachers should be looked at for how much supplements they receive.''

Although the commissioners fund the school board with tax dollars, Perry said, they have no control over how education officials spend that money.

Dare County has 4,518 students this year.

School board members said they have tried to cut costs in many areas to make up for the deficit. They cited savings of $407,232 by eliminating 13 positions. But later, after commissioners questioned them, they said they wanted to fill the slots for director of school/community relations - a $40,284 post; the personnel director - a $24,000 job; and one remediation teacher - who earns $9,770 annually.

``How can you call those personnel cuts a savings if you're going to turn back around and ask us to fill those positions again?'' Commissioner Shirley Hassell asked.

``Some of them we won't ask to fill,'' school board member Virginia Tillett said. ``We're not going to put any of them back in unless the money comes from somewhere.''

School board members also said they will trim $25,000 from the general maintenance fund. But they later cited many ongoing and additional maintenance needs. For example, Tillett said, they need new tiles in Manteo High School because that school has ``the sick building syndrome.''

Commissioners also questioned how much more money might be needed for school legal fees. But, again, education officials said they could not project a figure. There are ``two outstanding lawsuits against the school system involving exceptional needs children, one personnel situation that we're settling by an agreement and three personnel situations that may become lawsuits,'' Willey said.

Besides their financial woes, school officials seem to have internal strife on their seven-member board. Board member Donna Buxton, who acted as chair until she was ousted in June, said she had not seen the appropriation recommendations Willey presented to commissioners on Wednesday. And she did not agree with the $250,000 figure that he and other board members quoted to cover the additional needs for 1997-98.

``You need to present a united front when you come back to this board,'' White said. ``We need to get this monetary situation straight so we can get on with education.''

School board members and county commissioners plan to meet again by November. If they need another $250,000, county finance officer Dave Clawson said he doesn't know where those funds will come from. Dare County has a contingency fund of about $300,000 for the 1997-98 year.

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