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

DATE: Tuesday, March 5, 1996                 TAG: 9603050179
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY ALETA PAYNE, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Medium:   98 lines

KERNUTT, TAYLOR QUIT BEACH BOARD; JACKSON VOWS TO STAY PUT TOLENTINO IS ONLY ONE WHO HASN'T DECIDED

Two more School Board members resigned Monday, but a third vowed to remain as the fallout from a special grand jury report into the district's finances continued.

June T. Kernutt, the board's chairwoman, and Joseph D. Taylor said in a joint interview that they would step down on May 7, although they strongly disagree with many of the grand jury's findings.

Tim Jackson, however, said he would not resign despite Commonwealth's Attorney Robert J. Humphreys' plans to prosecute those who do not leave their seats.

``We're going to have a great day in the court system, if I go to court,'' Jackson said to the cheers of several dozen supporters surrounding him at a late afternoon press conference in front of Kempsville High School.

On Wednesday, the much-anticipated report from the special grand jury severely criticized former Superintendent Sidney L. Faucette, Mordecai L. Smith, the director of budget development and the bulk of the School Board for the district's fiscal crisis. Although it said that Faucette was essentially out of reach of any local consequences, the report called for Smith and seven board members to resign or face indictment on malfeasance charges.

Two days after the report was released, Faucette resigned from the superintendent's job in Gwinnett County, Ga., which he had held for eight months. On Thursday, Ulysses Van Spiva and D. Linn Felt announced their decisions to step down; Elsie M. Barnes made her announcement on Sunday.

Jackson called on the others to rescind their resignations, and he quoted from the Bible on the importance of a man's good name.

``The request of the grand jury for Tim Jackson to resign is hereby denied,'' he declared. ``I will not resign as a member of the Virginia Beach School Board.''

Jackson, a counselor and staff member of Rock Church in Virginia Beach, called the report slanderous, mean-spirited and divisive. And he said a study of videotaped records of board meetings would show that probing questions were asked of Faucette about the division's financial health.

``Thank God for videotape,'' Jackson said. The board was consistently reassured ``that the district would end the year with a surplus.''

Humphreys said he would pursue charges as suggested by the special grand jury, as early as April.

``They're welcome to ignore the grand jury's report,'' he said Monday. ``I won't.''

Both Kernutt, a former teacher, and Taylor, vice president of Taylor's Do-It Centers, said they were stunned by the language in the report which described the seven board members as ``unfit for further service.''

``I think the report was vicious,'' Kernutt said. ``I think the same point could have been made,'' without the tone.

``I think the jury lost perspective of us as lay people,'' said Taylor. The board relied on staff, as the experts, for accurate information.

``It would have taken a huge step for me to stand up and say `I don't believe you' to three or four administrators,'' he said.

``Our job was to hire people,'' said Kernutt. ``I guess if anything that was where we needed to be more vigilant.''

Only while working through problems with this year's budget have they learned to recognize the signs of serious financial trouble, they said.

While emphasizing that none of the board members deserved to be indicted, both said they objected to the report painting them with the same brush as others on the board, particularly because both Taylor and Kernutt voted against the reinstatement of Smith. Both saw it as a flashpoint for the harshest of the jurors' criticism.

By remaining on the board until May 7, they said they hoped to provide some sort of transition for incoming board members.

The board needs at least six members to carry on business. Humphreys said he was willing to allow members to stagger their final date on the board as long as they announced their resignations.

``I don't want the School Board to get below the magic number of six,'' he said. He said May 7 or 8 would be the outside limit for those leaving.

Seven seats are up for election on May 7. Those elected could immediately begin to serve.

While most board members have submitted their resignation letters to Kernutt, she submitted hers to superintendent Timothy R. Jenney. ``While my strong personal desire is to fight to clear my name, I must, as always, put the welfare of the school division ahead of my own,'' Kernutt wrote.

In his letter, Taylor wrote: ``Although the grand jury's finding of malfeasance is totally unfair and refutable, I must do what is in the best interest of our city and our great school system to move us all in a healing direction.''

Ferdinand V. Tolentino, the only remaining board member whose resignation was called for but has not announced his intentions, said on Monday he had not yet made a decision. ILLUSTRATION: Board Chairwoman Kernutt, top, and Taylor said they will step

down May 7.

Jackson called on other board members to rescind their

resignations.

KEYWORDS: RESIGNATIONS GRAND JURY INVESTIGATION VIRGINIA BEACH SCHOOL

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