DATE: Thursday, April 24, 1997              TAG: 9704240390

SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 

SOURCE: BY ALETA PAYNE, staff writer 

DATELINE: VIRGINIA BEACH                    LENGTH:   82 lines

DIVIDED BOARD TO LET BEACH COUNCIL DECIDE HOW TO FUND SCHOOLS

Meeting for the second time in days, the School Board refused to endorse a compromise that would have required it to ask City Council to raise real estate taxes.

Instead, a divided board agreed to decrease the schools budget to $415.8 million, a drop of about $6 million from what was originally requested. With two members absent, the board voted 5-4 to ask that the financial plan be funded ``through whatever means that City Council deems necessary.''

To reach that point, board member Daniel Arris took a resolution, drafted by board member Nancy Guy, and eliminated her wording that would have allowed for a real estate tax increase of up to 2.9 cents per $100 of value if necessary. Arris said his motion would leave how to fund the division's budget up to the council.

``If it's the only way the motion can get six votes, I'll support it as amended,'' Guy said. However, she also said she believes the resolution's end result would be a tax increase anyway.

Guy has said she supports a fully-funded budget and that she believes it could be achieved through reprioritizing the city's budget. However, Guy has also said she would endorse a tax increase if City Council decided that was the only option for full funding.

The proceedings became convoluted at times, with motions and substitute motions being offered. At one point, the city attorney had to be consulted to see how many motions could be considered at once.

Guy, Arris, Donald Bennis, Neil Rose and board chairman Robert Hagans voted for Arris' version of the resolution. Board members Arthur Tate, Tim Jackson, Rosemary Wilson and vice chairman Delceno C. Miles voted against. All of those board members who voted against the motion have voiced opposition to a tax increase, so their no votes did not indicate they wanted taxes raised. Board member Paul Lanteigne was out of town, according to a division spokesperson, and board member H. L. ``Les'' Powell had to leave on a trip before the vote.

Municipal leaders could still pursue a tax increase, but it was not certain that they would do so. City Manager James K. Spore said Wednesday that several options for how to proceed had emerged from work on the compromise and that those possibilities need to be discussed.

``I think City Council needs to talk about it,'' he said.

Under a new way of funding schools approved by the City Council in February, the school division would receive a set percentage of some taxes. If the school board seeks additional money, the members must request that Council raise taxes.

The city had offered the division $13 million more for the 1997-98 than the schools received this year. Initially, another $13 million had been requested, but under a compromise hammered out by city and school staff, the gap had shrunk to about $7 million. Covering the remainder of that amount was largely to fall on the tax increase.

School leaders had sought the additional money citing the opening of two new schools, the need to expand programs, employees raises and other issues. Municipal officials had said, however, that fully funding the division's budget without a tax increase would require cutting other services.

In an unprecedented Sunday meeting the board voted against requesting that taxes be raised. Another special session was called for Wednesday so that the compromise could be discussed further.

As on Sunday, tensions were high, and board members made their displeasure on a number of issues clear. Some said they saw no need for a second meeting, others questioned its timing, others questioned whether they had all of the information they needed.

``I believe this meeting is a travesty,'' said Miles. ``A flip flop at this time (on the tax increase issue) . . . is a mistake and a discourtesy to Virginia Beach residents.''

Tate also objected to the proceedings. ``I feel like we've suckered in the general public,'' he said.

Hagans said, however, that the special session was called as a result of a meeting between the leadership of the school system and the city that took place on Monday. Board members would have the opportunity to reconsider or reaffirm their votes from Sunday.

``This meeting has been called because children and education are our business. And without full funding, cuts are likely,'' Hagans said. ``No one on this board wants to increase taxes in the city of Virginia Beach for education. (But) sometimes hard decisions have to be made that are not popular but are necessary.'' ILLUSTRATION: Photo

Nancy Guy's wording about a tax increase was eliminated from her

resolution, giving the council other funding options. KEYWORDS: VIRGINIA BEACH SCHOOLS VIRGINIA BEACH CITY COUNCIL

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