ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, March 12, 1994                   TAG: 9403120129
SECTION: VIRGINIA                    PAGE: C3   EDITION: METRO 
SOURCE: JOEL TURNER STAFF WRITER
DATELINE:                                 LENGTH: Medium


ROANOKE COUNTY SCHOOLS COULD FACE $1.4 MILLION SHORTFALL

Superintendent Bayes Wilson says Roanoke County schools have been caught in a financial bind as the state has given more attention and money to the poorest school systems.

The state will provide millions of dollars in additional aid in the next year for rural and inner-city schools to help reduce the disparity between poor and rich school systems.

But some suburban systems will receive less than $150,000 a year in disparity funds. Roanoke County will receive $145,000.

Roanoke will receive $1.1 million in disparity funds.

"The trend is for the state to provide more money for the poorer systems and force other localities to assume more of the [financial] burden," Wilson said.

The county School Board faces a $921,248 revenue shortfall for its $71.7 million proposed budget. In addition, the schools have another $500,000 in maintenance and equipment needs that might be financed with a low-interest state school loan.

"We're looking at a need for an additional $1.4 million in revenue," said Jerry Hardy, director of budget and data management for the schools.

"It's going to be a lot tougher this year than what I thought," said Frank Thomas, School Board chairman.

Despite the tight finances, the board has decided to prepare a budget that meets the school system's needs and submit it to the Board of Supervisors.

"We feel that it is our responsibility," Thomas said. ". . . We can only hope that [the supervisors] can find the money that is needed."

Diane Hyatt, county finance director, said the county can provide a $2.5 million increase in local funds for schools in the next year. But that will not be enough unless the schools get more state aid than currently projected.

Hardy said he won't know the precise amount of additional state funding until the General Assembly adjourns this weekend. The estimate is $421,637 in basic state aid.

The preliminary school budget includes 3 percent pay raises for teachers and other school employees. There also would be an adjustment to the pay scale to provide large raises for teachers near the middle of the scale.

The School Board will have several work sessions before acting on the budget.

Without more state or local money, the pay raises could be in jeopardy, Wilson said. "Either we will have to ask for more money from the county or reduce expenditures."

Thomas said he believes the board should ask for more money. The School Board has a responsibility to look out for the children's educational needs and make those known to the Board of Supervisors, he said.

"We have decided this is the right thing for us to do," he said.

Thomas said he is worried that $1 million of the county's tentative $2.5 million appropriation for schools will be a year-end balance that won't necessarily recur next year.

"We could start off $1 million in the hole next year," he said. "When you use nonrecurring funds, this can happen."

The county must hire 10 new teachers next year, including five special-education teachers. It also needs to buy 10 new school buses and make roof repairs to several buildings.

Each 1 percent pay raise for teachers costs about $400,000. A 3 percent raise would cost $1.2 million. In addition to the raise, revisions to the pay scale could cost an additional $400,000. The total salary package would cost $1.6 million.



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