Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 23, 1994 TAG: 9403240011
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: By BRIAN KELLEY STAFF WRITER
DATELINE: CHRISTIANSBURG LENGTH: Medium
The budget discrepancy has left school officials pointing the finger at county officials and they in turn blaming Dodge.
But the spat, which went on behind the scenes for nearly a month before the county's elected leadership focused on it, is more than the usual bureaucratic scuffle.
It could affect the amount of money given to school operations next year. Or it ultimately could put the pinch on all county budgets.
The Board of Supervisors has yet to tackle possible solutions to the dilemma, which has surfaced as the board considers its first tax increase in three years.
At issue is the figure used to determine the state's contribution to the county school budget. Montgomery officials say they used a higher estimate of average daily membership of 9,030 students only after sending three memos to Dodge, the last of which they said he never answered. School officials say they initially based their budget on an estimate of 8,731 students, which county budget planners later upped.
Now acting School Superintendent in Cumberland County, Dodge said he and his staff consistently used lower estimates of average daily membership - based on local demographic information rather than flawed state growth estimates - during his five-year tenure here.
"If it makes someone feel good to make me the scapegoat, have at it," Dodge said. "I think I have too much of a history of putting together very accurate, basic budget fundamentals."
Current Superintendent Herman Bartlett and Dodge both say the former superintendent answered County Administrator Betty Thomas' questions on membership in Feb. 23 and March 2, 1993, memos. The answers are almost identical.
Yet Thomas wrote Dodge again on March 3, 1993, for further clarification. She mentioned the 9,030 figure and asked, "Please let us know any corrections you feel are necessary."
Bartlett said Tuesday either Thomas and her staff didn't understand the earlier memos or they didn't want to understand.
County fiscal management director Jeff Lunsford said Tuesday that Dodge's Feb. 23, 1993, response could be interpreted several different ways. That's why Thomas asked for more information.
Using the higher estimate of average daily membership last spring allowed the county to show higher school spending without increasing taxes or cutting other spending. It was one way the Board of Supervisors avoided a 3-cent increase in the real estate tax rate last year. An 8-cent increase is now under consideration.
The faulty estimate was out of line with last fall's real average daily membership by approximately 280 students.
Because the state only pays its share on students who actually show up, the county faces two scenarios:
The School Board gives $515,000 back to the Board of Supervisors to cover the money the state won't be sending. The county would still have to pay its share of about $280,000, which cannot be taken back once appropriated.
The county covers the entire $793,000 figure, possibly by drawing on cash reserves. This puts Montgomery in a bit of a pinch, because cash reserves must be maintained at a certain level to ensure a good bond rating. The county has two bond projects pending.
Members of the Board of Supervisors were still scratching their heads about what to do about the shortfall at Monday night's poorly attended public hearing on the tax increase.
The board is to resume work on the budget at its 7 p.m. Monday meeting and tentatively on Tuesday night as well.
The increases in the real estate and personal property tax rates are being used to pay for a $2 million-plus gap between planned spending and revenues.
Moreover, the board has yet to find an additional $650,000 in cuts to make those tax rates work without relying on a one-time windfall that would come this summer with the tax-rate increase.
by CNB