Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, January 7, 1994 TAG: 9401070237
SECTION: VIRGINIA PAGE: B-1 EDITION: METRO
SOURCE: LAURA WILLIAMSON STAFF WRITER
DATELINE: LENGTH: Medium
"You just can't sit around and wait," said Roanoke County School Superintendent Bayes Wilson, who sought alternative financing for five of eight renovation projects waiting for low-interest loans from the state.
Wilder has proposed setting aside $75 million over the next two years for school construction. The money would come in the form of low-interest loans and subsidies from the state's Literary Fund, which generates roughly $100 million annually from unclaimed property, unclaimed lottery prizes, fines, fees and interest from state-made loans.
Schools traditionally have relied on the Literary Fund as an inexpensive way to build new schools or renovate older ones. But in recent years, the General Assembly has used the bulk of the money to finance its teacher retirement system, leaving none at all for construction in 1992 and 1994 and only $10.6 million in 1993.
In the meantime, the list of schools waiting for low-interest loans grew to 79. All will be funded during the next two years if Wilder's budget passes, said Dan Timberlake, an analyst for the Department of Planning and Budget.
It is not unusual to wait more than two years for a literary loan, Wilson said. And that is after the project makes it to a priority waiting list, which cannot happen until the locality pays to develop construction plans. Most of Roanoke County's projects have not made it that far.
Two Roanoke projects have gone even further than the planning process while waiting for funding. An overhaul of Virginia Heights Elementary School - placed on the priority list in June 1992 - was completed last year. The school reopened last fall, but the city has yet to see any of the $2 million that was supposed to finance it, Assistant Superintendent for Operations Dick Kelley said.
The city is now in the process of renovating Morningside Elementary, a $2.2 million project that includes installing an air-conditioning system, adding a multipurpose room and modernizing the 65-year-old building. It was placed on the list last May.
"We've never seen any of the Literary Fund money up front," Kelley said, "or even during construction."
Instead, the city fronts the money for the projects, then recoups it when the loans come through, Kelley said. In the process, Roanoke loses interest the money would have earned.
Many localities do not want to wait for literary loans and turn instead to other types of financing, Wilson said. Roanoke County passed an $8.5 million bond referendum in 1992 to pay for some school renovations.
It also borrowed $1.5 million from the Virginia Public School Authority at 5 percent interest to pay for renovations to Northside High School, he said.
Had the county waited, it could have taken that same loan at 3 percent interest, because the Literary Fund also may be used to buy down interest rates from school authority loans.
But there is no guarantee any literary loan money will be coming soon.
Wilder's budget calls for $15 million in school construction loans and interest rate subsidies in the next fiscal year, with $60 million to follow in fiscal year 1996.
However, Gov.-elect George Allen, who takes office Jan. 15, has the power to amend Wilder's budget. A spokesman for the Allen administration could not be reached Thursday.
Kelley said he hopes the budget will go through as planned.
"I would be pleased if they would immediately fund Virginia Heights, since they're 18 months behind, and Morningside in the next year," he said.
\ ROANOKE VALLEY SCHOOL CONSTRUCTION PROJECTS\ ON THE WAITING LIST FOR LITERARY FUND LOANS\ LOCALITY SCHOOL COST\ \ Roanoke Virginia Heights Elementary $2 million\ Roanoke Morningside Elementary $2.2 million\ Roanoke County Cave Spring Junior High $2.5 million\ Roanoke County GlenvarHigh* $2.5 million\ Roanoke County Mason's Cove Elementary* $500,000\ Roanoke County Back Creek Elementary* $600,000\ Roanoke County Cave Spring High $2.5 million\ Roanoke County William Byrd High $2 million\ Roanoke County Northside High* $1.5million\ Roanoke County Cave Spring Elementary* $800,000\ \ Source: The Virginia Department of Planning and Budget, and Bayes Wilson\ *School division has since sought full or partial funding for the project through other means.
by CNB