Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, October 27, 1994 TAG: 9410270086
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: JOEL TURNER STAFF WRITER
DATELINE: LENGTH: Medium
School Superintendent Wayne Tripp released a report Wednesday showing that the school budget could increase by 4 percent to 6 percent if the cooperative agreements are terminated.
That could require an increase of about 10 cents in Salem's $1.18 real estate tax rate. The taxes on a $60,000 home could increase by $60 a year.
An elected board could continue the same service arrangements with the city, but there would be no requirement for it to do so.
Some School Board members are worried that an elected board might want to go its own way on services such as finances and maintenance.
Elected board members are likely to be more political without any inclination to continue the current arrangements, said Walter Hunt, Salem's retired superintendent.
Hunt heads a group of retired educators and community leaders who have mounted a campaign to persuade voters to keep the current system. The issue will be on the Nov.8 ballot.
Neither the School Board nor school administrators have taken a position on the issue.
But School Board member Walter Franke said voters need to know before Election Day how much a change to an elected board could cost. Tripp compiled the financial projections at Franke's request.
Under the current system, board members are appointed by City Council and have a close working relationship with the city.
"The extent of shared services in Salem is well beyond that of any other community" in the state, Tripp said. It saves money for both the city and schools.
Most of the savings result from not duplicating services, and in particular not duplicating overhead costs, he said.
The services the school division and city government share are financial operations, data processing, transportation maintenance, building maintenance and legal services.
The schools would have to hire 22 additional employees, ranging from a finance director to a plumber, if the service agreements with the city are terminated.
City Finance Director Frank Turk and his staff now provide all financial services for the school system at no cost. If the school division created its own finance deparment, it would cost an estimated $258,735, plus an additional $30,000 for equipment and furniture.
An independent data processing department for the schools would cost an estimated $169,880, with an additional $150,000 for computer equipment and software.
Salem's school buses, vans and car are serviced by the city's garage staff. If the school division established its own garage, the cost is estimated at $249,825 annually, plus $105,000 to pay for tools, supplies, equipment and the annual payment for a new garage.
Most of the building maintenance for Salem schools is provided by the city's building maintenance department. If the school system provided its own maintenance, Tripp said, it would cost $296,000 a year, plus $145,000 for vehicles, tools and other equipment.
If the school division increased its staff, Tripp said, the workers' compensation insurance costs would increase by $10,000 a year.
If the board had to hire another attorney, he said, it would cost about $6,000 to $8,000, about the same as is paid to City Attorney Steve Yost.
Tripp said the cost to the school division would be $1.4million in the first year, but that would be reduced to $1.1million, because the schools currently pay the city nearly $300,000 a year for some services.
The annual cost would decrease to $801,440 after the first year, because the capital costs for equipment would not recur.
The School Board referendum was put on the ballot by the Virginia Referendum Advocates, a Salem-based group, which collected the signatures of more than 10 percent of the registered voters. The referendum group has not taken a position on the issue, but some people who helped collect signatures favor a change.
by CNB