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

DATE: SUNDAY, January 29, 1995                   TAG: 9501300062
SECTION: VIRGINIA                    PAGE: D1   EDITION: METRO 
SOURCE: JOEL TURNER STAFF WRITER
DATELINE:                                 LENGTH: Medium

HERE'S THE LOGIC BEHIND ALLEN'S PROPOSED FUND CUTS TO SCHOOLS

Some school divisions in Western Virginia would lose $22 per pupil in state funds as a result of Gov. George Allen's proposed budget reductions, while others would lose as little as $2 per student.

Roanoke had been scheduled to receive an increase of $69 per pupil in state money for the next school year. But Allen wants to cut that by $22, so the net increase for the city would be $47 per pupil.

On the other hand, Allen's proposal would cause Bedford County to lose $2 per pupil - trimming its increase from $47 to $45.

So what's going on here? Is it by chance or by design?

There is a plan, budget calculators for Allen said, and there is logic behind the reductions.

Allen has proposed elimination of or reductions in 17 grant programs that funnel millions of dollars to localities for dropout prevention, homework assistance and English as a second language.

He has recommended that some categorical programs be merged into a block grant. His proposals would reduce state school money for localities by nearly $25 million.

Dan Timberlake, a school budget analyst for the state, said the reductions were not made locality by locality or aimed at any geographic area.

Instead, he said, the governor focused on certain programs, such as dropout prevention. School systems vary in the size of their reductions because some have extensive grant programs, while others have few.

``There was no intent to favor any locality,'' Timberlake said. ``It came out this way when the programs were reduced.''

Roanoke has one of the most comprehensive dropout-prevention programs in the region, and the city stands to lose $256,000 a year if Allen's reductions are approved. Elimination of dropout-prevention grants to localities would save the state a total of $10.5 million a year.

Allen also has proposed eliminating the homework-assistance program, for a saving of $1.3 million. A maintenance supplement program that provides $3 million a year to school divisions would be eliminated, too.

Allen has recommended the state provide $2.9 million in educational block grants for programs to help continue some of the grant programs.

But school administrators in Western Virginia said the block-grant funds won't offset the reductions. Some have said the reductions will hurt the localities that need the special grant programs the most.

Besides Roanoke, other Western Virginia localities that received big hits included Pulaski County, $22; Floyd County, $19; and Botetourt County, $17.

Roanoke County and Radford fared well. Both got cuts of $3 per pupil.

Democrats in the General Assembly have complained that the urban and rural areas will suffer the most if Allen's proposals are approved

But Republicans have defended Allen, saying that almost all localities in Virginia will receive more school money in the next school year.

In calculating their potential losses, some school systems have included a reduction in the growth of the business and occupational license taxes in the next year, in addition to the loss of categorical grants.

The estimated losses are: Roanoke, $500,000; Bedford County, $200,000; Franklin County, $195,000; Botetourt County, $56,000; Roanoke County, $128,000; and Salem, $100,000.Allen recommended that the business and professional tax be phased out over the next five years. But he has not provided funds to cover the localities' loss of the growth in the tax.

Botetourt County Superintendent Clarence McClure was philosophical over the pending cuts.

``We don't want to lose any money, but this won't put us out of business,'' McClure said. ``We'll make it.''