THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, November 16, 1994 TAG: 9411160417
SECTION: LOCAL PAGE: B7 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Medium: 53 lines
The money that colleges and other state agencies have left at the end of the budget years may be used to finance new state prisons.
``We're taking no source of money for granted in this budget,'' said Finance Secretary Paul Timmreck. ``We have some very challenging times ahead of us.''
The potential loss of $116 million isn't sitting well with dozens of agencies that expected to have the money returned months ago.
``Since September, we've been inquiring, `Are these monies going to be reappropriated?' '' said Colette Capone, vice president of management and budget at the University of Virginia. The school is expecting $6.2 million.
``It doesn't take a rocket scientist to figure out that, with Gov. Allen's initiatives on prisons and the costs of those initiatives, the money could be at risk,'' Capone said.
Gov. George Allen said Tuesday that funding higher education is a priority, but he would not promise that the money would be returned.
``At this point, we don't want to say exactly what we're going to do with it,'' he said.
The governor's budget recommendations will be finalized in the next few weeks.
The carry-over fund provision was designed to replace the ``use it or lose it'' mentality in state government by encouraging frugality and rewarding sound management.
To further those efforts, the General Assembly this year lifted limits on the amount that colleges could carry from one year's budget to the next.
Many colleges had put off major equipment purchases last year, pending this year's completion of their state-ordered restructuring plans. Some colleges say that, without their savings, they won't have the staff and equipment to pursue the plans.
The Board of Visitors at Virginia State University, which is facing a $2.6 million shortfall if the state does not return the money, recently sent letters of concern to Allen and his education secretary.
The Virginia Community College System - with almost two dozen colleges owed a combined $7.4 million - would be devastated if the funds aren't returned, said Chancellor Dr. Arnold R. Oliver.
``At this point, it would mean turning thousands of students away,'' said Oliver. Contracts to pay part-time faculty and to purchase classroom equipment were negotiated months ago when agencies had no reason to fear losing their savings, he said. by CNB