THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, April 22, 1995 TAG: 9504220288
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY ELIZABETH THIEL, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 69 lines
The School Board's books will be in the black come June.
Superintendent Sidney L. Faucette's budget practices are sound.
And rumors that the internal auditor quit last week because of concerns about bookkeeping or that the school system is running out of money to pay teachers, buy supplies and finance summer school for special education students are not true.
Those are the assurances of the school system's chief financial officer, Mordecai L. Smith.
Smith told School Board members this week that when the fiscal year ends this summer, there will be excess money - as much as $3 million - despite beginning the fiscal year with nearly a $7 million shortfall.
``The situation that we have is not what I would call a bad situation, or a crisis,'' he said.
Many board members said they were satisfied that the school system's finances were in order.
``He is telling us as our chief financial officer that we are going to come out in the black,'' board member Susan L. Creamer said.
``I have to be'' confident, she said. ``I mean, that's his job.''
Smith has offered few specific figures to show exactly how he plans to balance the budget. He said he will release a full report next week.
Earlier this week he proposed cushioning the operating budget by shifting some expenses into the construction budget, but he said Friday that he does not plan to pursue that idea.
The school system began 1994-95 with at least a $7 million shortfall. Unofficial estimates placed the figure several million dollars higher. Faucette blamed the shortfall on a discrepancy in enrollment last year that caused a drop in state funding, plus overspending by school workers.
Smith and other school officials have had to do some fancy financial footwork to make up for that, plus provide for all of this year's spending.
The measures included a hiring freeze that began in the fall and an urgent call to principals and other department heads to cut out all spending that was not essential. Preliminary reports show that many departments have made cuts, coming in well under budget on travel, training and dues for various professional organizations.
Smith said that as of March 15 he also asked principals and department heads to cancel orders for all items not needed for this fiscal year. School workers have had a habit in the past, he said, of using excess budget money to purchase and stockpile supplies for the following year.
So far, Smith said, only four schools have had their orders canceled. Those supplies, instead, will be ordered using next year's money, he said.
Orders for essential supplies are being filled right away, he said.
``We're not saying the goods are not coming,'' he said. ``It's a paperwork thing.''
All employees will be paid as usual, he said. ``That's not even a question.''
And although school officials have not finalized their summer school programs, the school system plans an academic program for special education students, said Sheila S. Magula, one of the coordinators for summer school.
Board members said they would continue to monitor the finances.
``I think all board members are concerned about budget issues,'' board Chairwoman June T. Kernutt said. ``We have been assured by Mr. Smith that with the freeze in place we are going to be in good shape and that the steps that need to be taken have been taken to ensure that the budget is sound.''
KEYWORDS: VIRGINIA BEACH SCHOOL BOARD BUDGET by CNB