THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, September 3, 1995 TAG: 9509010184
SECTION: VIRGINIA BEACH BEACON PAGE: 07 EDITION: FINAL
SOURCE: Bill Reed
LENGTH: Medium: 66 lines
Being in the hole, financially speaking, is not a situation most folks want to be in.
Makes no difference if you're a working stiff, a captain of industry or a player at a Vegas craps table.
But, if you're a bureaucrat with a three-piece suit and a $50 haircut who is running a big school system, it's a definite no-no.
Spending more money than you have in the bank is not considered good form. In fact, it's downright dumb and - in some instances - against the law.
But here we are in Virginia Beach with a $7.4 million ``shortfall'' in the school budget for the present fiscal year and looking to get bailed out before:
The cops arrive to throw the appropriate suspects in the clink, or. . .
Wall Street wheeler-dealers decide the city is such a bad credit risk, since its school system can't keep its books straight, that they jack up interest rates on bonds the city floats to build roads, schools, and water and sewer systems.
The speed with which the city compensates for the school system's financial fumbling may stave off either of the above.
As usual the fall guy will be the city taxpayer, who is going to have to shell out the money one way or another so kids can get a proper education.
The City Council will be the taxpayers' instrument of temporary relief here, although its members generally are not thrilled with the prospect of digging into the piggy bank to cover the school shortfall.
First, the members want to know how the financial mess came about, how serious it is and how it can be fixed. And - if possible - they also want to know who was responsible. To get some of these answers the council has directed city bean counters to return by Sept. 12 with a report on their findings. They may have to hire Dick Tracy to find out who did it.
As you would expect, fingers already are being pointed in every direction.
The School Board says it was not properly informed of pending problems by the recently departed Superintendent Sidney L. Faucette and his chief financial officer. One or more of the vocal board members say it's the fault of the City Council for being indifferent to school needs.
Faucette says his chief financial officer kept him in the dark and fed him a lot of manure like a crate of mushrooms. He adds that he was unaware of the seriousness of the situation until recently.
The City Council says the School Board dropped the ball by not keeping proper tabs on Faucette, his financial advisers and the school ledgers.
But no matter who is at fault, it is painfully obvious that the city is flushing money - gobs of it - down the drain at an amazing rate.
Consider the millions tossed into the vain 13-year effort to obtain Lake Gaston as a municipal water source, the fortune being spent to fix relatively new municipal swimming pools and now comes the report that the school system has spent $7.4 million over budget and can't cover it.
Word is from folks in the know, the school saga ain't over. Before the fat lady sings, they say, we will hear the true skinny on current school construction and renovation projects, which reportedly are either behind schedule or over budget. And, they add, internal budget shuffling in the past year or two could endanger future textbook purchases and salaries for school employees. It also could result in another budget ``shortfall'' next year.
Things could get pretty ugly, it seems, before they get better. by CNB