The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, September 29, 1995             TAG: 9509280146
SECTION: VIRGINIA BEACH BEACON    PAGE: 06   EDITION: FINAL 
TYPE: Kaleidoscope: When school budget numbers don't add up 
                                             LENGTH: Medium:   88 lines

CAN COUNCIL CONTROL SCHOOL SPENDING? NO.

Can Council control school spending? No.

September 25, 1995

Councilman Linwood O. Branch III

South Shore Resort Inn

Virginia Beach, Va. 23451

Re: Authority of City Council to

regulate/control schools funds

Dear Mr. Branch:

. . . Once funds are appropriated by the City Council for public education purposes, the School Board has the sole responsibility for the management and control of the funds. In its management and control of public education funds, the School Board is subject to two legal levels of control: (i) when funds are appropriated by major classification as set forth in the State Code, no funds shall be expended by the board except in accordance with such classifications without the consent of the City Council and (ii) a school board may not expend any sum of money in excess of that available for public education purposes without the consent of the City Council.

Beyond the legal levels of control enumerated above, the City Council has no authority to regulate, manage or control funds once appropriated by the City Council for public education purposes. While the State Code is clear on these points, the Virginia Supreme Court in Board of Supervisors of Chesterfield County et al. vs. County School Board has likewise addressed this issue.

Specifically, the court has held:

(A)fter a . . . board of supervisors has appropriated money for schools, the exclusive right to determine how this money shall be spent is in the discretion of the school board, so long as they stay within the limits set up in the budget.

Therefore, the City Council is without authority to control and manage the funds appropriated for public education purposes. The School Board alone has this responsibility and must perform these fiduciary duties within the legal parameters which have been cited herein.

Very truly yours,

Leslie L. Lilley, City Attorney

cc: Meyera E. Oberndorf, mayor

Members of City Council

James K. Spore, city manager

Can Council investigate

after the fact? Yes

Code of Virginia, Section 3.10.

Powers of investigation

(a) The council, or any committee of members of the council, when so authorized by council, shall have the power to make such investigations relating to the municipal affairs of the city as it may deem necessary, and shall have the power to investigate any or all departments, boards, commissions, offices and agencies of the city government, including the school board, and any officer or employee of the city, concerning the performance of their duties and functions and the use of property of the city.

(b) The council or any committee of members of the council, when so authorized, may order the attendance of any person as a witness and the production by any person of all relevant books, papers and records of any kind. Witnesses shall be sworn by the person presiding at such investigation, and witnesses shall be liable to prosecution or suit for damages for perjury for any false testimony given at such investigation. Council shall have the power to apply to the judge of the general district court for a subpoena or subpoena duces tecum against any person refusing to appear and testify or refusing to produce books, papers or records as ordered by the council, and the judge of said court shall, upon good cause shown, cause said subpoenas to be issued. Any person failing to comply with any such subpoena shall be subject to punishment for contempt by the court issuing the subpoena.

(c) Any board or commission whose members are appointed by the council, when authorized by ordinance to do so, shall have the investigatory powers, or as much of them as are delegated by ordinance or resolution, to make investigations in connection with the performance of their duties and functions, as may be deemed necessary. ILLUSTRATION: [reprint of memo]

MISSING LINK: The preliminary June financial statement above

indicated that school year '93-'94 ended greatly in deficit. But the

School Board saw only the statement be-low indicating a year-end

surplus. Editorial comment at left.

KEYWORDS: VIRGINIA BEACH CITY CODE MEMO VIRGINIA BEACH SCHOOLS

VIRGINIA BEACH SCHOOL BOARD DEFICIT by CNB