THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, November 17, 1995 TAG: 9511170187
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY TOM HOLDEN, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 93 lines
Members of the city's General Assembly delegation say they support the City Council's move to consolidate the city and school district financial services, despite hesitancy from the School Board.
Several legislators interviewed Thursday said that unless more stringent fiscal control is placed on the School Board, its budget problems could persist. The school system is dealing with a $12.1 million deficit for the 1994-95 fiscal year, the worst financial crisis in its history.
``Regardless of what the School Board does, the City Council ought to have the power,'' said state Sen. Kenneth W. Stolle, a Virginia Beach Republican. ``If, in fact, the consolidation can bring about a savings to the city and more accountability of the finances, then I think we'd be foolish not to try.
``There was huge mismanagement of the budget. I think everyone in the General Assembly is concerned about what's happened to the Virginia Beach School Board.''
On Tuesday, the School Board is expected to consider for a second time demands by the City Council to place the district's financial accounting, payroll, purchasing and risk management departments under the city's Department of Finance.
The council has said that if the School Board doesn't agree to the terms by Tuesday, the council plans to seek state legislation that would give it the authority to consolidate the operations.
The action comes as Circuit Court Judge Jerome B. Friedman is considering a request from Commonwealth's Attorney Robert J. Humphreys to empanel a special grand jury to investigate who was responsible for the district's budget shortfall.
Del. Leo C. Wardrup Jr., an experienced military budget manager, said nothing has transpired in the last week that has convinced him it's not a good idea.
``This matter is currently in the hands of City Council and the board,'' he said. ``Certainly we would like to have a consensus from the board and the council, but if the board is not interested, then they need to make it clear as to why they are not.''
Wardrup is the former controller of the Norfolk Naval Shipyard, the Oceana Naval Air Station, the Naval Aviation Forces, Atlantic Fleet, and the former commanding officer of the fleet accounting center, which oversees a budget for all the Navy's East Coast, South Atlantic and Mediterranean operations.
The Virginia Beach Republican said he supports consolidation of city and school financial services.
``First, there is some lack of fiduciary control within the School Board for handling finances,'' Wardrup said. ``Number two, the city has demonstrated its ability to handle finances in a responsible manner. Three, there is a promise of some real cost savings to taxpayers by not having duplicative staffs.
``One other reason is there needs to be some level of oversight from the city to the school since a large percentage of their money flows from city to school.''
About 40 percent of the school district's $340 million operating budget is supplied by the city, with the remainder coming from state and federal sources.
``I don't think having the funds flow through the city will reduce the School Board's right to exercise its fiduciary responsibility to educate the kids,'' Wardrup said.
While Wardrup and Stolle favor more control over city school finances, Del. Robert Tata, another Republican, said the decision hinges in part on whom the district selects as its new superintendent.
Tata, who serves on the House Education Committee, said a district ought to handle its own finances.
Del. Robert F. McDonnell is the ranking Republican member of the House Committee on Counties, Cities and Towns, which would oversee any changes in the state charter. He said consolidating fiscal operations is an ``option they need to strongly consider.''
``To the extent the School Board accounting functions overlap and mirror some of the city's on a more widespread basis, I don't see a practical objection.
``Frankly, it's a headache they could get rid of to focus more strongly on the policies of education. I have not heard a good reason why it should not be done.''
But as an advocate of restraint in government intervention, McDonnell said he is reluctant to support the move unless there is no other way.
``Just as in state government, where we don't like the federal government coming in and telling us what to do, we don't like to come in and tell the city what to do. The government closest to the people works best.'' ILLUSTRATION: Photo
Sen. Ken Stolle...
KEYWORDS: VIRGINIA BEACH SCHOOL BOARD BUDGET VIRGINIA BEACH CITY
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