The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Friday, January 26, 1996               TAG: 9601260509
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY ALETA PAYNE, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Short :   49 lines

BEACH PROSECUTOR SEES EARLY END TO SCHOOL PROBE GRAND JURY TO HEAR EX-SUPERINTENDENT SIDNEY FAUCETTE THURSDAY.

The special grand jury investigation into the school district's finances could be drawing to a close.

Virginia Beach Commonwealth's Attorney Robert J. Humphreys said that the inquiry could be concluded as early as next month and that the presentation of witnesses should be finished ``fairly shortly.''

Humphreys said February was an ``optimistic projection'' because the grand jury still must complete its report after all the witnesses have been called.

``That could take some time,'' Humphreys said. He also said some jurors had vacation plans in February.

On Thursday, the panel will hear from former Superintendent Sidney L. Faucette, who left the Beach schools in the summer to head a schools division in Gwinnett County, Ga.

Two months after Faucette left, it was discovered that the Virginia Beach school system had finished the 1994-95 fiscal year $12.1 million in the red.

Although Faucette warned school officials in December 1994 that the district faced a deficit if it did not institute spending measures, he assured them later that the situation was under control.

From Georgia, Faucette has said he left the Beach expecting a budget surplus based on the information from his financial staff.

In addition to faulting the information from his staff, Faucette has said he was hampered by the city's finance system and by a School Board budget committee that cut him out of the loop.

The grand jury may reimburse Faucette for ``reasonable'' travel expenses, Humphreys said.

``I'm not going to pay for his first-class ticket, but if he wants to travel coach, we'll reimburse him for it,'' Humphreys said.

Faucette has hired Virginia Beach attorney Kenneth V. Geroe for the proceedings. A request to have the Beach School Board pay his legal expenses was refused, and Faucette has said he will pay for them himself.

It was not clear whether Faucette will seek reimbursement for his travel expenses. He was in a meeting and unavailable for comment Thursday afternoon. ILLUSTRATION: Robert J. Humphreys said the inquiry could end as early as

February.

by CNB