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

DATE: Friday, March 1, 1996                  TAG: 9603010459
SECTION: FRONT                    PAGE: A8   EDITION: FINAL 
SOURCE: BY KAREN WEINTRAUB AND ALETA PAYNE, STAFF WRITERS 
DATELINE: VIRGINIA BEACH                     LENGTH: Medium:   80 lines

SCHOOLS' CRISIS COULD BE OMINOUS FOR CITY COMMUNITY LEADERS WORRY ABOUT EFFECT ON FUNDING, IMAGE.

The school district's financial crisis has probably ended some professional careers and damaged board members' reputations.

Its impact is also spreading beyond the school administration building, tarnishing the image of the school system and the entire city.

``I feel sorry for the whole unfortunate mess,'' Del. Harry R. (Bob) Purkey, R-Virginia Beach, said Thursday. ``It hurts the whole city. It just doesn't hurt the School Board, it hurts everyone. And that just can't be tolerated.''

The success of Virginia Beach's school district has long been a driving force behind the city's development.

But debacles like the one that led to Wednesday's scathing special grand jury report, can affect economic development, funding and a community's self-image, community leaders said.

Vice Mayor W. D. Sessoms Jr. said he's glad he's not in the city's economic development department. One of the first things companies look at when considering a particular location is the school system. Virginia Beach's schools used to be one of the city's strengths; now it's a weakness, Sessoms said.

``To me, it's a sad day for the city of Virginia Beach to see this report,'' Sessoms said. ``This is the type of press that a city just does not need. If there's anyone being courted right now by our economic development people, (this report) is the kiss of death, plain and simple.''

Del. Glenn Croshaw, D-Virginia Beach, said the special grand jury's report was the talk of the General Assembly Thursday. And the talk wasn't good.

``It made us not look good in the eyes of the rest of the state,'' he said. ``It will not help our funding for many many things for years to come.''

Croshaw and others said they expect the fiscal problems may deter good candidates from running for the School Board. That didn't seem to be the case, Thursday, however.

Voter Registrar Marlene J. Hager said eight or nine people came into her office Thursday morning to request information about running for the board. Seven seats were already scheduled for election May 7.

Any vacancies created by the resignation of the four other board members, elected in 1994, would be filled by the circuit court. Elected member Ulysses Van Spiva resigned Thursday. Elsie M. Barnes, Tim Jackson and chairwoman June T. Kernutt, who were also elected, have not yet announced whether they will resign.

The City Council will have to decide whether to fill temporarily any vacancies created by the resignation of members they appointed. All of those seats are up for election in May with terms beginning July 1. Susan L. Creamer and Robert W. Hall, who both resigned last month, D. Linn Felt, who stepped down Thursday, and Joseph D. Taylor, are council appointees.

Despite the reshuffling of the School Board that could follow the resignations of several board members, parents and school district employees said they were pleased that the people to blame for the financial crisis were finally paying a price themselves.

``For everyone to keep their jobs after a fiasco like that (would look) like no one was being held accountable,'' said Tim Carey, an accountant whose son will be in kindergarten next fall at Windsor Oaks Elementary School.

Lloyd E. Weaver, father of two students in the district said he thought those implicated in the report, including the board members, former Superindendent Sidney L. Faucette and Budget Development Director Mordecai L. Smith, should suffer consequences.

``I think Dr. Faucette and Mr. Smith should be prosecuted and the board should resign in disgrace for letting themselves be out-foxed,'' Weaver said.

Superintendent Timothy R. Jenney, whose tenure began only nine days ago, said Thursday that he would be the district's sole spokesman on the jury report. But he wasn't saying much.

``I don't think it's the district's place to make comment on governance,'' Jenney said.

Others praised the school district's staff for remaining focused on children through the most turbulent year in the district's history.

``They reassure our children every day by conducting business as usual,'' said Jane S. Brooks, president of the Virginia Beach Council of PTAs.

KEYWORDS: VIRGINIA BEACH SCHOOL BOARD BUDGET by CNB