THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, March 3, 1996 TAG: 9603010186
SECTION: VIRGINIA BEACH BEACON PAGE: 09 EDITION: FINAL
COLUMN: On The Street
SOURCE: Bill Reed
LENGTH: Medium: 71 lines
A special grand jury released a scathing report Wednesday on its four-month probe into the financial operations of the Virginia Beach school system.
Sadly, the report confirms some long-held suspicions.
One of the most obvious is that the folks in charge of the school budget - particularly the former superintendent, his budget director and the School Board - violated a sacred public trust.
It was their job, their duty to see that millions in taxes were properly channeled to educate the city's youth and to account for the funds in a prompt and professional manner.
They didn't.
Furthermore, the special grand jury noted, most of those responsible for the debacle still don't seem to be terribly concerned about placing what had been a financially solid and respected school system into serious jeopardy for the foreseeable future.
The grand jury further reported that the former superintendent and his budget director basically overstepped their authority by shifting millions to various school accounts and committing millions in school funds to contracts and property leases without the knowledge or prior approval of most School Board members.
Meanwhile, the grand jury members declared, board members failed to mind the store - watch the cash register.
They failed to keep tabs on top administrators and failed to rein in the careless handling of public money despite early warning signs of trouble. And when the whole mess came crashing down around their ears, they vigorously denied responsibility for the consequences.
Worst of all, the panel concluded, the participants - that includes the former superintendent and his budget director - showed little remorse or guilt for being part of the financial fiasco.
Instead, they chose to blame each other, the City Council, the city administration and the media for the debacle.
In blunt language, the 10-member grand jury panel recommends that the former budget director and members of the School Board who have served since the 1994-95 fiscal year, either resign or face charges of malfeasance.
Unfortunately, the punishment for conviction on this misdemeanor count is a $250 fine, a mere tap on the wrist.
In defense of the board, it's only fair to point out that its members are largely nonprofessionals in the field of education and finance and that they had volunteered - in exchange for a small stipend - their time and energy to oversee the operation of the city's vast public school system, the second largest in the state.
They were forced to rely on the word of top administrators that budget matters were in order or soon would be, despite some immediate problems.
True, the board should have been more vigilant, more curious, more heeding of signs of trouble ahead.
But the buck stops with the top guy in the system, the head honcho. He's the one who initiates the orders to spend, save, hire and fire and he bears the ultimate responsibility for all that went wrong. It is his word on which the board relies in making school policy decisions. If his word is worthless, board decisions are surely bound to go awry.
And before they went awry, the former superintendent happily left town to take another top administrative job with the Gwinnett County, Ga., public school system.
He might escape the fallout here in Virginia, but indications are from Georgia that the Gwinnett County school board has been keeping a close eye on events here in Virginia Beach and may be sharpening the old axe.
KEYWORDS: VIRGINIA BEACH SCHOOL BOARD SPECIAL GRAND JURY by CNB