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

DATE: Sunday, March 3, 1996                  TAG: 9603030051
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY ALETA PAYNE, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Long  :  261 lines

BEACH SCHOOLS FACE CHALLENGE OF REBUILDING TRUST, PROTECTING QUALITY

Even before a special grand jury issued its report condemning the school district's finances and urging that most members of the School Board resign, the city's public education system stood at a crossroads.

Whether or not the schools had ended the 1994-95 fiscal year with a $12.1 million shortfall, a funding crisis was coming, perhaps not as dramatic and controversial but just as real, observers say.

The upheaval of the past week makes the district's challenges all the more daunting as it confronts a fundamental question: How much is an education worth, and how much are Virginia Beach residents willing to contribute toward it?

No parents ever step up to the microphone at a School Board meeting to ask that their children's education be cut. Employees don't want to be paid less. Teachers don't beg for fewer supplies.

Beach residents have long prided themselves on their superb schools. Expectations remain high that the system will draw business and residents to the city. But the money to meet those expectations into the next century probably will see little or no increase.

Now the district must work hard to stabilize its leadership and regain the confidence of a citizenry whose trust has been sorely tested.

A critical challenge for the new School Board will be rebuilding trust while making a case for higher funding or reduced expectations. And the board and the City Council must declare a truce in their often contentious relations, a problem that even figured into the grand jury's report.

``Funding educational programs and facilities beyond the (state requirements) or federal mandate . . . becomes a policy/political question which has long been the centerpiece of the tension between the City Council/city staff and the School Board/school administration.''

The school system is being strained by federal and state mandates without enough federal and state money; expectations that all children, not just the college-bound, be adequately trained; and by demands to educate increasing numbers of students who need extra help.

Meanwhile, Virginia Beach funds its schools for less cost than surrounding communities do, which has won praise in management circles and from residents, who pay the lowest taxes in the region.

But, said June T. Kernutt, chairwoman of the School Board, ``while I'm proud of the efficiency of our school system - I think we do provide quality education at a reasonable cost - I don't take pride that we don't fund to our ability to pay.''

For the state's second-largest school district, that translates into ranking at the bottom of Hampton Roads schools in per-pupil spending and next-to-last among the state's 10 biggest districts. The division ranks in the bottom third in per capita spending when compared to those same localities. Some indicators suggest Virginia Beach can afford to pay more. And several of the state's less affluent districts actually pay more than the Beach.

If the proposed 1996-97 budget - $392.4 million - were fully funded, which is unlikely, the district would still be paying less per pupil next year, about $5,100, than the state average in 1992-93, $5,212.

Virginia Beach has avoided the problems of other metropolises - crowding, crime, waning schools. The Washington, D.C., school district, for example, with only about 3,000 more students than Virginia Beach's 77,000, faces several school closings and massive layoffs. So far Virginia Beach schools have been spared such choices.

But, said James L. Pughsley, who has been the city's interim and deputy superintendent: ``This city is changing before our very eyes. We can recognize that and address that now, or we can find ourselves in a catch-up situation. In my experience, when you play catch-up, you never catch up.''

``No one would ever believe the Virginia Beach school system could be subpar. But it can be. It has happened in other cities and it could happen here.''

Residents of Virginia Beach now must grapple with the dilemma facing districts across the nation: What happens when the cost of the school system you want outruns what you expect to pay?

``Clearly we can do things more efficiently,'' state superintendent William C. Bosher Jr. said. ``However, you can't be efficient enough to offset major reductions in revenue and maintain the service level. At some point, you have to decide what your priorities are.''

It may be hard for the community to regard future financial problems as something outside the board's control. But the district will need more money. And it's not coming from federal or state coffers.

``When we regain the public's trust, and they think we're credible again, then I think we really have to address adjusting the funding or adjusting what people want,'' said board member Karen O. O'Brien. ``We want to provide what the people want, but the wish list goes on and on.''

It is hard to imagine a more volatile mix of issues than those at play in education, which encompasses two of a community's most precious resources - its children and its wealth. That's why adequate funding is a priority for people like Christina Vitug, a 17-year-old senior at Princess Anne High School.

``I think the schools should be at the top of their list. This determines people's futures. Without an education, people have nothing to base their lives on,'' she said. ``No matter how much education costs, people deserve as much as they can learn. They shouldn't put a price on education. It's priceless.''

But costly.

The city's five-year financial forecast does not paint a hopeful picture. Historically, around 40 percent of the school district's funding has come from the city. By contrast, Fairfax County contributes about 60 percent, Portsmouth about 31 percent. The bulk of the rest comes from the state and federal government. While the forecast looks at four scenarios for state and federal revenue, the two most likely are for slow growth or flat funding. Federal impact aid to school districts that serve large numbers of military dependents will be shrinking.

Under a slow-growth scenario, ``city and schools would not be in a position to expand services,'' the forecast says. If funding were flat, ``both city and schools would either have to reduce costs or look at additional revenue options. Cost-cutting efforts would most likely involve both across-the-board reductions and the elimination of entire programs.''

The document also discusses the difference between ``expectations'' and ``needs.''

``Our choices may be more starkly drawn as a result of actions of other governmental levels,'' the forecast says. ``If the state reduces or fails to increase support for public education, yet continues to mandate costs and programs, will residents support the local taxes needed to sustain increases in spending in education?''

One Beach parent, City Manager James K. Spore, is pleased with the education received by his daughter, who graduated from First Colonial High School, and son, a student at Lynnhaven Middle School.

``I am really impressed with the quality of instruction and the quality of the teachers,'' he said. ``And based on other places I've been in the country, I think the children of Virginia Beach are getting an exceptionally good education.''

But Spore also sees the choices.

``Whether it's more funding or different solutions, something different needs to be done,'' he said. ``And I think we are reaching the point with a lot of our services where the public demand seems almost limitless and the willingness to pay is very limited. The dollars going into education are increasing faster than the growth in the economy, than the cost of living . . you can afford and what you need.''

Education cannot be a community's only priority, Spore said.

``To focus on one (service) at the expense of others is pretty short-sighted and unrealistic,'' he said.

``You can't keep saying you want more and you want better, but you don't want your taxes to increase. It's an impossible situation.''

Schools aren't the only service that will need more money as federal and state aid decline. And the schools are already funded at a higher level than any other city service on a per capita basis.

Mayor Meyera E. Oberndorf sees education as ``an absolute foundation stone for a flourishing city.'' But she also said that you can't separate the demands of school funding from other city services.

``There's got to be a critical mass where you balance the needs of both and use the money as wisely as possible if you can't grant every penny asked for,'' she said.

While eager to protect education, board member Joseph D. Taylor understands the point.

``We've got to respect the entire city. It's one pie,'' he said. ``We may have to say, `We can't do this for a couple of years' . . . but we can't lower standards.''

The balancing act is not limited to Virginia Beach.

As demands increase for prisons, health care and other services, ``education is no longer first in line as it was in the past,'' said Mary Fulton, a policy analyst with the Denver-based Education Commission of the States.

``A lot of the burden is falling on the local level. And when you complicate it with (declining federal aid), the stress is high. There isn't as much money, there are greater expectations and standards,'' she said.

One Beach teacher, who asked that her name not be used, said she understands the scrutiny given to some of the district's big-ticket items but that doesn't relieve the community of the need to support its schools.

``The city has a right to expect constraint with money,'' she said. ``But there has to be some sort of balance. The school system has a right to satisfactory programs, funded programs. To me, our priorities aren't straight.''

Suzanne Wilson, the mother of two students at First Colonial High School and one at Cooke Elementary, said:

``I think by and large, the consensus in Virginia Beach among parents is they want their children to attain the best education possible.''

If the district cuts programs in the long run, it will be in good company.

In Prince William County, the superintendent's budget proposes eliminating middle-school sports, cutting back high school counseling and eliminating a popular seventh period. The reason, says Superintendent Edward L. Kelly: Tax revenue isn't keeping up with growth.

Vance Jones, assistant superintendent for finance and administrative services for the Alexandria public schools, said the budget for the coming year trimmed buses and maintenance vehicles. A much-anticipated technology plan was pushed back, and a smaller pool of reserve teachers will be hired.

``We have maintenance vehicles that need antique licenses,'' Jones joked. More seriously, he said, ``We've shorted the infrastructure to keep the classrooms supplied. We don't have much more to cut without going into the classroom and into personnel.''

Perhaps the most glaring example of what happens when money doesn't keep up with need is in California. When voters passed Proposition 13 in 1978, they cut property taxes by 57 percent - severely limiting government spending. Since then, classrooms have filled to bursting, schools have fallen into disrepair and many students do without services that most residents here consider indispensable - art, music and physical education teachers, nurses, librarians and guidance counselors.

``When Californians as a community decided what the ceiling was for what they'd do for their children educationally, you can track the demise,'' said Vickie Hendley, president of the Virginia Beach Education Association.

Still, many districts that spend more than Virginia Beach don't do as well on indicators of educational achievement. A cut in funding can force a community to use its resources more efficiently and refocus on the basic elements of instruction.

Karen Brandle, the mother of two children at Windsor Oaks Elementary, struggles with the conflicting interests of providing for schools and being frugal.

``Part of me says we should adjust and live with what we've got until things get better, and part of me leans the other way,'' she said.

Councilwoman Louisa Strayhorn, a former School Board member, believes that as the pot of money shrinks, the importance of priorities grows.

``When you have limited amounts of money,'' she said, ``there are ground rules you need to set, whatever student population you have. There are some basic things you need to provide.''

The people of Virginia Beach do not expect a ``cadillac system,'' Strayhorn said, but they do expect to maintain a tradition of producing well-educated students by giving them the basics.

``The tradeoff here in the amount of money is, `Do we give students what people say they need to feel good about themselves or do we provide them the basics they need to do well?' ''

Even an efficient system may reach a point where more local money is needed, possibly requiring a referendum each year or a ``serious study'' of how schools are funded.

The more prosaic impact for communities unwilling or unable to commit financially to their schools is that people and business stay away.

K. Edwin Brown, executive assistant to the superintendent for academic and planning areas, represented the district on a recent trip to San Diego to meet with families relocating to Oceana Naval Air Station. A 32-year veteran of the district, he said the system has long sold itself ``as a good academic education at a reasonable price.

``Historically, I think education has been a magnet for this city. I think it has been one of our most valuable resources and one of the reasons the city grew so quickly.''

Pam Sollenberger, relocation specialist with Navy Family Services, said schools are one of the first things families with young children ask about.

``I think they know (Virginia Beach) is a place with a good reputation,'' she said. ``We emphasize that our test scores are high.''

And board member O'Brien, a real estate agent, said clients will ``change their mind on the type of house they want or what they'll spend based on the quality of the school system.''

School board member Ulysses Van Spiva, who announced after the special grand jury report that he will resign, has spent his life as an educator who believes ``if the system goes down, we all go with it.''

``We've got good kids out here. We have a clientele that won't let you give their kids a second-rate education,'' Spiva said. ``They find out you are, and they're gone. They're gone.'' ILLUSTRATION: Graphics

JOHN CORBITT/The Virginian-Pilot

VIRGINIA BEACH HAS ENJOYED TOP QUALITY SCHOOLS...

...WHILE SPENDING RELATIVELY LITTLE ON EDUCATION

Sources: 1993-94 figures from The Virginia Department of Education,

Commonwealth of Virginia, auditor of public accounts.

VP

WHAT WOULD IT COST THE VIRGINIA BEACH PUBLIC SCHOOLS TO...

SOURCE: Virginia Beach Public Schools

VP

TEACHER-TO-PUPIL RATIO, SELECTED LOCALITIES

AVERAGE TEACHER SALARIES

SOURCES: The Virginia Department of Education

[For complete graphics, please see microfilm]

KEYWORDS: VIRGINIA BEACH SCHOOLS by CNB