THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, April 3, 1996 TAG: 9604030408
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Long : 131 lines
The school district's financial problems produced one more disheartening number Tuesday - a proposed 3.2-cent tax rate increase for Virginia Beach property owners.
City Manager James K. Spore told the council that the district's financial problems, and a shortfall in federal funding for the schools, have forced him to ask the council to raise taxes for the fiscal year beginning this summer.
``I cannot propose cutting city departments or short-changing city employees to make up for the mistakes and behavior of the outgoing School Board and the prior administration,'' Spore wrote in his annual budget message.
Under Spore's proposal, the owner of a $100,000 house would pay $32 more in property taxes as of July 1. Because tax assessments on the majority of city homes will go up this year, however, most tax payers will end up paying more than $32 extra in property taxes.
Most water customers will see the increase offset at the end of the year by a one-time $33 rebate for past overpayment, Spore said.
Spore recommended an $898 million operating budget - almost $50 million higher than last year's - and a spending plan for large-scale projects of more than $1 billion over six years. The tax rate would increase from $1.18 per $100 of assessed valuation to $1.22 if the council approves Spore's recommendation on schedule, May 14.
His budget would give the school district about half of the $37 million increase it requested. To fully fund the School Board's budget would require a 12-cent rate hike, Spore said.
The city will continue all current services, and expand maintenance of city buildings and equipment, E. Dean Block, director of management services, told the council.
Among the significant changes suggested in the budget:
Hiring five new building code inspectors to ensure homeowners continue to maintain aging properties.
Staffing for the addition to the Virginia Marine Science Museum, which will be completed this spring.
Completing the Seatack Recreation Center.
Increasing spending for mass transit to make up for federal cutbacks.
Accepting a federal grant to hire 13 new ``community policing''
police officers.
Adding six spots to the Commonwealth's Attorney's office to handle increased work load; and six more to the fire department to staff a now-idled fire truck.
The Southeastern Expressway, which the council has renamed the Southeastern Parkway and Greenbelt, is the biggest new item on the Capital Improvement Plan, a 6-year spending program for construction and other large-scale projects.
Other new capital projects include renovations for city playgrounds, a new heating system for the municipal center, a new roof for the Central Library, and new police and fire stations for the Beach borough.
Under the proposed operating budget, most city workers would get a 3 to 5 percent raise, with a handful receiving as much as 26 percent. Spore said his goal is to have the best paid employees in Hampton Roads.
``Our employees are the most productive, and we ought to pay for that,'' he said. ``We can afford to pay well, as long as you're doing a good job.''
Several city employees said Tuesday that they are not paid well enough. Police organization leaders said that their officers do not receive adequate salaries and would not get acceptable increases under Spore's proposed budget. They will ask the council over the next few weeks to increase their allotment.
Overall, the city would hire 111 new employees in 1996-97 and the school district would add 69, according to the proposed budget.
Because of all these additions, several school leaders said Tuesday they don't believe the district is to blame for the recommended tax hike.
Virginia Beach Education Association President Vickie J. Hendley said she has trouble accepting ``that the tax increase is recommended purely to fund the needs of the schools. We have economic development needs. We have safety needs.''
Timothy R. Jenney, the district's new superintendent, said he's glad Spore recommended a $20 million increase in school funding for next year. But it's not enough to create a top quality school system, he said.
``We recognize, even though it's significantly below the board's request, it is still the largest contribution I'm told in history,'' Jenney said. ``That doesn't go unnoticed or unappreciated.''
Spore said his budget proposal is enough to fund a strong school system. Spore said his staff found a way to cut about $6 million from the proposed school budget by reducing teacher's pay raises from 5 percent to 3 percent.
``The goal is not to spend more money,'' Spore said. ``The goal is to create a better product out of the school system.''
``There's a limit beyond which you can't go below,'' he said. ``But I think there needs to be more emphasis on output. . . . I don't think the goal should be how much can we spend.''
Associate Superintendent Donald A. Peccia told the School Board Tuesday night that he was drawing up contingency plans in case the council approves Spore's budget.
But he said he would rather ask the council to fully fund the district's budget than suggest cuts right now.
``I don't want to make plans to cut the budget,'' Peccia said. ``I want to make plans to go over there (to the council) and make our case.''
Raising taxes 3.2 cents would generate about $5.8 million, Peccia said, roughly the amount the federal government will reduce its support of the school district next year.
``The tax increase per se is to offset the same amount in federal funding that will be cut,'' he said.
School and city officials said they have confidence that the 1996-97 school budget will not have the problems that plagued this year's and last year's budgets. The district ended the 1994-95 school year with a $12.1 million deficit and has had to make substantial cuts this year to make ends meet.
The city's budget proposal includes $1 million to cushion the school district against any financial problems in the upcoming fiscal year. If the district's budget appears strong in October, the city would let the board spend the money.
The council will discuss the school district's budget in detail in an April 23 workshop.
The manager's proposed budget will be available in all public libraries by Thursday. MEMO: Staff writer Aleta Payne contributed to this report.
ILLUSTRATION: Graphic
How the Process Works
This Year's Budget
School Operating Fund Comparison
For complete text, see microfilm
Budget Meetings
For complete text, see microfilm
KEYWORDS: VIRGINIA BEACH BUDGET PROPOSED VIRGINIA BEACH SCHOOLS by CNB