THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, April 10, 1996 TAG: 9604100355
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY ALETA PAYNE, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 82 lines
Superintendent Timothy R. Jenney has asked school division administrators to come up with potential ways to save money - raising the prospect that some employees could be impacted - if the system's financial picture darkens before the end of the fiscal year.
Although he stopped short of using the word ``furlough,'' Jenney did not rule out the possibility that some employees could be affected.
``I think it's fair to say we have to look at all aspects of the organization and that does include personnel,'' Jenney said Tuesday evening. However, he stressed that only those areas ``not critical to instructional services'' would be considered for possible cost-cutting.
Jenney is taking a cautious approach to the district's finances because the school system still does not have all anticipated revenue in hand.
While finances have remained in line with predictions, however, some federal money is still not in hand, Jenney said, and, with just two months left in the fiscal year and slightly longer in the fiscal year, time is running out to save money.
``We don't have the luxury of waiting until all the potential revenues are received'' before acting, Jenney said.
He has also requested a response regarding the additional money the council said it might provide.
``I expect (a response) will be handled in a timely manner,'' Jenney said.
``I`m hoping of all of our contingencies, none would have to be implemented,'' he said.
But the superintendent added, ``We cannot and will not end (the fiscal year) in a deficit position.''
It is not certain cuts will be needed, and none have been approved. But that didn't stop the rumor mill from running full tilt Tuesday with the possibility that some employees would be furloughed.
At the School Board's April 16 meeting, Jenney said, he will present an update of the district's actual revenues and expenditures with estimates for the future. That presentation will include best-case, worst-case and most-likely scenarios, he said.
The board also will be provided with a list of possible cuts.
The board is not scheduled to act on any cuts that evening. However, Jenney said some of the reductions, if needed, could be in place as early as May 1. He declined to discuss specifics.
The district's fiscal outlook has not changed dramatically since late February, when, for the first time in a long while, school officials were given optimistic financial news. If funding and spending levels remain on course, and the City Council comes through with more than $2 million in additional money that council members had indicated they might provide, the division could end the year without a deficit and without the painful and controversial cuts the board had considered.
The district has weathered a series of financial crises in recent months. The 1994-95 fiscal year ended in a $12.1 million deficit caused by faulty revenue estimates and overspending.
A close study of the current year's budget found some of the same problems, resulting in strict spending measures. Although those reductions saved the district more than $5 million, the revenue picture worsened, prompting the board to request more money from the council in January to avoid considering cuts, including eliminating spring sports or a day without pay for employees, two hugely unpopular options.
School officials took heart from the improved picture in February, but Jenney now says they must have more than the likelihood of incoming money to base the district's financial health on.
Vickie J. Hendley, president of the Virginia Beach Education Association, said, ``I think Tim Jenney is going to have to make some incredibly difficult decisions and look to the school board to support him. We cannot end the year in a deficit.
``I would find it tragic, though, if our city ever found it necessary to rely on employees in the school system to subsidize the school system because of a shortfall in federal and state money.'' ILLUSTRATION: Color photo
Superintendent Timothy R. Jenney is watching anticipated revenue.
KEYWORDS: VIRGINIA BEACH SCHOOL BOARD BUDGET by CNB