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

DATE: Wednesday, May 8, 1996                 TAG: 9605070141
SECTION: VIRGINIA BEACH BEACON    PAGE: 05   EDITION: FINAL 
SOURCE: BY BILL REED, STAFF WRITER 
                                             LENGTH: Medium:   59 lines

READERS OPPOSE TAX INCREASE

Surprise, surprise!

Eighty percent of the 433 people who answered the Beacon's Infoline survey Sunday and Monday on preferred city tax options said they don't want any tax increases at all in next year's city budget.

Of the remaining 20 percent, 33 people said they preferred a 12-cent real estate tax increase; 11 said they preferred a 7.4-cent increase and 43 said they preferred a 3.2-cent increase.

The unscientific survey was a last-ditch effort to gauge public sentiment on three options suggested by city and school officials to balance a proposed $898 million municipal budget for 1996-97. The fourth option - no tax increase - was added by the newspaper.

The City Council has scheduled a final hearing on the budget Thursday at 2 p.m. in the council chambers to sample public opinion.

At the heart of the issue is how much of an increase, if any, is needed to underwrite the needs of the school system, which last year overspent its budget by $12.1 million and prompted a special grand jury investigation.

City finance officials offered these tax options:

A 12-cent increase proposed by the outgoing School Board to fund a ``fully loaded'' $400 million school budget. It would underwrite all programs sought by new Superintendent Timothy R. Jenney, including a 5.3 percent raise for all employees and the expansion of certain school programs.

A 7.4-cent increase, seen as ``acceptable'' to Jenney, would balance a $393 million school budget. Jenney says the option would not involve the cutting of school programs. This choice would give school employees a 3.3 percent raise and replace some teachers with paraprofessionals.

A 3.2-cent increase would balance what school officials call a ``bottom-line'' $385 million budget. It would eliminate the growth in magnet school programs and increase the need for more funding to educate more than 800 new students who will be added to city classrooms next year. City Manager James K. Spore advocates this option.

The existing real estate tax rate for Virginia Beach is $1.189 cents for each $100 of property valuation. That means that a $1,189 tax would be levied on a $100,000 Virginia Beach home.

A 12-cent increase would require that homeowner to pay $1,309 next year; a 7.4-cent rate increase would push taxes to $1,263 on the same house; 3.2 cents more pushes the rate to $1,220. ILLUSTRATION: HOW MUCH MORE?

Of the 433 respondents, the number of each who voted for the

following options on raising the real estate tax rate:

12-cent increase: 33 callers

7.4-cent increase: 11

3.2-cent increase: 43

No increase: 346

KEYWORDS: COMMUNITY CONVERSATION PUBLIC JOURNALISM by CNB