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

DATE: Friday, May 31, 1996                  TAG: 9605310548
SECTION: LOCAL                   PAGE: B3   EDITION: FINAL 
SOURCE: BY LARRY O'DELL ASSOCIATED PRESS 
DATELINE: RICHMOND                          LENGTH:   54 lines

U.S. FORMALLY REJECTS GOALS 2,000 CONDITIONS THERE CAN BE NO EXCEPTIONS FOR VIRGINIA, SECRETARY OF EDUCATION SAYS.

Federal education officials on Thursday formally rejected Virginia's request for Goals 2000 funds with no strings attached, killing public schools' chances of getting $6.7 million for computers.

State Superintendent of Public Instruction William C. Bosher Jr. received a letter from U.S. Education Secretary Richard Riley denying a request that the federal government waive regulations accompanying the money.

``There cannot and should not be exceptions for Virginia,'' Riley wrote. ``The board appears to be seeking Goals 2000 funds with no accountability at all for the expenditure of the funds.''

Saturday is the deadline for the Virginia officials to allow local school districts to apply directly for the money. Ninety-two school boards have passed resolutions asking for the funds.

The state could still get the money by applying before June 30, the last day of the fiscal year.

In his letter, Riley listed four conditions that are specified in the Goals 2000 law: Recipients must develop a comprehensive education improvement plan, make money available to localities on a competitive basis, use the money in a manner consistent with state and local improvement plans and comply with basic financial reporting requirements.

Riley said the conditions ``reflect the basic purposes of the Act to promote school improvement.''

Bosher, who leaves office July 1 to become Chesterfield County's school superintendent, said Riley could not have granted the waivers even if he had wanted because the conditions are part of the law.

Michelle Easton, state board chairwoman, said the federal government's refusal to approve the waivers proves the program has strings attached, contrary to what its supporters have said.

``We could give them the receipts for the computers. What more do they need?'' she said.

Gov. George F. Allen also sent a blistering letter to Democratic Lt. Gov. Donald S. Beyer Jr. and U.S. Rep. James Moran, D-8th, who waged a highly public campaign for the Goals 2000 money.

``You evidently believe that Virginians cannot be trusted to spend Goals 2000 money wisely on classroom computers and education technology without intrusive federal oversight,'' he wrote.

Beyer and Moran fired back with letters of their own.

``This kind of rhetoric is the last thing Virginians want from their elected officials - especially on an issue as critical as education,'' Beyer wrote.

Moran noted that Allen did not apply for Goals 2000 money.

``While I disagreed with your decision and said so at the time, I never questioned your motives or loyalty to the commonwealth,'' Moran wrote. ``I resent your questioning mine.'' by CNB