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

DATE: Sunday, July 21, 1996                 TAG: 9607200114
SECTION: VIRGINIA BEACH BEACON   PAGE: 06   EDITION: FINAL 
TYPE: Editorial 
SOURCE: Kevin Armstrong 
                                            LENGTH:   66 lines

LET'S KEEP BUILDING ON SCHOOL SUCCESSES

Beach residents got some great news last week from the school district: It appears educators met their budget for the year just completed.

The official audited version on those numbers will be available next month, but preliminary reports show that expenses totaled slightly less than 98 percent of what was planned. Revenues, which are always difficult to forecast and are still being collected, will determine whether the bottom line is black or red.

It's amazing that the idea of meeting the district's budget is even cause for celebration, but after the previous two school years, it marks a major feat. We ought to all take note of it.

Amid all the congratulations and back patting, though, let's not fool ourselves into proclaiming the process solved. Sure, we've learned some valuable lessons, but other goals remain.

One of those is the consolidation of some city and school financial services, including purchasing, accounting and accounts payable.

The idea surfaced several years ago before any deficit came to light, but the financial troubles only illuminated the possibilities even greater.

School and city officials have been working on a plan for several months, and it's only right that the new School Board be brought up to speed, but let's not linger long with working this out. It should be made a priority, if only so we can implement it and move on to other issues.

Done poorly, though, consolidation has the potential for recarving the division that existed this time last year between the board and council.

We have enough problems with regional cooperation that we can't afford another intra-city fight.

Both the school system and the city seem to agree on the basic goals involved in consolidating some financial services: saving money and providing greater financial checks and balances.

The tension exists over how best to carry this out.

A consolidation committee comprised of staff and elected leaders from both the city and schools are charged with working this out. But at this point, a ``common understanding has not occurred yet,'' according to one committee member.

Payroll is one of the stickier problems that must be addressed.

School employees' contracts, for example, are paid out over different time periods, such as nine, 10, 11 or 12 months in a year. Teachers also have union dues deducted directly from their paychecks.

Those processes would have to be integrated into a city system that's not necessarily set up to deal with them. More importantly to some is exactly who would be working for whom?

Much of the talk previously has centered on moving some school financial services over to the city side. School leaders worry then about losing control over those employees and those decisions.

They remind that the school system is not simply a department of the city since most of its funding comes from other sources.

The key to this whole agreement will be assuring the school system that consolidation won't open the door to any micro-managing opportunities for city staff. Educating children is a job best left to school leaders.

One of the more positive steps to emerge from these negotiations is the inclusion of consolidating the city's and school system's printing services.

Pulling that off would be easier than integrating financial services because the jobs on both staffs are more identical. Plus, the school system has greater peaks and valleys in its printing schedule with schools shutting down for the summer months. It might be that more city printing could be scheduled during that time if the two shops were consolidated.

Maximizing those opportunities is what this exercise is all about. by CNB