DATE: Thursday, November 6, 1997            TAG: 9711060472

SECTION: LOCAL                   PAGE: B4   EDITION: FINAL 

SOURCE: BY ALETA PAYNE, STAFF WRITER 

DATELINE: VIRGINIA BEACH                    LENGTH:   72 lines

BEACH COULD HAVE SURPLUS IN SCHOOL BUDGET BUT ADMINISTRATORS, NOTING PAST ERRORS, ARE BEING CAUTIOUS OF OVERSPENDING.

The school division could be looking at a budget surplus at the end of the fiscal year, but officials are being cautious with the prediction given that the financial books won't close until summer.

Board Chairman Robert Hagans said he has been advised by city officials that the division could have $6 million to $10 million left over.

Superintendent Timothy R. Jenney confirmed the figures but emphasized that it is early in the school year and that those numbers are dependent on many unpredictable factors remaining constant.

``On November 4, as we see the picture, some eight months from the end of the fiscal year, that's probably an accurate assumption,'' Jenney said Tuesday.

He emphasized that the possible surplus would represent about 2 percent of the district's $411 million budget, an amount he sees as a buffer for problems such as unexpectedly high utility bills.

About $3.5 million of the surplus would come from unanticipated federal money. The district ran into financial problems in the past, partially because of an over-projection of federal revenue.

Another problem during the district's financial crisis of 1994-95 was the over-commitment of anticipated surplus dollars.

Also mentioned at the meeting:

The surplus figure came up during a discussion of items that would benefit employees. The items, including bereavement leave in the death of an aunt or uncle and health care subsidies, had been tentatively agreed upon but were not included in the district's budget. Hagans suggested that some of the surplus money could be used to cover the benefits. Jenney declined to recommend approval on three of the issues, saying that the division needed to be consistent and disciplined in dealing with unbudgeted expenditures.

The Virginia Beach Education Association has argued that the district did not bargain in good faith over the matter and asked the board to reconsider the issues. The organization said that school officials reneged on the tentatively agreed-upon items.

But Patricia Magee, former assistant superintendent for human resources, said that district employee groups were told that all items were subject to budget constraints before final approval.

The board deferred a decision on the health care subsidy, voted against the bereavement leave but agreed to increase from $27 to $28 the amount paid to retirees for unused sick leave. The cost of the item is $10,600.

``I'm concerned we're spending money we haven't received,'' said board member Arthur Tate.

Board member Nancy Guy said she took her financial responsibilities seriously but thought the budget could absorb the impact.

``It's worth $10,000 to restore some level of trust and integrity to this process,'' she said.

The board also approved a $25 supplement for professional development for the secretarial and clerical staff at a cost of $6,775.

Board member Tim Jackson took some of his colleagues to task for what he described as micromanaging and acting independently of other board members. Jackson did not identify anyone by name.

Jackson urged the board to work together on mutually agreed-upon goals and to stay focused on the big picture.

His comments come at a difficult time in the board's evolution. Almost all the board members were novices when they came together 18 months ago, and they have not always stayed focused on the same task. But they have appeared cordial to one another. In recent months, however, there has been noticeable friction during board meetings. Some have said privately they are worried that conflicts will grow worse, particularly with the upcoming election in the spring.

Board member Rosemary Wilson read a proclamation signed by Mayor Meyera E. Oberndorf declaring Wednesday Dr. Don Peccia Day in Virginia Beach. The associate superintendent for budget and finance was applauded for his contributions to the division and to restoring it to financial stability. KEYWORDS: VIRGINIA BEACH SCHOOL BUDGET

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