LIKE A GOOD crisis manager, Virginia Beach's school superintendent prepared last year for a financial storm.
Told to expect a shortfall of $6.5 million in this year's budget, Jim Merrill cut spending, eliminated vacant positions and guided the division to become more energy efficient.
By year's end, the storm wasn't as bad as had been predicted; more money than anticipated flowed in from the federal government; and planning for worst-case scenarios all contributed to the schools' having more than $33 million left over.
The School Board now is in the enviable position of figuring out the best way to use the money. Hiring teachers is out of the question because the pot of money can be used only for one-time expenses.
Administrators have a conservative, prudent proposal: Spend 25 percent, about $8.2 million, on staff training, new technology, tutoring programs and instructional materials; replace some outdated equipment and buses; and tackle a few capital improvements, such as roof replacements, plumbing and electrical work and large-scale technology projects.
The bulk of the money, 75 percent, or nearly $25 million, should be put in a reserve fund for the tsunami predicted to tear gaping holes in next year's state and local budgets.
If the schools don't need the reserve fund to plug holes, School Board Chairman Dan Edwards wants to use it for the projects left undone: building a new Princess Anne Middle School; replacing heating and air conditioning systems and roofs; and paying for other expensive components of the 30-year capital improvement plan.
Because of the weakening state economy, the most recent predictions for state revenues suggest a gap between income and expenses of between $2 billion and $3 billion in the commonwealth's $77 billion, two-year budget.
As a result, Beach schools' Chief Financial Officer Farrell Hanzaker said, the holes in the schools' budget could total $20 million between state and local funding.
It's never pleasant to have to choose between taking care of the immediate needs of the city and looking out for its future. But in large part because of conservative budgeting and forward-looking policies, Superintendent Merrill and his staff have turned a potential disaster into a manageable storm.
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VBCPS Surplus
There is only a "gentleman's" agreement that this money can only be used for non re-ocurring costs.
Some of this money should have been used to raise the salaries of teacher assistants. When did they know they were going to have a substantial surplus....before September is my guess.
Perhaps...
Perhaps the VP should have recommended the same thing for Johnnie and Timmie a long time ago instead of advocating spend, spend, spend that surplus on socialist programs. We would not be in this situation if the democrats had not spent every dime of the Warner "surplus" which was a result of the unnecessary and largest tax increase in Virginia history. Over extend yourself and pay the consequences later. That is what the world is learning right now. Oh, Boo Hoo......