Stimulus funds begin trickle to S. Hampton Roads schools

The president's education secretary wants to see money flow straight from the federal government into schools like Larchmont Elementary in Norfolk, where teachers have tacked posters over water and mildew stains.

"If we have even a thread of justice in our hearts, we should change these conditions immediately," Arne Duncan said about outmoded schools at a meeting with education reporters.

It's possible none of the $100 billion in federal stimulus money that's on its way to schools across the nation will be spent renovating Norfolk buildings. Restrictions on some of the money, coupled with state and local shortfalls that have left schools scrambling to pay for basics including salaries, are driving much of the spending locally.

Despite the complicated formulas and restricted spending, school leaders in South Hampton Roads welcome the additional money. The region scored big, landing some of the largest stimulus packages in the state, with Virginia Beach bringing in $49.3 million - second only to Fairfax County - and Norfolk securing $34.8 million, the fifth highest.

The first wave of the federal stimulus money has recently been released to the state for local school systems.

And school administrators will need to be accountable for their spending.

"Is it good for kids and why? And which kids is it good for?" asked Amy Wilkins, a vice president with The Education Trust, a Washington -based advocacy group.

The answer will be complicated. Much of the money can't be spent freely.

Of Virginia Beach's total, nearly $18 million comes through a federal program that benefits special education students. An additional $9 million is aimed at students from low-income families. That money, as far as schools know, can't be used for basic operating expenses or new buildings.

"I can't tell you with any precision what strings will be attached," Chief Financial Officer Farrell Hanzaker told the Beach School Board in March. The school division has discussed using some of the special education money to train regular education teachers in how to effectively help disabled students who are included in their classrooms.

As an added security measure, the state is reimbursing school divisions for qualifying expenses.

That leaves a less-restricted pot of money that the state decides how to distribute. These stabilization funds can be used for such things as construction and salaries.

"This is a real test of states' creativity," said Duncan, the U.S. education secretary. "The first question we're asking states is what you did creatively with the stabilization funds."

The answers will influence how later rounds of money are distributed.

"This is money the General Assembly has designated to backfill for state cuts " and is not a windfall, said Kent Dickey, assistant superintendent for finance with the state's department of education.

There isn't enough money to make each school division whole after $424 million was cut from the education budget, so the state is using a formula that gives more to the heavily subsidized school divisions that experienced deeper trims. That's why a wealthier school district like Virginia Beach is getting $303 per student in stabilization money from the state while Portsmouth is getting $385 per student.

Patricia Wright, superintendent of schools for Virginia, said the General Assembly decided to distribute money based on the same formula the state typically uses.

"That's a local decision how to use the money," she said.

Virginia Beach, which was not considering layoffs, will be able to put about $16 million in stabilization money toward its buildings plan, which could help pay for the replacement of Great Neck Middle School and College Park Elementary.

But in most other local cities, the money will be used to prevent layoffs.

"I'm thankful for anything we got back," said Vicki Lucente, Chesapeake schools' assistant superintendent for budget and finance. "That's more positions we don't have to do anything dastardly with."

The less-restricted stimulus money is slated to be used in Chesapeake to maintain 151 positions that would have otherwise been cut. Eighty-three vacant jobs were cut. Other money is being saved to prevent a bigger disaster next year.

According to the U.S. Department of Education, the stimulus money is supposed to further four goals: strong standards and assessments; improving systems to track student data; improving the distribution of high-quality teachers; and turning around the worst schools.

In Norfolk, Karen Jones Squires wants the money used to replace school buildings.

She co-chaired an advisory committee that looked at a building plan for the school division. Eighty-three percent of the 35 Norfolk elementary schools received an F for school condition in a 2007 study. The city is spending $5 million of its $121 million capital budget on schools this coming year.

"To me, the most sensible use of the money is to improve infrastructure," she said. "Norfolk is in desperate need."

John Maniscalco, chief financial officer for Norfolk schools, said the board chose to spend the money to preserve jobs and save programs that were on the chopping block.

The money will save 188 jobs, plus funding for a summer program for sixth-graders, dual-enrollment programs with local colleges, a five-day schedule of bus athletic runs and a subsidy for Advanced Placement tests.

He said he "absolutely" wishes the city got more money and that there are plans to apply for competitive grants to do more.

Squires said she hopes the city finds additional money soon.

"We have this opportunity to get additional federal assistance," she said. "At some point these structures will be beyond repair."

Lauren Roth, (757) 222-5133, lauren.roth@pilotonline.com