Lauren Roth
The Virginian-Pilot
©
VIRGINIA BEACH
For the second year in a row, the City Council plans to use school savings to balance the city's budget - a notion that has angered educational leaders.
The last-minute move, expected to be announced today, was developed by Mayor Will Sessoms and Vice Mayor Louis Jones. Both declined to comment on how much money the city will take or what it would be used for.
Last year, the city tapped the school fund for $8.8 million.
"If they're just going to take it from us, there's no reason to be fiscally prudent," schools Superintendent Jim Merrill said. "We do a good job of managing our budget. We've reduced spending. We've saved money and put aside money to fill budget holes. The reward is it's being taken from us."
The city should use its own reserve funds, Merrill said.
"It's not their money," Councilman Glenn Davis said. "It's the taxpayers' money. Those funds need to be used for other things the citizens demand or given back to the citizens."
About half of the city's budget goes to the school division. School money left over at the end of the year goes back to the city. Historically, this "reversionary money" was returned to the schools' budget. Over the past two years, school officials have set most of it aside as a reserve to balance future budgets.
The plan to tap the schools' fund coincides with growing support on the City Council to find money to build a new animal shelter and to move forward on the proposed Bayside recreation center. The two projects were not funded in City Manager Jim Spore's proposed budget.
About $9.8 million is needed to build the shelter, and about $2 million is needed to finish design work on the recreation center. Council members have ruled out raising the real estate tax as proposed by Spore.
The City Council meets today to complete its one-year budget starting July 1. The School Board will hold an emergency meeting tonight to respond to the council's changes.
Merrill said that depending on how much money the city takes, the loss could result in increased class sizes, a shorter school year and possible layoffs.
School Board Chairman Dan Edwards, who learned about the plan in a Thursday night call from Sessoms, said he's waiting to see how much the city will take. "I don't know if I've got a sand box or a sand pit," he said.
"It's certainly disappointing to find ourselves in this position again because we have been very proactive over the last few years to make sure we were prepared for the current economic circumstances," School Board Vice Chairman Bill Brunke said. "If the city knew they needed the money, they should have approached the schools earlier."
Aaron Applegate, (757) 222-5121, aaron.applegate@pilotonline.com
Lauren Roth, (757) 222-5133, lauren.roth@pilotonline.com
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jre: savings
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johnsmith
Best Savings
Citizens?
LOL, VB City Council has never been about the citizens
Once again
I see a bunch of guys whom I did not vote for taking their power and using it without the public's consent. Wasn't it just last year that I read a story about how Rec Center membership was DOWN? And they want to build a new one? I am a teacher, and I can say that when class sizes go up, achievement goes down. It is next to impossible to give every single child in a large classroom the attention they need. Sure, back during the height of the baby boomers' school years, class sizes were huge, but styles of teaching and demands in education since then have changed. We are no longer allowed to just give a student a book and say, "Now learn this," and walk away. Doing so is negligent in today's educational climate. But, this is what it will come to if class sizes are increased and teachers are laid off. And who suffers the most? The kids, that's who. There are those who don't want any taxpayer money going towards education, but they are in the minority.
wait...didn't I just read a
wait...didn't I just read a couple of weeks ago in the Virginian Pilot about how Virginia Beach had all this money in reserves to be used for different things? I understand the concept of reversionary funds and its true that its the taxpayers money that should go to different things the city needs. But taking money away from the schools after they've budgeted responsibly and accordingly, just doesn't sit well with me.
It's about choices
Reversion money are funds available over and above that which was budgeted for the fiscal year, i.e. extra money. Therefore, everything that was budgeted by the school system has been paid for. I'm shocked by some posters that the schools aren't heated or air conditioned, and leak. If that is the case, why wasn't money budgeted for these things? That has not been reported on, and I have to believe that would be news in this town. It would be helpful to know what the school system wanted to do with the extra money, so it can be compared to the stated city uses in the article ( animal shelter, rec center ). I believe the cost of a new Kellam High School is budgeted at over $100 million. The school operating budget is almost $900 million, I believe. Unlike some posters, I don't see anything diabolical by the Council in looking at school reversion money, and hope we get a list of what the school system wanted to spend the money on.
Wrong
Reversion Funds are created by the School System's expenditures coming in under budget. ie great finacial management. The funds are neede to offset 2011-12 reductions in funding due to no stimulus money. Please have a clue.
Actually reversion money is
Actually reversion money is money that was budgeted and not spent. The more prudent one is, the higher the amount of reversion funds. The schools tried to put the money in savings last year, but the City took it for light rail. Again, the schools want to put the money in savings in order to help balance the budget next year (without raising taxes) but the City wants it for non-essential projects... and probably raise taxes next year...
I liked this comment by someone else below
"...I can imagine sessoms giving his kids an allowance, they save the money for something they might want in the future. But when he runs out of beer money, he takes it back to pay for his habit."
Spend all the money now on instructional materials
Come on Merrill spend every dime before Sessoms, Jones, and the City Council commit a crime on education.
I Don't Understand
Why is it the school board is able to manage their budget responsibly, yet the City cannot? Who ever the controller/accountant for the School System, needs to go work for the Mayor's Office.
Due Dilligence
This type of behavior on the part of the schools and city council helps foster the worst practices in government finance. In Virginia, schools are fiscally dependent so the city can do exactly what it is proposing. However, being able to do something does not make it right. It is reasonable to assume that the schools are not overfunded in the current budgetary environment, so the amounts discussed are most likely genuine savings. Spending down to the last dollar is not fiscally responsible but too many government agencies do exactly that since there is a negative incentive system at work here. Agencies are actually punished for not spending all their appropriation. City managers, superintendents, board and council members, forget they are spending taxpayer money. Their goal is to work on behalf of the citizens and spend money entrusted to them wisely. Some incentives should be built into the system to reward, not punish, good financial management.