VB to take $8.8 million from schools

VIRGINIA BEACH, Va. (WAVY) - In its continuing budget talks, the Virginia Beach City Council announced that it plans to take $8.8 million from the school reserve fund to apply to two capital projects, according to a press release on the school district website.

The city plans to use the funds to build a new animal shelter, and to design and plan a new recreation center. Officials expect this to particularly effect the 2011-12 school year.

According to the release, with the loss of almost $9 million, class sizes may see "unacceptably large" increases, and some employees may lose their jobs.

The council will vote on its municipal budget on Tuesday, May 11.

This information was listed with the press release:

• The School Board/school administration has a long history of collaboration and cooperation with City Council.
• Mid-April, School Board approved a $639.2 million budget, balanced to offset a $21.2 million shortfall for 2010/11.
• What the school 2010/11 budget does: Safeguards instructional programs for children, protects employee jobs, and maintains health insurance costs to employees (increases not passed through to staff).
• What the school budget 2010/11 does not do: Provide employee raises, allow for program expansions, raise class sizes (in Year One of the biennium) or shorten instructional and employee calendars. (Note: Reducing the employee calendar means fewer paid days or, in essence, a pay cut for employees.)
• Through an energy efficiencies program and implementation of strategic cost-saving strategies, the school division has developed a reserve/savings fund of $23.5 million.
• These savings are the result of systematic planning and often painful decision making including closing a school, ending the year-round school program, eliminating an after-school program at three schools, eliminating central office positions and some temporary employment agreements and making changes to the overtime policy and health care plan eligibility - to name a few.
• This money is critical during our current economic crisis because it will be used to offset future (more drastic) cuts to programs and employees.
• The 2011/12 school operating budget requires the transfer of $11 million from savings and is still predicated on having to raise class sizes and increase the minimum number of students required to "make" a class at the high school level.
• City officials informed school officials of the city's intent to take $8.8 million from school savings to fund two of the City's capital projects, a new animal shelter and a new recreation center.
• School administration understands these needs for the community; however, school leadership questions the desire to take money from student education to fund them especially when published media reports indicate that the City maintains a $167 million fund balance.
• The City transferred $8.8 million dollars from the school reserve funds last year in order to fund road projects included in the City's 2009/10 budget. The School Board and school administration supported the transfer for two reasons:
       1. To help avoid the possibility of a tax increase for citizens;
       2. It was positioned by City leaders as a one-time necessity - not a default budget-balancing strategy.
• If the city takes an additional $8-$9 million from school savings/reserves, it is likely that the school division will be forced to cut jobs in 2011/12 instead of relying on attrition.