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Featuring Rotarian Dan Edwards

Beach schools end budget year with $33 million surplus

By Lauren Roth, The Virginian-Pilot , 9/24/2008

VIRGINIA BEACH

The School Board got a back-to-school surprise Tuesday night. It learned $33.1 million is left over from the budget year that just ended.

The money, called reversion funds, came from a combination of conservative budgeting, cost trimming and unexpected government dollars. Reversion funds can be used only for one-time expenses, not annual items such as salaries.

Chief Financial Officer Farrell Hanzaker suggested the money be held aside to pay for expected shortfalls in this year's budget. He said those could total $20 million between state and local funding and proposed putting the bulk of the money in a reserve fund, which would require the approval of the City Council.

Board Chairman Dan Edwards said he hopes most leftover funds would be dedicated to upkeep and replacements for school buildings.

"Otherwise we'll be keeping students in older, less efficient buildings for far longer than we should," he said.

He defended the budgeting that left the division with extra money in areas including gas and utilities.

"We can't spend to zero," Edwards said. "We have to be conservative."

If money remains available, Hanzaker recommended the board spend $8.2 million on tutoring, buses, school maintenance, technology and teacher training.

The board also heard a mixed progress report on the city's four year-round schools. In December, the board will receive recommendations on whether each school should continue to operate year-round.

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

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