ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, December 3, 1994                   TAG: 9412050041
SECTION: VIRGINIA                    PAGE: B1   EDITION: NEW RIVER VALLEY 
SOURCE: ALLISON BLAKE STAFF WRITER
DATELINE:                                 LENGTH: Medium


RADFORD'S BUDGET MAY ESCAPE TRIMS

Radford University, with $1.6 million at risk, received what sounds like good news Friday: Budget cuts might be avoided because its restructuring plan has received a thumbs-up from the staff of the State Council of Higher Education.

Secretary of Education Beverly Sgro could not be reached for her opinion of the plan to merge programs and cut unnecessary classes, but summary reports from the council say that she "agrees with these staff recommendations."

But there remains the question of support from Gov. George Allen, who has said that colleges whose plans were not accepted by October could face budget cuts as high as 6 percent. That position apparently has not changed, said Kari Walter, Sgro's spokeswoman.

And late in the day, Allen's chief spokesman questioned the propriety of the council staff's recommendation.

"The [council] staff, they do not make the decisions. The board meets Dec.13," Ken Stroupe said. "It's almost as if the staff is acting as the board. For the staff to issue public statements, I think, is highly unusual."

The staff's recommendations were included in a news release on the agenda for the council board's Dec.13 meeting, when it will consider the plans. The meeting caps months of effort to get colleges and universities to merge programs, cut staff and make better use of their campus buildings.

The General Assembly mandated the plans to save money as the higher education system prepares for an influx of more than 63,000 students in the next 12 years.

Budget cuts have lopped $413 million from the state's higher education system since 1990. And at a meeting of the Senate Finance Committee on Friday in Blacksburg, a staff report stated, "It is unlikely that the restructuring efforts alone will allow colleges and universities to satisfy [enrollment] demand within the existing funding framework."

The state council board last month approved plans by 10 colleges and universities. Rejected were plans from Radford, Longwood, Mary Washington, Norfolk State, Virginia State and Christopher Newport. All but Virginia State and Christopher Newport now have the council staff's recommendation for approval.

Radford's governing board of visitors was so upset by the rejection that it placed a freeze on pending faculty and administrative raises until the plan was in acceptable shape. It lifted the freeze Nov. 23, pleased with a revised plan that will reduce per-student costs to the school by more than $700 in the next 10 years.

Although the council staff recommendation was good news, acting university president Charles Owens said there was "some indication" that Allen still might withhold funds.

Allen probably won't reveal his plans until Dec.19, when he unveils his budget.

But Stroupe, who said he did not know Allen's final decision on the six colleges, said "the budget decisions have been made, and the budget has gone to the printer's."

If Allen hasn't included the money, budget amendments will have to be issued - amid an atmosphere that will include Allen's proposed $2.1 billion in tax cuts, which are estimated to cost $149 million the first year. On top of that, $350 million is needed to pay for the settlement with federal pensioners and increased prison expenses related to parole reform.

Finance Committee Chairman Hunter Andrews, D-Hampton, said, "The governor better be sure he puts their money in their budgets."

There's been talk of putting the college funds in escrow until the plans are approved.

Meanwhile, at Radford, Owens said, "We can't afford to have the budget cut that represents, so we will certainly do everything we can to convince people we shouldn't be financially punished."


Memo: shorter version ran in the Metro edition.

by CNB