The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Wednesday, November 23, 1994           TAG: 9411230478
SECTION: FRONT                    PAGE: A01  EDITION: FINAL 
SOURCE: BY WARREN FISKE, STAFF WRITER 
DATELINE: WILLIAMSBURG                       LENGTH: Medium:   85 lines

SEAMLESS GOP TAKEOVER HITS A SNAG STATES' POWER WILL COMWE WITH A PRICE TAG

The Republican revolution ran into reality Tuesday. New leaders of Congress agreed with the nation's GOP governors that states should have more power, but warned that there will be a price for it.

A galaxy of Washington's Republican superstars declined to embrace any specific reforms urged by the governors at the close of a three-day conference. Instead, the message was that along with fewer mandates, the new Congress may be sending less money to the states as it works to balance the federal budget by 2002.

``We can say to the states that we can get out of the mandate business, but we also have to get out of the money business,'' said Sen. Robert W. Packwood, R-Ore., who will become chairman of the Senate Finance Committee in January.

The soon-to-be chairman of the Senate Budget Committee - Sen. Peter V. Domenici, R-N.M. - said states soon may need to consider whether they want to pick up the slack for reduced federal funding for entitlement programs such as welfare and Medicaid.

``The question is would you spend money from your own state on programs if federal money were not available?'' he asked.

The warnings capped an otherwise jubilant gathering of the nation's 30 Republican governors and governors-elect at the Williamsburg Lodge.

The GOP governors, who in January will run a majority of state governments for the first time in 30 years, issued a strong call for less interference from Washington in administering programs - particularly welfare reform.

Encouraged by national elections earlier this month that put Republicans in control of both houses of Congress for the first time since 1954, the governors said they would be willing to accept less money from Washington in return for fewer federal mandates.

On Tuesday morning, they expressed their message in person to the visiting two top leaders of the incoming Congress: Sen. Robert Dole, R-Kansas, who is expected to become Senate Majority Leader; and Rep. Newt Gingrich, R-Ga., who is slated to become Speaker of the House.

Dole pledged that the first bill introduced in the Senate next year will be a measure barring Washington from imposing new mandates on the states without ample funding for them. Beyond that, he declined to be specific.

``Give us a little time to work out the details,'' he said. ``The election was only two weeks ago.''

Gingrich also pleaded for time, saying the first 100 days after the next Congress convenes on Jan. 4 will be devoted to carrying out reforms Republicans promised this fall. They include congressional votes on a balanced budget amendment, school prayer and welfare reform.

Without being specific, Gingrich said he applauded the governors' call for a decentralized federal government. ``The founding fathers, every one of them, would approve of the spirit of this meeting,'' he said.

Governors left the meeting saying they were encouraged that the new GOP-controlled Congress will give states wider latitude and fewer mandates. ``The pleasure the Republican governors have is that, for the first time, we're sitting at the table with friends,'' said Gov. John Engler, R-Mich.

Virginia Gov. George F. Allen said he is willing to trade less money from Washington for fewer mandates. He noted, for example, that Virginia must bow to a variety of ``one-size-fits-all'' federal regulations on public education even though only 5 percent of the public school budget comes from Washington. Allen said localities should be given wider discretion in running schools.

Ultimately, Allen said he would like to see all federal monies delivered to Virginia in a single block grant that the state would be free to spend as it sees fit.

Although Allen said he was pleased with the unspecified statements of support from congressional leaders, he added that he would like more concrete assurances. Allen said he and other governors will push for reforms that would make it easier for states to amend the U.S. Constitution and allow states to veto federal laws and mandates that are overreaching.

Allen noted that Republicans are only assured of control of Congress until the next elections, in 1996. ``We want permanent protection that would last longer than two years,'' he said. ILLUSTRATION: Staff color photo by BILL TIERNAN

Sen. Bob Dole: ``Give us a little time to work out the details. The

election was only two weeks ago.''

Color photo

Incoming House Speaker Newt Gingrich, R-Ga.

by CNB