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

DATE: WEDNESDAY, March 7, 1990                   TAG: 9003071849
SECTION: VIRGINIA                    PAGE: C7   EDITION: METRO 
SOURCE: ROB EURE POLITICAL WRITER
DATELINE: RICHMOND                                 LENGTH: Medium

HOUSE AND SENATE START NEGOTIATIONS ON BUDGET DIFFERENCES

House and Senate budget negotiators began work on solving some $18 million in differences between the bottom lines in their budgets Tuesday while facing an uncertain revenue picture caused by delays in both chambers on measures to raise money.

The three senior members of the House Appropriations Committee and the Senate Finance Committee said they would meet tonight's deadline for finishing work on the $25.8 billion budget for 1990-92.

But differences in the two bills, including $60 million over aid to localities from state real-estate transfer taxes, threatened the deadline.

Moreover, a handful of critical revenue measures - mostly delays in tax reductions - remain in conflict on each chamber floor.

"They'll have to settle those differences before they can act on the budget," said Del. Richard Cranwell, D-Vinton, chairman of the House Finance Committee.

Although the revenue measures passed by the Senate finance panel and Cranwell's committee are largely in agreement, the bills have enough differences to require a solution either by the full Senate and House or in conference committee.

No action was taken Tuesday in either chamber on the measures, so the bills are not technically in position to be resolved by conferees.

The main differences between the budgets involves salaries for teachers, faculty members and state employees. The Senate wants to give 5 percent raises for next year, and the House has proposed 4.5 percent raises.

Gov. Doug Wilder, in an unusual move last week, informed the conferees by letter that he prefers the House's lower raises.

The two budgets also are in disagreement over the distribution of the real-estate recordation tax. The House proposed sending $60 million of that money back to localities in the two-year budget period. The Senate would send back none.

Wilder wants to see $40 million go to localities and spend the money saved to preserve an income-tax credit of $22.50 for the poor next year. Both the House and Senate budgets would defer the tax credit for both years of the budget.

Tuesday evening, as the budget negotiators retired from a perfunctory public meeting to begin working out their differences in secret, Sen. Stanley Walker, D-Norfolk - one of the Senate negotiators - said he expects the problems can be resolved before the deadline.

"We'll give it our best shot," he said.

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