ROANOKE TIMES

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

DATE: THURSDAY, July 12, 1990                   TAG: 9007120157
SECTION: VIRGINIA                    PAGE: B1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium


BUDGET SHORTFALL IS HIGHER

A state budget shortfall for the fiscal year that ended last month will approach $150 million, about $50 million more than state officials had projected, Gov. Douglas Wilder said Wednesday.

The governor spoke at a news conference before meeting with his financial advisers to determine the exact amount. That figure will be announced Friday, said Laura Dillard, Wilder's press secretary.

Wilder said he will consider everything except a tax increase to balance the budget.

One option is cutting aid to localities, which covers about 57 percent of the state budget and includes funding for public schools.

"I'm mindful of the fact that certain localities have already undertaken certain contracts, hirings in school and certain other things," Wilder said.

"You look at those things obviously with a view toward hoping that you don't have to cut," he said. "We know that some localities are going to be harder hit than others because of the disparity in terms of income in these localities. We'll do everything we can to avoid that."

Wilder rejected suggestions from some legislators that he call a special General Assembly session to deal with a shortfall projected to exceed $300 million in the $26 billion state budget for 1990-92.

Wilder held the news conference to kick off a bipartisan campaign to urge voters to approve a new form of highway financing that will speed up construction of roads.

The governor said the campaign's co-chairmen will be Lt. Gov. Don Beyer, Attorney General Mary Sue Terry and Wyatt Durrette, a Republican who lost the race for governor in 1985.

The Nov. 6 referendum would allow the General Assembly and local governments to borrow money for highway projects by pledging gasoline tax revenues to pay off the debts.

"It makes sense. Build the road today, and pay for it by using the gas taxes from the drivers traveling along the road you built," Wilder said.

Among the projects that might be funded is the proposed road between Blacksburg and Interstate 81 that would lessen travel time between Roanoke and Blacksburg.

On other topics, the governor said he is unconcerned about press scrutiny of his heavy travel schedule and his use of the state helicopter for private trips.

"I have no apology to make for any behavior of mine in the conduct of the office of governor," he said.

He seemed amused when asked about tabloid newspaper reports in this country and abroad about his relationship with Patricia Kluge, estranged wife of America's richest man, John Kluge.

"Those things happen," he said. "I never thought I'd make the London paper."

Wilder said he is friends with both Kluges, who donated more than $200,000 to his campaign last year.



 by CNB