Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, July 12, 1990 TAG: 9007120549
SECTION: VIRGINIA PAGE: B8 EDITION: EVENING
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
Wilder said Wednesday he will consider everything but a tax increase to handle the shortfall, which he said is about $50 million more than the $100 million he estimated before the fiscal year ended June 30.
"Everything is on the table relative to cutting the spending," he said at a news conference. "Putting everything on the table doesn't mean everything will be affected but that means everything will be considered."
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 said he saw no need for a special General Assembly session to deal with a shortfall projected to exceed $300 million in the $26 billion state budget for 1990-92.
The governor 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 new roads.
The governor said the campaign's co-chairmen will be Lt. Gov. Donald Beyer, Attorney General Mary Sue Terry and Wyatt Durrette, a Republican who lost the race for governor in 1985.
The referendum on the Nov. 6 ballot 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.
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 on 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