Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 31, 1990 TAG: 9007310485
SECTION: VIRGINIA PAGE: A3 EDITION: EVENING
SOURCE: ROBERT EURE STAFF WRITER
DATELINE: LENGTH: Medium
Dwight Holton, whose father, Linwood Holton, toppled the powerful machine of Harry Byrd with his election as governor in 1969, today was appointed head of an effort to battle Byrd's strongest legacy - Virginia's cherished "pay-as-you-go" policy.
Holton, 24, will direct an effort backed by Gov. Douglas Wilder for passage of two referenda that would allow the state and localities to issue pledge bonds for transportation projects.
Holton, a key aide in Wilder's 1989 gubernatorial campaign, will take a leave of absence from the office of Human Resources Secretary Howard Cullum to direct a campaign for the two constitutional amendments on the Nov. 6 ballot.
If the amendments pass, the General Assembly and local governing bodies for the first time would be able to borrow money for roads and other transportation projects by pledging specific future revenue to pay off the debts.
Wilder announced this summer that he backs the amendments and would name a campaign committee to raise private money to promote a favorable vote.
So far, there appears to be no organized opposition to the referenda, although some rural legislators have recently expressed reservations that borrowed money would be used largely to finance road projects in traffic-congested Northern Virginia and Tidewater.
Further, some traditional financing proponents argue that debt financing would cost more in the long-run and could force future tax increases.
At the heart of the issue is whether Virginia will abandon the final vestiges of the "pay-as-you-go" principle that has been a hallmark of the state's spending policies for 100 years.
Approval of the referenda would open up the possibility of borrowing about $5 billion for transportation construction. The state, however, would be limited to borrowing about $1.2 billion in the first four years following the voters' approval.
Although the pay-as-you-go philosophy still dominates Virginia political rhetoric, the state has already departed from it in a number of areas. Virginia has issued bonds to build colleges, prisons, hospitals and parks and to finance public needs such as low-income housing, and low-interest loans for farmers, students and small businesses. As of March 31, the state had an outstanding debt of about $5.8 billion.
In 1986, then-Gov. Gerald Baliles wanted to abandon the no-borrowing policy toward roads as part of his massive transportation tax program. Although the idea of financing roads through bonds was embraced by Baliles' transportation commission, including five former governors, the legislature balked.
The no-borrowing principle was institutionalized by Harry Byrd, whose political machine ran Virginia from 1925 into the 1960s.
When Linwood Holton won the governorship in 1969, becoming the first Republican governor in Virginia since Reconstruction, it spelled an end to the Byrd machine's political control.
Dwight, Holton's youngest son, has differed from his father by joining politics on the Democratic side. He operated an advance team for Democratic presidential nominee Michael Dukakis in 1988 and was Wilder's scheduler in 1989.
by CNB