ROANOKE TIMES

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

DATE: MONDAY, February 4, 1991                   TAG: 9102040330
SECTION: VIRGINIA                    PAGE: A1   EDITION: EVENING 
SOURCE: ROB EURE POLITICAL WRITER
DATELINE: RICHMOND                                LENGTH: Medium


TWO PLANS REDUCE CUTS WILDER SEEKS

The Senate Finance Committee Sunday night appeared ready for a battle with Gov. Douglas Wilder, approving a budget that differs sharply from his $26.2 billion spending plan, cutting his reserve fund and eliminating a plan for budget reserves.

The House Appropriations Committee generally followed Wilder's proposals, but its budget includes controversial use of state aircraft and reporting fully on how the aircraft are used.

Both powerful money committees reduced many of the spending cutbacks Wilder has sought to meet an estimated $2.2 billion revenue shortfall, including restoration of some cuts to local education money. The Senate plan is more generous, seeking to reduce the $151 million cut in local aid by $56 million; the House found $41 million for school relief.

And both committees call for allowing increases in fees and tuitions at state colleges and universities to House kills measure allowing localities to relax education standards. A3 offset cuts in state support. The Senate would allow the schools to raise $45 million; the House $41 million.

But the Senate plan was clearly aimed at rebuffing Wilder in any number of areas. The Senate plan calls language curtailing Wilder's for spending one-half of the governor's $200 million rainy day fund - money Wilder has insisted he should keep in case the state's financial condition worsens.

Senate Finance Chairman Hunter Andrews, D-Hampton, called the $100 million reserve a "middle ground" between Wilder's plan and those who want to spend the entire reserve.

The Senate also overturned Wilder's plan to use money from the state Literary Fund to back bonds for local school construction - a $162 million issue that the House has accepted. By issuing bonds, Wilder intended to take a like amount from the principal of the fund for teacher retirement payments.

"We just felt in a number of places his cuts did not represent good management," said Sen. Joe Gartlan, D-Fairfax. "We saw [the Literary Fund bonds] as deficit financing of operating expenses."

Both committees increased the price to the Virginia Retirement System for buying full rights to sell the state's 20 percent share of the RF&P Railroad - maneuvers that raised extra money for both committees to spend.

In a local matter, the Senate plan also calls for cuts in extra funding for the Roanoke County Police Department. That money was won by local legislators last year to cover the higher cost of the new police force. The Police Department money - which amounts to about $500,000 - apparently is being withheld so Andrews can pressure Del. Richard Cranwell, D-Vinton, and chairman of the House Finance Committee, to pass several business tax measures that are crucial to the Senate's plan to send money to local education.

Cranwell, along with leaders on the House Appropriations Committee, has fallen in behind Wilder, backing his revenue reserve fund and opposing taxes.

Neither committee was happy with Wilder's unprecedented proposal to furlough state employees up to three weeks in the next 18 months. In eliminating it from their plan, senators warned it could have devastating effects on morale.

The House reduced the furlough to eight days, and drew up language aimed at forcing Wilder to use the $200 million rainy day fund before ordering leave without pay.

The House plan, though closer to Wilder on spending, spells out some strict rules for the use of state aircraft. It says that except for official use, state airplanes and helicopters can be used only in an emergency. Even then, the state must be reimbursed with non-state money. It also forces Wilder to make the state flight logs public immediately.

Following extensive publicity for his use of state aircraft for private trips, particularly with Albemarle County socialite Patricia Kluge, Wilder closed access to flight logs for a time last year and now has made them available on a limited basis.

Del. Steve Agee, R-Salem, introduced legislation that would have basically required the same rules on aircraft use. Although his bill was not passed, the budget language accomplishes his objective.

The full House and Senate vote on their budget plans Thursday. Traditionally, neither chamber makes significant changes in its spending plans. The differences are then negotiated in a joint conference committee.

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