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

DATE: WEDNESDAY, April 17, 1991                   TAG: 9104170233
SECTION: VIRGINIA                    PAGE: B1   EDITION: BEDFORD/FRANKLIN 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

GOP CHAIRMAN SAYS DEBT DOWN

Donald Huffman of Roanoke said short-term bills have been cut by $65,000 and a long-term note by $7,500.

"We are $70,000 better off than we were at the beginning of the year," Huffman said Monday. "We are in pretty sound financial shape."

He said the party is "current in [the payment of] all our debt" except for a substantial printing bill that is in dispute.

In February, an internal document obtained by The Richmond News Leader showed the state GOP had short-term debt of $114,511 with $21,944 to cover it at the end of January. The document also showed that the party's financial standing had crumbled since early 1990.

Since January, the party has raised more than $200,000 through direct-mail solicitation, Huffman said.

He also said the state GOP hopes to lure former President Reagan to Virginia for a fund-raising dinner this summer.

"It looks like he can do it," Huffman said.

The state GOP has been plagued by financial problems since 1989, when Huffman revealed that the party owed more than $200,000 in taxes, penalties and interest to the Internal Revenue Service.

The party blamed a former bookkeeper for failing to pay quarterly withholding taxes for almost two years.

To pay that debt, the party borrowed $125,000. Huffman and the 10 members of the executive committee co-signed the note.

The balance as of Jan. 31 was $116,000. Huffman said the party is paying $2,500 a month in interest on the loan.

He said the party still has not found a replacement as finance chairman for Marvin Bush, son of President Bush, who resigned earlier this year for personal reasons.