CLINTON'S CUTS TO HIT VA. HARD, ECONOMIST SAYS

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

DATE: THURSDAY, March 11, 1993                   TAG: 9303110323
SECTION: VIRGINIA                    PAGE: C4   EDITION: NEW RIVER VALLEY 
SOURCE: Associated Press
DATELINE: WILLIAMSBURG                                LENGTH: Short
CLINTON'S CUTS TO HIT VA. HARD, ECONOMIST SAYS
President Clinton's program to reduce the federal deficit probably will hit Virginia harder than most other states, says a leading Virginia economist.
"For the Virginia economy, the more a deficit-reduction program relies on tax increases, the better off we are," said Roy Pearson of the College of William and Mary.
But the Clinton plan combining tax raises and spending cuts would cost the Virginia economy about $12.5 billion over the next four years, said Pearson, director of the college's Bureau of Business Research.
Pearson, in his latest Virginia Business Report, estimated that Clinton's proposed spending reductions would cut $5.7 billion from federal wages paid in Virginia and the purchases of goods and services from state companies.

by Archana Subramaniam by CNB