Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, June 28, 1993 TAG: 9306280151
SECTION: VIRGINIA PAGE: C-3 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
Wilder told the Richmond Times-Dispatch in today's editions that he is considering calling a special General Assembly session to devise the referendum.
Wilder said legislators at the session, which probably would be held in September, would draft questions on the pension-tax case that would be put before voters in a nonbinding referendum on Nov. 2.
"The referendum would only be advisory," Wilder said, emphasizing that it was essential that Virginians give their opinions about what would be a fair and equitable payment to the pensioners and how it would be financed in light of a recent U.S. Supreme Court decision.
The high court ruled that unless Virginia could prove otherwise, the state owes refunds to about 200,000 federal retirees for taxes the state collected while exempting the pensions of state and local officials.
Virginia's potential tax liability is $469 million, which comes as the state might face a revenue shortfall of $500 million to $700 million in the 1994-96 budget, which begins July 1, 1994.
Wilder said he has not discussed the idea with the General Assembly leadership or the attorney general's office.
He said the referendum would help guide him as he prepares the 1994-96 budget, which must be presented to the legislature Dec. 20, about three weeks before he leaves office.
Wilder discussed his proposal in an interview in Honduras, where he arrived Sunday for a five-day trade and cultural mission.
The proposed referendum and his conciliatory stance toward the pensioners put him at odds with Democratic gubernatorial candidate Mary Sue Terry. She opposes any repayments to the retirees unless the Virginia Supreme Court orders them.
Terry's opponent, Republican George Allen, has said the state should pay the retirees in some kind of settlement.
by CNB