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

DATE: THURSDAY, September 1, 1994                   TAG: 9410130005
SECTION: EDITORIAL                    PAGE: A18   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

BOND FINANCING

WHO SAYS Byrd Democrats are extinct in Virginia? They haven't made much of a peep for a while now, but Gov. Allen's proposal for a general-obligation bond issue for prisons seems to have them all aflutter.

G.C. Morse, a former speech writer for Democratic governor Jerry Baliles, invokes the name of the father of Virginian fiscal conservatism to criticize the current governor: ``Harry Byrd said, `Pay as you go.' George Allen says, `Pay as the next generation goes.'''

By George, Morse is right - but Allen isn't the first or only governor since Byrd to propose general-obligation bond issues for capital projects. Don't forget:

Mills Godwin, Byrd

Democrat, sponsored the $81 million bond issue in 1969 that built the state's community-college system and brought its mental-health hospitals out of the dark ages.

Mills Godwin, Democrat turned Republican but hardly fiscal freewheeler, promoted a $125 million bonded-debt package in 1977 for prisons, colleges and mental hospitals.

Doug Wilder, then a Democratic governor, pushed for a $618 million bond issue in 1992 for parks, colleges and mental facilities.

Despite this borrowing binge, the state somehow has preserved its AAA bond rating, reflecting the financial community's judgment that Virginia remains able to handle debt wisely and responsibly.

If Morse questions this ability, perhaps he could get a job writing speeches for Mike Farris, the Republicans' failed candidate for lieutenant governor in 1993. Farris, who opposed incurring any state debt, would likely complain if Allen had wanted to borrow an umbrella on a stormy day.

Meanwhile, Senate Majority Leader Hunter Andrews of Hampton also voices strong reservations about bond financing for prisons. Never mind that he has probably sponsored more general-obligation bond packages for more good purposes than any other state legislator. Now he's not sure borrowing is a good idea.

And Del. Robert Ball, D-Richmond, chairman of the House Appropriations Committee, says Allen should give voters the choice of a bond issue or pay-as-you-go for prison construction with a sales-tax increase. Note that Ball is not suggesting that Democratic lawmakers should approve a sales-tax increase to help Allen out. You think he's a cuckoo bird?

These legislators have a general obligation to check Allen's math as to how much money will be needed, and when, for his prison-construction spree. It's curious, nonetheless, that there wasn't all this chirping about pay-as-you-go until Republican Allen was elected and the Democrats' worm seemed to turn.

by CNB