Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, June 9, 1994 TAG: 9406100015
SECTION: VIRGINIA PAGE: A-14 EDITION: METRO
SOURCE: Associated Press
DATELINE: NORFOLK LENGTH: Medium
The subcommittee of the Senate Finance Committee also didn't give a timetable but promised about 50 retirees crowded into the meeting in the Virginia Port Authority's board room that they would get a hearing later to air their views.
The proposal was announced last month after talks between retiree groups and House Majority Leader Richard Cranwell, D-Roanoke County. Gov. George Allen and Attorney General Jim Gilmore support the deal. Senate leaders were not involved in the discussions.
Senate Majority Leader Hunter Andrews, D-Hampton and chairman of the Finance Committee, said four-way cooperation among the House, Senate, governor and attorney general is needed.
``Unless we have that spirit, no resolution of this is going to be possible,'' Andrews told the retirees, who were not allowed to address the subcommittee.
``The Senate right now is our major stumbling block,'' said retired Army Col. John Chapman, president of the Military Retirees' Taxpayer Association that helped negotiate the settlement.
Chapman interpreted Andrews' comments as an indication ``he's going to drag this thing out.''
The retirees believe the $340 million will be sufficient to provide full refunds without interest to federal pensioners whose income was taxed by the state from 1985 to 1988. The Supreme Court later declared the tax illegal.
Under the proposal, the refunds would be paid over five years. But the lowest amounts owed - $2,200 and less - could be fully paid in two years to settle the claims of about half of the retirees due money.
by CNB