Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, December 21, 1994 TAG: 9412210083
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: KENNETH SINGLETARY STAFF WRITER
DATELINE: LENGTH: Medium
Virginia Tech may see 275 jobs statewide trimmed from its extension service, and its agriculture and forestry research programs may lose 85 jobs. Radford University's College of Global Studies was axed in the governor's proposal.
But workers at other area agencies that receive state funding - not just the valley's universities - are reeling, too.
New River Community Action stands to lose all of its block-grant funding from the state under the governor's budget and tax cut proposal. In that agency's current budget, the state provides $115,000, a third of its block-grant funds.
"There's a chance things would very much come to a stand still" without that money, said Terry Smusz, executive director. "It would cripple New River Community Action."
Community Action, which employs almost 100 full- and part-time employees and serves 12,500 clients in the valley each year with a $2.4 million budget, uses the state money for crucial needs. It pays for everything from planning and program development to the provision of emergency food and fuel assistance for poor people, Smusz said.
"If this money is not put back in through hopefully a budget amendment, there will be very serious consequences in this agency."
Del. Jim Shuler, D-Blacksburg, predicted the Democratic-controlled General Assembly, which convenes next month, will not acquiesce to the budget cuts proposed by the Republican governor.
"The battle will be in the General Assembly. ... Unfortunately, I think things will get very partisan."
The budget cuts, which he said "are bordering on being absurd," have come about because Allen has a "national agenda to attend to," Shuler said.
Del. Tommy Baker, R-Dublin, said Allen as governor has done exactly what candidate Allen said he would do.
But he added, "I think what we're going to have to do is take a serious look at what the governor has proposed and take a serious look at the impact in our districts."
Both Shuler and Baker said they have been fielding calls from constituents worried about cuts in state services and from state employees who are worried for their jobs.
Dan Farris, director of Montgomery County's Department of Social Services, said some of his agency's programs are fully funded from state and federal sources and some of those programs are staffed at 60 percent and others at 70 percent, he said.
"Obviously, any additional cuts are going to affect [those programs] negatively," said Farris, whose office employs 57 people, including seasonal and part-time workers.
Adding to his woes, he said, is Allen's early retirement package for state workers and his stricture on hiring replacements.
"Even if we lose two people and we can't rehire, that's going to be a problem."
But around the New River Valley, many state workers have not had time to digest the news.
It's not clear to what degree local agencies will feel the impact of budget cuts, said Lynn Chenault, director of community services for the valley, which provides mental health and substance abuse counseling. His agency's Richmond headquarters may absorb budget cuts and not pass them along, he said.
And not all state workers are bemoaning the cuts.
"In general we think the idea of right-sizing state government is good," said James Clark, state forester for parts of the valley, whose office has four employees.
"Our agency is not concerned because the thought is there is justification for our budget."
And even though the New River Valley has about 9,000 state employees, 16 percent of its work force, not everyone is a doom-sayer.
"I think we're going to survive. As long as we can get through the winter without having to layoff VDOT [Virginia Department of Transportation] employees who keep the roads clear ... we'll be all right," said John Beamer, president of the Montgomery County Taxpayers Association.
Beamer downplayed the impact of university budget cuts, saying Virginia Tech employees, many of whom are highly educated, "are probably going to be able to fend for themselves much, much better than someone who's been knitting socks all their life."
He said much of the early response to the cuts has been knee-jerk reactions.
"I think everything's going to probably work out just fine."
The biggest impact may be felt in the real estate market, he said. Prices may fall as people lose their jobs and leave the area.
Memo: ***CORRECTION***