ROANOKE TIMES

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

DATE: MONDAY, December 26, 1994                   TAG: 9412270106
SECTION: VIRGINIA                    PAGE: A1   EDITION: METRO 
SOURCE: WARREN FISKE STAFF WRITER
DATELINE: RICHMOND                                 LENGTH: Medium


ALLEN TAX PLAN A POLITICAL QUANDARY FOR DEMOCRATS

In an exasperated voice, state Sen. Clarence Holland recently ticked off objections to Gov. George Allen's plan to reduce state income taxes by $2.1 billion.

The Virginia Beach Democrat questioned the wisdom of slashing taxes at the same time Allen wants to cut funding to many colleges and borrow money to build prisons. ``It seems that the governor is saying that all the goals we've had for last 25 years aren't right,'' Holland said.

But don't mark Holland down as a vote against the Republican governor's budget plan.

``I have to make a decision whether I can live with this or run for re-election taking an unpopular stand,'' Holland said. ``It's an absolutely tough decision. You really have to decide whether you want to be a statesman or a politician.''

Scores of other Democratic lawmakers across the commonwealth face the same dilemma. With all 140 General Assembly seats up for election next November and Republicans poised to win ruling majorities for the first time in state history, many wonder whether the Democrats can dare vote against tax relief - no matter how good their reasons.

Democrats grudgingly admit that Allen, the first Republican governor to win office in 16 years, has them over a political barrel.

``We can make a case that the tax cuts are irresponsible and harmful to our financial future, but the public won't listen,'' Del. Jay DeBoer, D-Petersburg, said. ``We can't win the war of 15-second sound bites.''

Many veteran lawmakers with more than two decades of experience say they have never seen the future of state government at a more crucial crossroads.

Republicans argue that state government has become fat and wasteful under Democratic leadership. To pay for tax cuts that would reduce an average family's burden by about $350 a year, Allen is proposing sizable layoffs in the state bureaucracy and trimming aid to localities, the arts, social service programs and many colleges.

Democrats say Virginia has a proud tradition of fiscally responsible government, and they question the need for reform. They note that the Old Dominion already has one of the lowest tax burdens in the nation, is one of only five states with a perfect triple-A credit rating, and has twice this decade received awards as the top financially run state.

``The governor's saying, `If it ain't broke, fix it,''' state Sen. Richard Holland, D-Windsor, said.

Many Democrats denounced Allen for promoting a political agenda that, they say, will impair vital state programs that are already efficiently run. They accused the governor of unfairly trying to extend public dissatisfaction with Congress to the General Assembly in an effort to sway next year's elections. Republicans need to gain only three seats in the state Senate and four seats in the House of Delegates to win majorities in both chambers.

``This is all calculated to the state elections and taking over the General Assembly,'' Del. Jerrauld Jones, D-Norfolk, said. ``It's good politics, but it's not good governing.''

Republicans can't suppress a chuckle at the Democrats' discomfort. ``They sound a lot like we did all those years when we were out of power,'' said Senate Minority Leader Joseph Benedetti of Richmond.

Ken Stroupe, a spokesman for Allen, warned that Democrats who oppose the plan will face certain peril. ``This is a threshold decision that will define every elected official in the commonwealth,'' Stroupe said. ``There's a tremendous amount of waste in government. Those who defend the status quo have forgotten what the voters want.''

Democrats argue that Allen's plan will cost taxpayers more money in the long run. They predict that Allen's insistence on scrapping a $300 million-a-year business-receipts tax levied by localities will force hard-strapped municipalities to increase property taxes.

And they say the governor's plan to borrow money for prisons at the same time he is lowering income taxes could jeopardize the state's credit rating - an argument Allen says is bogus.

Democrats are hoping to piece together a coalition of education leaders, local government officials and businessmen to urge rejection of Allen's budget. ``That would give legislators some comfort and cover,'' said a key Democrat who asked not to be identified.

They also voiced hopes that some Republicans might be tempted to stray from Allen's plan for the sake of protecting local programs. The governor's plan has something in it for everyone to hate. Hampton Roads lawmakers, for example, are upset about the proposed elimination of funds for a downtown Norfolk campus of Tidewater Community College. Roanoke lawmakers are angered by Allen's refusal to supply $700,000 for development of a high-technology conference center at Hotel Roanoke.

``I'm hoping that in misery, there is not only company, but an emerging majority,'' Del. Clifton ``Chip'' Woodrum, D-Roanoke said.

In the end, however, Democrats acknowledge that it may be impossible to persuade voters that tax relief is not in their interests. And that makes for a tough decision.



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