Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, December 28, 1994 TAG: 9412280075
SECTION: VIRGINIA PAGE: B-1 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
The Virginia Municipal League, which represents 41 cities, 154 towns and 15 counties, criticized Allen's plans to cut $100 million from local programs next fiscal year. The league also objected to his proposed repeal of a business gross receipts tax, which would cost localities $300 million after the tax is phased out over five years.
If the tax is abolished, localities should get more state aid or be allowed to impose other taxes, said Michael Amyx, the league's executive director.
Even in areas in which Allen is proposing more funding, the league said the increase does not keep up with demand for services.
``The governor's proposed budget amendments would badly erode the local tax base and eliminate nearly $100 million in funding for essential public service programs, such as at-risk student education, and for health and social services for the elderly and disadvantaged,'' Amyx said.
An Allen spokesman said the league's claims were exaggerated.
``It's really making a mountain out of a molehill,'' Ken Stroupe said. ``Aid to localities is still growing. It's just not growing at the rate that it was.''
Even with Allen's cuts, state aid to local governments would increase 13.4 percent in the 1994-96 budget over the 1992-94 budget, Stroupe said.
The league said a $5.9 million cut in funding for local police would come on top of a $4.3 million cut last year and would particularly hurt towns. Towns may no longer be able to provide 24-hour-a-day police protection, forcing their counties to pick up the slack, the group said.
The league accused Allen of reneging on a promise to reduce the number of state prisoners in local jails. Administration officials promised in August to immediately reduce the number of convicts being held in local jails while they await transfer to state prisons. On Sept. 22, there were 1,782 of those inmates in local jails. By Dec. 1, that number that risen to 2,320, a 30 percent increase in nine weeks.
In education, Amyx complained that Allen's budget proposes a 1 percent increase in state funding while the student population is growing by 2 percent a year.
Cuts in health care and other programs for the poor will cause more indigents to use expensive hospital emergency rooms and reduce in-home meals and nursing services for the elderly, forcing them into costly nursing homes, he said.
by CNB