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

DATE: WEDNESDAY, January 4, 1995                   TAG: 9501040116
SECTION: VIRGINIA                    PAGE: C-3   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                 LENGTH: Short

LOTTERY DIRECTOR TURNS DOWN 22 PERCENT RAISE

Virginia's lottery director has turned down a raise of up to 22 percent and will settle for a 2.25 percent pay boost that took effect Dec. 1.

Published reports last week that Gov. George Allen had proposed raising Penelope Kyle's salary from her starting level of $94,676 to a maximum of $113,558 over the next year angered some state workers and Democrats.

Allen spokesman Ken Stroupe said the Republican administration had promised Kyle a big raise because she took a substantial pay cut when she quit her job as corporate vice president of CSX Corp. last summer.

``The governor has kept his commitment ... and I appreciate that,'' Kyle said in a news release Tuesday. ``However, with the current budget situation and the governor's efforts to reduce the size of our state government, I feel the proposed amendment to my salary is not appropriate.''

Allen has proposed slashing $403 million in state spending to raise money for his prison-building and tax-cut programs. He also has proposed a pay increase of 2.25 percent for most state workers, prompting complaints that salaries are not keeping pace with inflation.

Kyle said she asked Allen to withdraw the amendment, and the governor agreed.

Democrats, who narrowly control the General Assembly, had said the proposed 22 percent raise would further demoralize the state work force. They also said it shows Allen's pledge to reduce the cost and size of government doesn't apply to his friends.

Allen wants to eliminate 1,100 state jobs this year, and his government reform commission has recommended elimination of 16,000 jobs.

by CNB