Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, January 12, 1995 TAG: 9501130044
SECTION: VIRGINIA PAGE: A1 EDITION: METRO
SOURCE: WARREN FISKE STAFF WRITER
DATELINE: RICHMOND LENGTH: Long
Allen, a Republican, acknowledged deep divisiveness in the legislature in calling for support for his five-year plan to deeply cut state programs and reduce state income taxes by $2.1billion. Democratic leaders have called the plan irresponsible and warn that it would undermine essential state services such as education.
The governor described the tension as a philosophical debate over the future role of state government. ``Will our state continue down the path of bigger government, increased spending and taxes, deepening dependency and declining values?'' he asked. ``Or will we make government smaller and more focused on core governmental duties - allowing you to keep more of your hard-earned money?
``Some have said that this will make this session of the General Assembly competitive,'' Allen added. ``So it may, and so it has.''
In the past, governors have always delivered the State of the Commonwealth speech before cheering throngs of legislators in the ornate chambers of the House of Delegates. Wednesday's bickering forced Allen to opt for the drab confines of a Capitol conference room, where television cameras showed him seated at a desk with a white venetian blind in the background.
Allen, stumbling through parts of his prepared text, crafted his speech as a direct appeal to voters. ``The truth is, I'd rather talk to you anyway,'' he said. ``Because this is your state government.''
He portrayed the Democratic-controlled legislature as possessed by a ``big government'' philosophy that has tripled the state budget in 15 years. During the past decade, he said, growth in state spending has exceeded that of the federal government and the rate of inflation.
``What do you all - the people of Virginia - have to show for the billions of your tax dollars state government has spent during the last decade?'' Allen asked. ``Students' test scores have shown no improvement. College tuition has risen sharply ... Jobs and investment have been lost to neighboring states. And violent crime has skyrocketed... ''
Allen said middle-class and low-income taxpayers deserve a break. ``You are the people who are carrying the heavy load - the folks who have been ignored while out-of-touch elitists and organized special interests have demanded more and more of your hard-earned money.''
If Allen's plan is adopted, a family of four with a federal adjusted gross income of $40,000 would save $46 in state income tax next year and $368 annually by the year 2000.
Allen also defended his five-year plan to phase out the gross business receipts tax that provides localities with $300 million in annual revenues. He called the levy a ``job killer'' that ``falls hardest on small businesses, especially new and struggling enterprises.''
Local officials have warned the loss of the revenue may force localities across the state to increase personal property taxes. To prevent that, Allen said he would be willing to send ``replacement funding'' to localities if the General Assembly comes up with a ``reasonable'' proposal.
The governor also:
nOutlined his proposal to require able-bodied welfare recipients to find work by limiting their benefits to two years.
nPromoted a back-to-basics education agenda and said he is committed to establishing publicly funded charter schools that could be run by private groups.
nEndorsed establishing an initiative and referendum process that would allow Virginia voters to bypass the General Assembly and put proposed laws on the ballot.
In a Democratic rebuttal speech, Lt. Gov. Don Beyer stressed the tough impact of Allen's proposed budget cuts - details Allen glossed over in his speech.
``Despite a century of progress at Virginia universities, today's budget will make our support for higher education among the lowest in the nation,'' Beyer said. ``Mental health services will be eliminated for tens of thousands, from the severely depressed to adults with mental retardation. The new budget will kill health clinics that diagnose children with disabilities - clinics that exist so kids can get a decent start.''
Beyer also noted that Allen has proposed eliminating dropout prevention programs at the same time he wants to borrow money for a massive prison construction program. ``Seems to me, if children are reached early enough, we might not need so many billions of dollars for new prisons,'' Beyer said.
The Democrat said that an average family in Northern Virginia would receive $33 of tax relief under the first year of Allen's plan. He questioned whether the savings would be worth cutting programs that would put 250 police officers on the street in cities and counties across Virginia and provide 32,000 ``meals on wheels'' for senior citizens shut in at home.
``Citizens have a right to demand that we manage frugally and wisely. We must be lean but not cruel, smart but not reckless.''
Beyer also suggested Allen's plan may be politically inspired during a year when all 140 members of the General Assembly face re-election. Republicans need gain only three seats in the House and three in the Senate to control the Legislature for the first time in history.
Keywords:
GENERAL ASSEMBLY 1995
by CNB