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

DATE: SATURDAY, January 14, 1995                   TAG: 9501160032
SECTION: VIRGINIA                    PAGE: C-2   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Short

BALANCED U.S. BUDGET COSTLY TO VA.

The federal balanced-budget amendment would cost Virginia at least $1 billion a year should it ever take effect, says the U.S. Treasury Department.

A state-by-state report issued by the department also says Virginia could lose another $400 million a year in federal aid if other provisions of the Republicans' ``Contract With America,'' including a tax cut for most Americans, are enacted along with the constitutional amendment.

Under the balanced budget amendment, Virginia stands to lose $490 million a year in Medicaid funding, $72 million in highway funds, $49 million in welfare payments and a total of $393 million in money for education, job training, environmental protection and housing.

Terri L. Hauser, director of Virginia's liaison office in Washington, dismissed the report as highly speculative.

by CNB